NYSE:HDB

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

3.1%

HDB

2.9%

US Banks

0.07%

US Market


1 Year Return

28.2%

HDB

8.6%

US Banks

8.9%

US Market

Return vs Industry: HDB exceeded the US Banks industry which returned 8.6% over the past year.

Return vs Market: HDB exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

HDBIndustryMarket
7 Day3.1%2.9%0.07%
30 Day4.8%3.4%-0.3%
90 Day0.6%2.1%-1.6%
1 Year29.1%28.2%11.8%8.6%11.3%8.9%
3 Year70.1%67.1%54.8%44.1%46.3%36.8%
5 Year137.0%130.1%70.2%51.6%62.1%44.3%

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?

27.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HDB ($58.78) is trading above our estimate of fair value ($23.23)

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


Price To Earnings Ratio

PE vs Industry: HDB is poor value based on its PE Ratio (27.6x) compared to the Banks industry average (12.6x).

PE vs Market: HDB is poor value based on its PE Ratio (27.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HDB is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: HDB is overvalued based on its PB Ratio (4.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is HDFC Bank forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HDB's forecast earnings growth (19.2% per year) is above the savings rate (2.7%).

Earnings vs Market: HDB's earnings (19.2% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: HDB's revenue (15.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: HDB's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HDB's Return on Equity is forecast to be low in 3 years time (18.2%).


Next Steps

Past Performance

How has HDFC Bank performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HDB's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: HDB's earnings growth over the past year (18.9%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: HDB earnings growth over the past year (18.9%) underperformed the Banks industry 29.7%.


Return on Equity

High ROE: HDB's Return on Equity (15.2%) is considered low.


Return on Assets

ROA vs Industry: HDB has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate HDB's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: HDB has a low level of unsold assets or inventory.

Debt Coverage by Assets: HDB's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: HDB's level of assets compared to its equity is low.

Allowance for Bad Loans: HDB has a sufficient allowance for bad loans.

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

Loan Level: HDB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HDB's loans are broadly funded by customer deposits.

Level of Bad Loans: HDB has an appropriate level of bad loans (1.32%)


Next Steps

Dividend

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

0.60%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HDB's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HDB's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: HDB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: HDB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HDB is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of HDFC Bank's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Aditya Puri (68yo)

25.1yrs

Tenure

₹136,704,726

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 45 years of ...


CEO Compensation Analysis

Compensation vs. Market: Aditya's total compensation ($USD1.93M) is below average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

0.8yrs

Average Tenure

54yo

Average Age

Experienced Management: HDB's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.1yrs

Average Tenure

59yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Aditya Puri (68yo)

    MD & Director

    • Tenure: 25.1yrs
    • Compensation: ₹136.70m
  • Kaizad Bharucha (54yo)

    Executive Director

    • Tenure: 5.8yrs
    • Compensation: ₹58.78m
  • Sashi Jagdishan (54yo)

    Head of Finance

    • Tenure: 0.2yrs
    • Compensation: ₹130.89m
  • Santosh Haldankar

    Chief Compliance Officer

    • Tenure: 1.3yrs
    • Compensation: ₹3.98m
  • Neeraj Jha

    Head of Corporate Communications

    • Tenure: 0yrs
  • Ashima Bhat (48yo)

    Group Head of Business Finance

    • Tenure: 0yrs
  • Munish Mittal (50yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Rakesh Singh (49yo)

    Group Head of Investment Banking

    • Tenure: 0yrs
  • Manisha Parkar

    Investor Relation Contact

    • Tenure: 0yrs
  • Srinivasan Vaidyanathan (55yo)

    Chief Financial Officer

    • Tenure: 0.2yrs

Board Members

  • Aditya Puri (68yo)

    MD & Director

    • Tenure: 25.1yrs
    • Compensation: ₹136.70m
  • Keki Mistry (64yo)

    Non-Executive Director

    • Tenure: 26.8yrs
    • Compensation: ₹3.05m
  • Shyamala Gopinath (70yo)

    Part-time Non-Executive Chairperson

    • Tenure: 4.8yrs
    • Compensation: ₹6.50m
  • Sanjiv Sachar (62yo)

    Additional Independent Director

    • Tenure: 1.3yrs
    • Compensation: ₹1.00m
  • Kaizad Bharucha (54yo)

    Executive Director

    • Tenure: 5.8yrs
    • Compensation: ₹58.78m
  • Umesh Sarangi (67yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: ₹3.00m
  • Ranga Ranganath (56yo)

    Additional Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹250.00k
  • Sandeep Parekh (48yo)

    Additional Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹350.00k
  • Malay Patel (41yo)

    Independent Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: ₹3.95m
  • Srikanth Nadhamuni (55yo)

    Non-Executive Director

    • Tenure: 3.1yrs
    • Compensation: ₹2.40m

Company Information

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


Key Information

  • Name: HDFC Bank Limited
  • Ticker: HDB
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹6.780t
  • Listing Market Cap: ₹95.740b
  • Shares outstanding: 5.47b
  • 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

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, and Othe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:35
End of Day Share Price2019/10/22 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.