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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500180 | NSE: HDFCBANK

Fundamental Analysis of HDFC Bank Ltd

Basic Stock Data

Last Updated: July 24, 2024, 11:40 pm

Market Cap 12,20,381 Cr.
Current Price 1,604
High / Low1,794/1,363
Stock P/E17.9
Book Value 601
Dividend Yield1.22 %
ROCE7.67 %
ROE17.1 %
Face Value 1.00
PEG Ratio1.60

Data Source: screener.in

Competitors of HDFC Bank Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Yes Bank Ltd 78,026 Cr. 24.932.8/14.153.6 13.80.00 %6.29 %3.23 % 2.00
Ujjivan Small Finance Bank Ltd 8,596 Cr. 44.563.0/40.06.70 28.73.37 %11.1 %26.7 % 10.0
South Indian Bank Ltd 7,113 Cr. 27.236.9/17.96.12 25.51.10 %6.47 %16.0 % 1.00
Karnataka Bank Ltd 8,599 Cr. 228287/1926.44 2632.20 %6.76 %15.9 % 10.0
Jammu & Kashmir Bank Ltd 11,782 Cr. 107152/65.46.65 95.92.01 %6.23 %17.9 % 1.00
Industry Average64,413.88 Cr309.8314.23164.960.87%7.48%14.42%6.56

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Revenue32,60732,25433,52034,58835,57437,27440,93045,00247,54851,16875,03978,00879,434
Interest14,08314,21814,41514,72415,22716,35818,31120,50522,60625,95541,25043,24243,692
Expenses15,56114,07314,69814,42315,04415,02115,91516,68217,77018,47045,34950,53062,938
Financing Profit2,9633,9624,4085,4415,3045,8956,7047,8157,1726,744-11,560-15,764-27,196
Financing Margin %9%12%13%16%15%16%16%17%15%13%-15%-20%-34%
Other Income8,3036,6807,9168,7778,3866,9298,2529,1219,6109,85332,52837,00744,958
Depreciation0000000000000
Profit before tax11,26610,64212,32414,21813,69012,82314,95616,93616,78316,59720,96721,24317,761
Tax %25%25%26%25%23%25%25%25%25%25%17%17%-1%
Net Profit8,4447,9409,12010,61610,4759,61711,16312,73512,63412,40317,31217,71818,013
EPS in Rs15.3014.3316.4319.1118.8317.2519.9722.7722.5722.1222.1722.7323.20
Gross NPA %
Net NPA %

Last Updated: July 11, 2024, 9:08 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 2:21 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Revenue35,86142,55550,66663,16273,27185,288105,161122,189128,552135,936170,754283,649
Interest19,69523,44527,28834,07038,04242,38153,71362,13759,24858,58477,780154,139
Expenses12,63113,50816,16420,05523,85629,53234,85645,45952,45756,55763,042177,288
Financing Profit3,5345,6027,2149,03711,37413,37416,59214,59316,84820,79529,932-47,777
Financing Margin %10%13%14%14%16%16%16%12%13%15%18%-17%
Other Income7,1338,2989,54611,21212,90516,05718,94724,87927,33331,75933,912124,346
Depreciation6636896807388869671,2211,2771,3851,6812,3450
Profit before tax10,00413,21116,07919,51123,39328,46434,31838,19542,79650,87361,49876,569
Tax %31%34%33%34%35%35%35%29%26%25%25%15%
Net Profit6,9038,76810,70312,82115,31718,56122,44627,29631,85738,15146,14965,446
EPS in Rs14.4418.2221.3225.3229.8135.6641.0049.7057.7468.6282.4484.33
Dividend Payout %19%19%19%19%18%18%18%5%11%23%23%23%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)27.02%22.07%19.79%19.47%21.18%20.93%21.61%16.71%19.76%20.96%41.81%
Change in YoY Net Profit Growth (%)0.00%-4.95%-2.28%-0.32%1.71%-0.25%0.68%-4.90%3.05%1.21%20.85%

Growth

Compounded Sales Growth
10 Years:21%
5 Years:22%
3 Years:30%
TTM:70%
Compounded Profit Growth
10 Years:22%
5 Years:23%
3 Years:26%
TTM:40%
Stock Price CAGR
10 Years:15%
5 Years:7%
3 Years:4%
1 Year:-4%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:17%
Last Year:17%

