HDFC

HDFC BankNSEI:HDFCBANK Stock Report

Market Cap

₹8.6t

7D

-0.6%

1Y

44.0%

Updated

16 Sep, 2021

Data

Company Financials +
HDFCBANK fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends3/6

HDFCBANK Overview

HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai.

HDFC Bank Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HDFC Bank
Historical stock prices
Current Share Price₹1,559.95
52 Week High₹1,025.00
52 Week Low₹1,641.00
Beta0.90
1 Month Change2.99%
3 Month Change5.42%
1 Year Change43.96%
3 Year Change59.07%
5 Year Change138.73%
Change since IPO45,916.50%

Recent News & Updates

Jul 16
With EPS Growth And More, HDFC Bank (NSE:HDFCBANK) Is Interesting

With EPS Growth And More, HDFC Bank (NSE:HDFCBANK) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

HDFCBANKIN BanksIN Market
7D-0.6%3.5%2.0%
1Y44.0%62.1%60.1%

Return vs Industry: HDFCBANK underperformed the Indian Banks industry which returned 57.8% over the past year.

Return vs Market: HDFCBANK underperformed the Indian Market which returned 59.4% over the past year.

Price Volatility

Is HDFCBANK's price volatile compared to industry and market?
HDFCBANK volatility
HDFCBANK Beta0.90
Industry Beta1.01
Market Beta1

Stable Share Price: HDFCBANK is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: HDFCBANK's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994123,473Sashi Jagdishanhttps://www.hdfcbank.com

HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. It operates in Treasury, Retail Banking, Wholesale Banking, Other Banking Business, and Unallocated segments. The company accepts savings, salary, current, rural, public provident fund, pension, and Demat accounts; fixed and recurring deposits; and safe deposit lockers; as well as offshore accounts and deposits, overdrafts against fixed deposits, and sweep-in facilities.

HDFC Bank Fundamentals Summary

How do HDFC Bank's earnings and revenue compare to its market cap?
HDFCBANK fundamental statistics
Market Cap₹8.64t
Earnings (TTM)₹328.28b
Revenue (TTM)₹804.01b

26.3x

P/E Ratio

3.9x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HDFCBANK income statement (TTM)
Revenue₹804.01b
Cost of Revenue₹0
Gross Profit₹804.01b
Expenses₹475.73b
Earnings₹328.28b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)59.68
Gross Margin100.00%
Net Profit Margin40.83%
Debt/Equity Ratio78.7%

How did HDFCBANK perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is HDFC Bank undervalued compared to its fair value and its price relative to the market?

26.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HDFCBANK (₹1559.95) is trading above our estimate of fair value (₹296.28)

Significantly Below Fair Value: HDFCBANK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HDFCBANK is poor value based on its PE Ratio (26.3x) compared to the Indian Banks industry average (18.3x).

PE vs Market: HDFCBANK is poor value based on its PE Ratio (26.3x) compared to the Indian market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: HDFCBANK is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: HDFCBANK is overvalued based on its PB Ratio (3.9x) compared to the IN Banks industry average (1x).


Future Growth

How is HDFC Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDFCBANK's forecast earnings growth (14.5% per year) is above the savings rate (6.8%).

Earnings vs Market: HDFCBANK's earnings (14.5% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: HDFCBANK's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if HDFCBANK's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if HDFCBANK's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HDFCBANK's Return on Equity is forecast to be high in 3 years time


Past Performance

How has HDFC Bank performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HDFCBANK has high quality earnings.

Growing Profit Margin: HDFCBANK's current net profit margins (40.8%) are higher than last year (39.8%).


Past Earnings Growth Analysis

Earnings Trend: HDFCBANK's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: HDFCBANK's earnings growth over the past year (15.2%) is below its 5-year average (18.6% per year).

Earnings vs Industry: HDFCBANK earnings growth over the past year (15.2%) underperformed the Banks industry 26.5%.


Return on Equity

High ROE: HDFCBANK's Return on Equity (15%) is considered low.


Financial Health

How is HDFC Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HDFCBANK's Assets to Equity ratio (8.2x) is low.

Allowance for Bad Loans: HDFCBANK has a sufficient allowance for bad loans (203%).

Low Risk Liabilities: 85% of HDFCBANK's liabilities are made up of primarily low risk sources of funding.

Loan Level: HDFCBANK has an appropriate level of Loans to Assets ratio (66%).

Low Risk Deposits: HDFCBANK's Loans to Deposits ratio (89%) is appropriate.

Level of Bad Loans: HDFCBANK has an appropriate level of bad loans (1.4%).


Dividend

What is HDFC Bank current dividend yield, its reliability and sustainability?

0.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HDFCBANK's dividend (0.42%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: HDFCBANK's dividend (0.42%) is low compared to the top 25% of dividend payers in the Indian market (1.43%).


Stability and Growth of Payments

Stable Dividend: HDFCBANK's dividend payments have been volatile in the past 10 years.

Growing Dividend: HDFCBANK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.9%), HDFCBANK's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Sashi Jagdishan (56 yo)

0.92

Tenure

₹65,833,285

Compensation

Mr. Sashidhar Jagdishan, also known as Sashi, has been Managing Director, Chief Executive Officer at HDFC Bank Ltd. since October 27, 2020. He serves as Director at HDFC Bank Limited since 2021 and served...


CEO Compensation Analysis

Compensation vs Market: Sashi's total compensation ($USD895.35K) is about average for companies of similar size in the Indian market ($USD1.19M).

Compensation vs Earnings: Sashi's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: HDFCBANK's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: HDFCBANK's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HDFCBANK insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

HDFC Bank Limited's employee growth, exchange listings and data sources


Key Information

  • Name: HDFC Bank Limited
  • Ticker: HDFCBANK
  • Exchange: NSEI
  • Founded: 1994
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹8.637t
  • Shares outstanding: 5.54b
  • Website: https://www.hdfcbank.com

Number of Employees


Location

  • HDFC Bank Limited
  • HDFC Bank House
  • Senapati Bapat Marg
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 15:24
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.