HDFC Bank Ltd fundamental analysis highlights key financial metrics including market capitalization of ₹12,64,580 crore, PE ratio of 18.6, debt-to-equity ratio of 6.81, and return on equity of 17.1% These figures reflect the company’s financial health and current market valuation.
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HDFC Bank Ltd Overview
HDFC Bank Ltd is a leading private sector bank in India, offering a wide range of financial products and services, including retail, corporate and investment banking. Known for its strong customer service and technological innovation, it consistently maintains a robust financial performance.
The company has a market capitalization of ₹12,64,580 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 7.46% below its 52-week high and 21.8% above its 52-week low.
HDFC Bank Financial Results
HDFC Bank Ltd’s financial results for FY 24 reflect continued growth with increased total income and net profit. Despite a slight dip in PPOP margin, the bank has demonstrated resilience with robust revenue and profitability, reinforcing its market position.
Revenue Trend: HDFC Bank’s total income surged to ₹4,07,995 crores in FY 24 from ₹2,04,666 crores in FY 23, showcasing a strong revenue growth trajectory. The increase from FY 22 further highlights the bank’s expanding operational scale and successful revenue strategies.
Equity and Liabilities: The bank’s balance sheet has strengthened with increasing total income and controlled expenses. Despite rising provisions, the solid income growth underscores its robust equity base and effective management of liabilities, ensuring a stable financial foundation.
Profitability: Profit Before Tax (PBT) rose to ₹76,569 crores in FY 24 from ₹61,498 crores in FY 23, indicating strong operational efficiency. Net profit also increased significantly, reflecting the bank’s ability to enhance profitability amidst rising expenses.
Earnings Per Share (EPS): HDFC Bank’s EPS grew to ₹90.42 in FY 24, up from ₹82.64 in FY 23. This increase, coupled with consistent growth over the past years, signals improved shareholder value and effective earnings generation.
Return on Net Worth (RoNW): Although not explicitly provided, the rising net profit and steady capital base suggest a healthy Return on Net Worth. The increasing EPS and net profit imply efficient use of shareholders’ equity to generate substantial returns.
Financial Position: HDFC Bank’s financial position remains strong with substantial net interest income and a healthy Net Interest Margin (NIM) of 4.51% in FY 24. The solid profit margins and prudent expense management reflect robust financial health and stability.
HDFC Bank Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Total Income | 4,07,995 | 2,04,666 | 1,67,695 |
| Total Expenses | 3,06,408 | 1,29,314 | 98,897 |
| Pre-Provisioning Operating Profit | 1,01,587 | 75,352 | 68,799 |
| PPOP Margin (%) | 24.9 | 36.82 | 41.03 |
| Provisions and Contingencies | 25,018 | 13,854 | 17,925 |
| Profit Before Tax | 76,569 | 61,498 | 50,873 |
| Tax % | 14.53 | 24.96 | 25.01 |
| Net Profit | 65,447 | 46,149 | 38,151 |
| EPS | 90.42 | 82.64 | 68.77 |
| Net Interest Income | 1,29,510 | 92,974 | 77,352 |
| NIM (%) | 4.51 | 4.6 | 4.43 |
| Dividend Payout % | 21.57 | 22.99 | 22.54 |
*All values in ₹ Crores
HDFC Bank Company Metrics
HDFC Bank Ltd, with a market cap of ₹12,64,580 crores and a current price of ₹1,660, showcases a strong financial position. The bank’s performance metrics, including a solid P/E ratio and ROE, highlight its robust market standing and profitability.
Market Cap: HDFC Bank’s market capitalization stands at ₹12,64,580 crores, reflecting its substantial market presence and investor confidence. Market cap underscores the bank’s significant influence in the financial sector and its strong market position.
Book Value: The book value per share for HDFC Bank is ₹601, indicating the net asset value of the bank’s equity per share.
Face Value: The face value of HDFC Bank’s stock is ₹1.00 per share. This is essential for determining the base level of shares and is often used for accounting and legal purposes.
Turnover: HDFC Bank’s asset turnover ratio is 0.09, showing how efficiently the bank utilizes its assets to generate revenue. Turnover helps assess the bank’s effectiveness in converting assets into sales.
PE Ratio: The Price-to-Earnings (P/E) ratio for HDFC Bank is 18.6, suggesting that the stock is priced at 18.6 times its earnings.
Debt: HDFC Bank’s total debt is ₹31,07,503 crores, which, when compared to its equity, highlights a high leverage ratio. The debt-to-equity ratio stands at 6.81, indicating substantial leverage relative to shareholders’ equity.
ROE: The Return on Equity (ROE) for HDFC Bank is 17.1%, reflecting the bank’s ability to generate profit from its shareholders’ equity.
EBITDA Margin: The EBITDA margin for HDFC Bank is 33.6%, indicating strong operational efficiency. This margin demonstrates the bank’s ability to maintain profitability before interest, taxes, depreciation, and amortization expenses.