Last Updated: July 25, 2024, 4:18 am

Balance Sheet

Last Updated: July 10, 2024, 2:21 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital476480501506513519545548551555558
Reserves36,16743,68762,65373,79891,281109,080153,128175,810209,259246,772288,880
Borrowings335,588416,677509,762649,587741,550944,8171,080,2351,333,0411,511,4181,784,9702,139,212
Other Liabilities35,49242,77634,18138,32159,00048,77058,89871,43078,27990,639101,783
Total Liabilities407,723503,620607,097762,212892,3441,103,1861,292,8061,580,8301,799,5072,122,9342,530,432
Fixed Assets2,7733,0263,2253,6674,0004,0084,3694,7765,2486,4328,431
CWIP00000000000
Investments110,960119,571149,454193,634210,777238,461289,446389,305438,823449,264511,582
Other Assets293,989381,023454,417564,912677,567860,717998,9911,186,7501,355,4351,667,2382,010,419
Total Assets407,723503,620607,097762,212892,3441,103,1861,292,8061,580,8301,799,5072,122,9342,530,432

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -5,8474,211-21,281-34,43517,28217,214-62,872-16,86942,476-11,96020,81419,069
Cash from Investing Activity -902-1,099-800-837-1,146-842-1,503-1,403-1,823-2,051-2,99216,600
Cash from Financing Activity 13,1059,27018,69437,815-5,89357,37823,13124,394-7,32148,12423,941-3,983
Net Cash Flow6,35612,382-3,3872,54210,24273,750-41,2446,12233,33234,11341,76231,687

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-323.00-403.00-493.00-629.00-718.00-915.0033.0044.0051.0055.0061.00177.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
ROE %21%22%20%19%18%18%17%16%16%17%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters25.83%25.80%25.78%25.73%25.64%25.60%25.59%25.52%0.00%0.00%0.00%0.00%
FIIs38.23%37.47%35.62%32.31%32.14%32.10%32.24%33.38%52.13%52.31%47.83%47.17%
DIIs22.53%22.97%24.55%27.11%27.53%28.13%28.09%26.75%30.39%30.54%33.33%35.20%
Government0.16%0.16%0.16%0.16%0.16%0.16%0.16%0.16%0.17%0.17%0.18%0.18%
Public13.25%13.60%13.89%14.69%14.51%13.99%13.91%14.19%17.30%16.98%18.64%17.44%
No. of Shareholders15,98,81318,88,27621,51,63026,60,57725,20,91123,03,29122,90,09223,45,67230,58,65930,18,24741,21,81536,64,325

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF135,727,88211.482063225,186,0592024-07-24438.9%
SBI S&P BSE Sensex ETF97,829,29313.5214841.1925,186,0592024-07-24288.43%
UTI Nifty 50 ETF38,801,86511.485898.2725,186,0592024-07-2454.06%
UTI S&P BSE Sensex ETF35,080,55113.525321.925,186,0592024-07-2439.29%
Parag Parikh Flexi Cap Fund33,904,4708.065153.8225,186,0592024-07-2434.62%
HDFC Balanced Advantage Fund - Regular Plan32,745,2515.964977.6125,186,0592024-07-2430.01%
HDFC Flexi Cap Fund - Regular Plan32,700,0009.44970.7325,186,0592024-07-2429.83%
ICICI Prudential Value Discovery Fund25,186,0598.973828.5325,186,0592024-07-240%
SBI Blue Chip Fund25,000,0008.373800.2525,186,0592024-07-24-0.74%
Mirae Asset Large Cap Fund24,520,3259.793727.3325,186,0592024-07-24-2.64%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
Face Value1.001.001.001.001.00
Basic EPS (Rs.)90.4282.6468.7757.8849.84
Diluted EPS (Rs.)90.0182.2768.3157.6149.46
Cash EPS (Rs.)90.2286.9171.8360.3052.11
Book Value[Excl.RevalReserv]/Share (Rs.)600.77518.73445.99380.59321.63
Book Value[Incl.RevalReserv]/Share (Rs.)600.77518.73445.99380.59321.63
Operating Revenue / Share (Rs.)373.37306.03245.13233.19222.84
Net Profit / Share (Rs.)86.1582.7168.8057.7949.78
Net Profit After MI / Share (Rs.)84.3382.4468.6257.7449.70
Net Profit Margin (%)23.0727.0228.0624.7822.33
Net Profit After MI And SOA Nargin (%)22.5826.9327.9924.7622.30
Operating Profit Margin (%)-20.767.164.703.511.97
Return On Assets (%)1.581.811.791.761.72
Return On Equity / Networth (%)14.0315.8915.3815.1715.45
Net Interest Margin (X)3.213.673.643.853.79
Cost To Income (%)59.9840.6142.3141.5539.18
Interest Income / Total Assets (%)7.036.746.407.147.72
Non-Interest Income / Total Assets (%)3.081.341.491.511.57
Operating Profit / Total Assets (%)-1.460.480.300.250.15
Operating Expenses / Total Assets (%)3.772.031.891.942.08
Interest Expenses / Total Assets (%)3.823.072.753.293.93
Enterprise Value (Rs.Cr.)4028967.132920214.842470099.592237407.931733489.71
EV Per Net Sales (X)14.2017.1018.1717.4014.19
Price To Book Value (X)2.413.103.303.922.68
Price To Sales (X)3.885.266.006.403.87
Retention Ratios (%)86.88100.00100.00100.0093.95
Earnings Yield (X)0.050.050.040.030.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 1,862.04

