NSEI:HDFCBANK

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has HDFC Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HDFCBANK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

HDFCBANK

1.7%

IN Banks

-0.6%

IN Market


1 Year Return

-2.1%

HDFCBANK

-20.6%

IN Banks

2.2%

IN Market

Return vs Industry: HDFCBANK exceeded the Indian Banks industry which returned -22.7% over the past year.

Return vs Market: HDFCBANK underperformed the Indian Market which returned 1.1% over the past year.


Shareholder returns

HDFCBANKIndustryMarket
7 Day-0.8%1.7%-0.6%
30 Day13.8%8.2%0.2%
90 Day5.7%2.7%6.7%
1 Year-2.1%-2.1%-20.6%-20.6%3.9%2.2%
3 Year31.1%29.2%-36.1%-36.8%2.6%-2.4%
5 Year125.1%118.5%-12.9%-14.8%41.3%30.8%

Price Volatility Vs. Market

How volatile is HDFC Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

22.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HDFCBANK (₹1203.55) is trading above our estimate of fair value (₹267.94)

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 (22.3x) compared to the IN Banks industry average (15.7x).

PE vs Market: HDFCBANK is poor value based on its PE Ratio (22.3x) compared to the Indian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: HDFCBANK is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: HDFCBANK is overvalued based on its PB Ratio (3.4x) compared to the IN Banks industry average (0.7x).


Next Steps

Future Growth

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

18.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDFCBANK's forecast earnings growth (18.6% per year) is above the savings rate (7.2%).

Earnings vs Market: HDFCBANK's earnings (18.6% per year) are forecast to grow slower than the Indian market (25.4% 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


Next Steps

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 a high level of non-cash earnings.

Growing Profit Margin: HDFCBANK's current net profit margins (40.5%) are higher than last year (36%).


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 (23.2%) exceeds its 5-year average (18.6% per year).

Earnings vs Industry: HDFCBANK earnings growth over the past year (23.2%) exceeded the Banks industry -0.3%.


Return on Equity

High ROE: HDFCBANK's Return on Equity (15.4%) is considered low.


Next Steps

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 (8.6x) is low.

Allowance for Bad Loans: HDFCBANK has a sufficient allowance for bad loans (105%).

Low Risk Liabilities: 84% 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%).


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HDFCBANK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HDFCBANK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HDFCBANK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HDFCBANK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HDFCBANK is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HDFCBANK's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Aditya Puri (69 yo)

26.08yrs

Tenure

₹189,217,065

Compensation

Mr. Aditya Puri has been the Managing Director and a Director of HDFC Bank Limited since September 1994. Mr. Puri was the Chief Executive Officer of Citibank, Malaysia from 1992 to 1994. He has many of exp ...


CEO Compensation Analysis

Compensation vs Market: Aditya's total compensation ($USD2.58M) is above average for companies of similar size in the Indian market ($USD1.42M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Aditya Puri
MD & Director26.08yrs₹189.22m0.052%
₹ 3.4b
Srinivasan Vaidyanathan
Chief Financial Officer1.17yrs₹27.01m0%
₹ 0
Sashidhar Jagdishan
Head of Financeno data₹29.18m0.029%
₹ 1.9b
Santosh Haldankar
Chief Compliance Officer2.33yrs₹5.78m0.000020%
₹ 1.3m
Kaizad Bharucha
Executive Director6.83yrs₹86.42m0.039%
₹ 2.6b
Bhavesh Zaveri
Head of Operationsno datano data0.0084%
₹ 555.1m
Rakesh Singh
Group Head of Investment Bankingno datano data0%
₹ 0
Manisha Parkar
Investor Relation Contactno datano datano data
Neeraj Jha
Head of Corporate Communicationno datano data0.00075%
₹ 49.5m
Parag Rao
Group Head of Paymentsno datano data0.00053%
₹ 35.0m
Abhay Aima
Group Head of Equitiesno datano data0%
₹ 0
Jimmy Tata
Group Head & Chief Risk Officerno datano data0.033%
₹ 2.2b

2.3yrs

Average Tenure

55yo

Average Age

Experienced Management: HDFCBANK's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aditya Puri
MD & Director26.08yrs₹189.22m0.052%
₹ 3.4b
Kaizad Bharucha
Executive Director6.83yrs₹86.42m0.039%
₹ 2.6b
Renu Karnad
Additional Non-Executive Director0.58yr₹150.00k0.011%
₹ 714.2m
Shyamala Gopinath
Independent Part-Time Non-Executive Chairperson5.75yrs₹6.40mno data
Sanjiv Sachar
Independent Non-Executive Director2.25yrs₹3.30mno data
Umesh Sarangi
Independent Non-Executive Director4.58yrs₹3.10mno data
Mavinakere Ranganath
Independent Non-Executive Director1.75yrs₹3.65mno data
Sandeep Parekh
Independent Non-Executive Director1.75yrs₹3.10mno data
Malay Patel
Independent Non-Executive Director5.58yrs₹4.35mno data
Srikanth Nadhamuni
Non-Executive Director4.08yrs₹3.75mno data
D. M. A. Dasanayaka
Non Executive & Non Independent Director0.17yrno datano data

4.1yrs

Average Tenure

60yo

Average Age

Experienced Board: HDFCBANK's board of directors are considered experienced (4.1 years average tenure).


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 company bio, 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: ₹6.601t
  • Shares outstanding: 5.50b
  • Website: https://www.hdfcbank.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500180BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1995
HDFCBANKNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1995
HDBNYSE (New York Stock Exchange)SPON ADS EACH REP 3 ORD SHSUSUSDJul 2001
HDFADB (Deutsche Boerse AG)SPON ADS EACH REP 3 ORD SHSDEEURJul 2001
HDB NBMV (Bolsa Mexicana de Valores)SPON ADS EACH REP 3 ORD SHSMXMXNJul 2001
600180BSE (Mumbai Stock Exchange)INR2(FOREIGN PREMIUM)ININRJun 2015

Biography

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 Ba ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 12:46
End of Day Share Price2020/10/19 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.