Dividend Yield: HDFC Bank’s dividend yield is 1.17%, representing the annual dividend as a percentage of the stock price.
HDFC Bank Stock Performance
The table presents HDFC Bank’s return on investment (ROI) over different periods. It shows an 8% ROI over five years, with 3% returns for both three years and one year, indicating higher returns over the long term and consistent but lower short-term returns.
| Period | Return on Investment (%) |
| 5 Years | 8% |
| 3 Years | 3% |
| 1 Year | 3% |
Example
If investor A invested ₹1,00,000 five years ago, their ROI of 8% would result in a return of ₹8,000. Therefore, the investment would now be worth ₹1,08,000.
If A had invested ₹1,00,000 three years ago, the 3% ROI would yield ₹3,000 in returns. The total investment value would now be ₹1,03,000.
For a one-year investment of ₹1,00,000, a 3% ROI means a return of ₹3,000. Thus, the total value of the investment would be ₹1,03,000.
HDFC Bank Peer Comparison
HDFC Bank, with the highest market cap of ₹12,64,580 Crores, leads the sector. Despite a flat 1-year return, its strong position and PEG ratio of 0.77 underline its stable growth potential compared to peers.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | HDFC Bank | 1607.8 | 12,64,580 | 0.77 | 10.1 | -0.19 |
| 2 | ICICI Bank | 1161.65 | 817534.91 | 0.3 | 2.71 | 21.06 |
| 3 | Axis Bank | 1153.1 | 356369.28 | 0.34 | 1.21 | 22.68 |
| 4 | Kotak Mah. Bank | 1747.9 | 347394.7 | 0.91 | 4.54 | -2.58 |
| 5 | IndusInd Bank | 1338.1 | 104233.58 | 0.53 | -5.02 | -3.66 |
| 6 | IDBI Bank | 92.89 | 99761.75 | 0.84 | 11.38 | 46.28 |
| 7 | Yes Bank | 23.99 | 75143.09 | -9.36 | 5.92 | 41.53 |
HDFC Bank Shareholding Pattern
The shareholding pattern of HDFC Bank reveals a notable shift in June 2024. Promoters have exited, while Foreign Institutional Investors (FII) increased their stake to 47.17%, surpassing Domestic Institutional Investors (DII) at 35.46% Retail and others hold 17.36%, reflecting a diversified ownership structure.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 0 | 0 | 0 | 0 |
| FII | 47.17 | 47.83 | 52.29 | 52.11 |
| DII | 35.46 | 33.59 | 30.81 | 30.66 |
| Retail & others | 17.36 | 18.56 | 16.9 | 17.22 |
*All values in %
HDFC Bank History
HDFC Bank was established in August 1994 with the Reserve Bank of India’s approval to set up a private sector bank. It began operations in January 1995, marking a significant development in India’s banking sector under liberalization policies.
In 2022, HDFC Bank announced its merger with HDFC Ltd, India’s largest housing finance company. This merger combined HDFC’s leading housing finance expertise with HDFC Bank’s extensive banking network, enhancing its product offerings and expanding its reach across India.
HDFC Bank’s distribution network includes 8,851 branches and 21,163 ATMs across 4,081 cities. It also operates internationally with branches in Hong Kong, Bahrain, and Dubai, and an IFSC Banking Unit in Gujarat, along with representative offices in key global cities.
How To Invest In HDFC Bank Ltd Share?
Investing in HDFC Bank Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for HDFC Bank Ltd shares and place your buy order.
HDFC Bank Limited Fundamental Analysis – FAQs
HDFC Bank Ltd’s fundamental analysis shows key metrics: a market cap of ₹12,64,580 crore, a PE ratio of 18.6, a debt-to-equity ratio of 6.81, and a return on equity of 17.1%, indicating its financial stability and market value.
The market cap of Jio Financial Services Ltd as of August 12, 2024, is approximately ₹12,64,580 crore. This value reflects the company’s strong market position in the Indian banking industry.
HDFC Bank Limited is a leading private sector bank in India, offering a wide range of banking and financial services including retail, corporate, and investment banking. It is known for its extensive branch network and strong market presence.
HDFC Bank is owned by its major shareholder, HDFC Ltd., which holds a substantial stake in the bank. It is a publicly traded company with shares owned by institutional investors, mutual funds, and individual shareholders.
The main shareholders of HDFC Bank typically include institutional investors, mutual funds, and major financial entities. Prominent shareholders often include HDFC Ltd. (which has a significant stake), LIC (Life Insurance Corporation of India) and various foreign institutional investors. For the most current data, checking recent shareholder reports or the bank’s latest filings is recommended.
HDFC Bank operates in the financial services industry, specifically within the banking sector. It offers a range of banking products and services including retail, corporate, and investment banking.
To invest in Jio HDFC Bank Ltd shares, open a brokerage account, complete KYC requirements, and place a buy order for the stock through your broker or trading platform. Monitor the stock’s performance and market conditions for informed investment decisions.
Determining if HDFC Bank is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio and compare them with industry peers and historical values for a balanced assessment.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
