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.


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

1.7%

HDFCBANK

2.6%

IN Banks

1.3%

IN Market


1 Year Return

-13.1%

HDFCBANK

-32.7%

IN Banks

-10.7%

IN Market

Return vs Industry: HDFCBANK exceeded the Indian Banks industry which returned -32.7% over the past year.

Return vs Market: HDFCBANK underperformed the Indian Market which returned -10.7% over the past year.


Shareholder returns

HDFCBANKIndustryMarket
7 Day1.7%2.6%1.3%
30 Day5.1%9.9%7.0%
90 Day32.0%28.9%29.4%
1 Year-12.9%-13.1%-32.6%-32.7%-9.0%-10.7%
3 Year30.8%28.8%-30.4%-31.1%0.08%-5.2%
5 Year102.8%96.9%-14.5%-16.4%23.3%12.0%

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?

21.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HDFCBANK (₹1073.95) is trading above our estimate of fair value (₹182.01)

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 (21.5x) compared to the Banks industry average (16.1x).

PE vs Market: HDFCBANK is poor value based on its PE Ratio (21.5x) compared to the Indian market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: HDFCBANK is poor value based on its PEG Ratio (7.5x)


Price to Book Ratio

PB vs Industry: HDFCBANK is overvalued based on its PB Ratio (3.3x) 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 2 analysts?

2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDFCBANK's forecast earnings growth (2.9% per year) is below the savings rate (7.2%).

Earnings vs Market: HDFCBANK's earnings (2.9% per year) are forecast to grow slower than the Indian market (18.9% 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: HDFCBANK's Return on Equity is forecast to be low in 3 years time (15.9%).


Next Steps

Past Performance

How has HDFC Bank performed over the past 5 years?

18.5%

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 (38.3%) are higher than last year (36%).


Past Earnings Growth Analysis

Earnings Trend: HDFCBANK's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: HDFCBANK's earnings growth over the past year (22%) exceeds its 5-year average (18.5% per year).

Earnings vs Industry: HDFCBANK earnings growth over the past year (22%) exceeded the Banks industry 19.9%.


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 (8.9x) is low.

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

Low Risk Liabilities: 82% 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 (91%) is appropriate.

Level of Bad Loans: HDFCBANK has an appropriate level of bad loans (1.2%).


Next Steps

Dividend

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

1.21%

Forecast Dividend Yield


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?

0.9yrs

Average management tenure


CEO

Aditya Puri (69yo)

25.83yrs

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 ($USD2.51M) is above average for companies of similar size in the Indian market ($USD782.26K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Aditya Puri
MD & Director25.83yrs₹189.22m0.14% 8.5b
Srinivasan Vaidyanathan
Chief Financial Officer0.92yr₹27.01mno data
Santosh Haldankar
Chief Compliance Officerno data₹5.78m0.000010% 598.1k
Kaizad Bharucha
Executive Director6.58yrs₹86.42m0.037% 2.2b
Sashidhar Jagdishan
Group Head & Strategic Change Agent0.92yr₹29.18m0.023% 1.4b
Bhavesh Zaveri
Group Head of Operations & Technologyno datano data0.0095% 570.0m
Rakesh Singh
Group Head of Investment Bankingno datano datano data
Munish Mittal
Group Head & Chief Information Officerno datano data0.0010% 61.6m
Ashima Bhat
Group Head of Financeno datano data0.022% 1.3b
Manisha Parkar
Investor Relation Contactno datano datano data

0.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: HDFCBANK's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Aditya Puri
MD & Director25.83yrs₹189.22m0.14% 8.5b
Kaizad Bharucha
Executive Director6.58yrs₹86.42m0.037% 2.2b
Renu Karnad
Additional Non-Executive Director0.33yr₹150.00k0.011% 648.4m
Shyamala Gopinath
Independent Part-Time Non-Executive Chairperson5.5yrs₹6.40mno data
Sanjiv Sachar
Independent Non-Executive Director2yrs₹3.30mno data
Umesh Sarangi
Independent Non-Executive Director4.33yrs₹3.10mno data
Mavinakere Ranganath
Independent Non-Executive Director1.5yrs₹3.65mno data
Sandeep Parekh
Independent Non-Executive Director1.5yrs₹3.10mno data
Malay Patel
Independent Non-Executive Director5.33yrs₹4.35mno data
Srikanth Nadhamuni
Non-Executive Director3.83yrs₹3.75mno 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: ₹5.981t
  • Shares outstanding: 5.49b
  • 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)SPONSORED ADSUSUSDJul 2001
HDFADB (Deutsche Boerse AG)SPONSORED ADSDEEURJul 2001
HDB NBMV (Bolsa Mexicana de Valores)SPONSORED ADSMXMXNJul 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 Banking Business, and Unallocated segments. The company accepts savings, salary, current, and Demat accounts; fixed and recurring deposits; and safe deposit lockers, and rural and pension accounts, as well as offshore accounts and deposits, overdrafts against fixed deposits and salaries, and sweep-in facilities. It also provides personal, home, car, two wheeler, three wheeler, business, educational, gold, rural, and term loans; loans against properties, assets, and securities; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, term and professional loans, healthcare/medical equipment and commercial vehicle finance, and dealer finance. In addition, the company offers credit, debit, prepaid, and forex cards; payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, loan syndication, and merchant and cash management services; and insurance and investment products. Further, it provides short term finance, bill discounting, structured finance, export credit, documents collection, Internet and wholesale banking, mobile banking, real time gross settlement, channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. As of March 31, 2020, it had 5,416 branches and 13,640 automated teller machines in 2,803 cities/towns. HDFC Bank Limited was founded in 1994 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/03 12:35
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
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.