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 16.09% compared to the current price 1604

Intrinsic Value: 2,069.74

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 29.04% compared to the current price 1604

Last 5 Year EPS CAGR: 11.15%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in HDFC Bank Ltd:
    1. Net Profit Margin: 23.07%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: N/A% (Industry Average ROCE: 7.48%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ✓ ROE%: N/A% (Industry Average ROE: 14.42%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): N/A
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: N/A
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 17.9 (Industry average Stock P/E: 14.23)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✗ Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

HDFC Bank Ltd. is a Public Limited Listed company incorporated on 30/08/1994 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L65920MH1994PLC080618 and registration number is 080618. Currently Company is involved in the business activities of Monetary intermediation of commercial banks, saving banks. postal savings bank and discount houses. Company’s Total Operating Revenue is Rs. 127753.12 Cr. and Equity Capital is Rs. 554.55 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance - Banks - Private SectorHDFC Bank House, Mumbai Maharashtra 400013shareholder.grievances@hdfcbank.com
http://www.hdfcbank.com
Management
NamePosition Held
Mr. Atanu ChakrabortyPart Time Chairman & Independent Director
Mr. Sashidhar JagdishanManaging Director & CEO
Mr. Kaizad BharuchaDeputy Managing Director
Mr. Keki MistryNon Exe.Non Ind.Director
Mrs. Renu KarnadNon Exe.Non Ind.Director
Mr. Sanjiv SacharIndependent Director
Mr. M D RanganathIndependent Director
Mr. Umesh Chandra SarangiIndependent Director
Mr. Sandeep ParekhIndependent Director
Ms. Sunita MaheshwariIndependent Director
Mrs. Lily VaderaIndependent Director
Mr. Bhavesh ZaveriExecutive Director

FAQ

What is the latest fair value of HDFC Bank Ltd?

The latest fair value of HDFC Bank Ltd is ₹1862.04.

What is the Market Cap of HDFC Bank Ltd?

The Market Cap of HDFC Bank Ltd is 12,20,381 Cr..

What is the current Stock Price of HDFC Bank Ltd as on 25 July 2024?

The current stock price of HDFC Bank Ltd as on 25 July 2024 is 1,604.

What is the High / Low of HDFC Bank Ltd stocks in FY 2024?

In FY 2024, the High / Low of HDFC Bank Ltd stocks is 1,794/1,363.

What is the Stock P/E of HDFC Bank Ltd?

The Stock P/E of HDFC Bank Ltd is 17.9.

What is the Book Value of HDFC Bank Ltd?

The Book Value of HDFC Bank Ltd is 601.

What is the Dividend Yield of HDFC Bank Ltd?

The Dividend Yield of HDFC Bank Ltd is 1.22 %.

What is the ROCE of HDFC Bank Ltd?

The ROCE of HDFC Bank Ltd is 7.67 %.

What is the ROE of HDFC Bank Ltd?

The ROE of HDFC Bank Ltd is 17.1 %.

What is the Face Value of HDFC Bank Ltd?

The Face Value of HDFC Bank Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in HDFC Bank Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE