BSE: 500180 | NSE: HDFCBANK | Bank - Private | Large Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that HDFC Bank Ltd is a good quality company.
The key valuation ratios of HDFC Bank Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of HDFC Bank Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'14 | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | TTM | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Interest Income (₹ Cr.) | 19,110 | 23,378 | 29,092 | 35,230 | 42,906 | 51,448 | 60,052 | 69,305 | 77,352 | 92,974 | 1,45,062 | |
| YoY Gr. Rt. % | - | 22.3% | 24.4% | 21.1% | 21.8% | 19.9% | 16.7% | 15.4% | 11.6% | 20.2% | - | |
| Total Income | 50,853 | 60,212 | 74,373 | 86,149 | 1,01,344 | 1,24,108 | 1,47,068 | 1,55,885 | 1,67,695 | 2,04,666 | 4,77,860 | |
| YoY Gr. Rt. % | - | 18.4% | 23.5% | 15.8% | 17.6% | 22.5% | 18.5% | 6% | 7.6% | 22.1% | - | |
| Adj EPS (₹ ) | 18.2 | 21.3 | 25.3 | 29.8 | 35.7 | 41 | 49.7 | 57.7 | 68.6 | 82.4 | 90.5 | |
| YoY Gr. Rt. % | - | 17% | 18.8% | 17.8% | 19.6% | 15% | 21.2% | 16.2% | 18.8% | 20.1% | - | |
| BVPS (₹ ) | 92.1 | 126 | 147 | 179.1 | 211.2 | 282.1 | 321.6 | 380.6 | 445.4 | 516.7 | 626.1 | |
| YoY Gr. Rt. % | - | 36.9% | 16.7% | 21.9% | 17.9% | 33.6% | 14% | 18.3% | 17% | 16% | - | |
| To view Net Profit/Total Funds (%) Colour Rating Guide click here ⓘ | ||||||||||||
| Net Profit/Total Funds (%) | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | 2 | 2 | 1.7 | |
| To view Net NPA to Net Advances (%) Colour Rating Guide click here ⓘ | ||||||||||||
| Net NPA to Net Advances (%) | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | 0.4 | 0.4 | 0.4 | 0.3 | 0.3 | - | |
| To view Capital Adequacy Ratio (%) Colour Rating Guide click here ⓘ | ||||||||||||
| Capital Adequacy Ratio (%) | - | - | - | - | - | - | - | - | - | - | - | |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Net Interest Income | 19.2% | 16.7% | 15.7% | 20.2% | ||||
| Total Income | 16.7% | 15.1% | 11.7% | 22.1% | ||||
| Adj EPS | 18.3% | 18.3% | 18.4% | 20.1% | ||||
| BVPS | 21.1% | 19.6% | 17.1% | 16% | ||||
| Share Price | 14.1% | 6.3% | 4.2% | 14.7% | ||||
| RATIOS \ YEARS | Mar'14 | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest Earned / Total Income | 83.68 | 84.15 | 84.93 | 85.05 | 84.16 | 84.73 | 83.08 | 82.47 | 81.06 | 83.43 | 67.4 | |
| Margins | To view Margins Colour Rating Guide click here ⓘ | |||||||||||
| NIM (%) | 4 | 4.1 | 4 | 4.2 | 4 | 4.2 | 4 | 4 | 3.8 | 3.9 | 3.5 | |
| Performance Ratios | To view Performance Ratios Colour Rating Guide click here ⓘ | |||||||||||
| Return on Equity (%) | 21.7 | 19.9 | 18.7 | 18.4 | 18.4 | 17.1 | 16.5 | 16.5 | 16.7 | 17.2 | 14.5 | |
| Liquidity Ratio | To view Liquidity Ratio Colour Rating Guide click here ⓘ | |||||||||||
| CASA (%) | 44.8 | 44 | 43.3 | 48 | 43.5 | 42.4 | 42.2 | 46.1 | 48.1 | 44.4 | - | |
Total Income has increased 11.65 CAGR in last 3 years
Net Profit has increased 18.38 CAGR in last 3 years
Net NPA to Net Advances has declined versus last 3 years average
Total income growth is not so good in last 4 quarters
Return on Equity has declined versus last 3 years average to 15.80%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 86.2 | 90.5 |
| TTM Sales (₹ Cr.) | 2,89,105 | 3,21,990 |
| BVPS (₹.) ⓘ | 602.2 | 626.1 |
| Reserves (₹ Cr.) ⓘ | 4,59,480 | 4,77,794 |
| P/BV ⓘ | 2.89 | 2.78 |
| PE ⓘ | 20.21 | 19.25 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 1363.45 / 1791.90 |
| All Time Low / High (₹) | 3.23 / 1791.90 |
| Market Cap (₹ Cr.) | 13,31,590 |
| Equity (₹ Cr.) | 764.3 |
| Face Value (₹) | 1 |
| Industry PE ⓘ | 17.6 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income | 60,212 | 74,373 | 86,149 | 1,01,344 | 1,24,108 | 1,47,068 | 1,55,885 | 1,67,695 | 2,04,666 | 4,07,995 |
| Interest Income | 50,666 | 63,162 | 73,271 | 85,288 | 1,05,161 | 1,22,189 | 1,28,552 | 1,35,936 | 1,70,754 | 2,83,649 |
| Other Income ⓘ | 9,546 | 11,212 | 12,878 | 16,057 | 18,947 | 24,879 | 27,333 | 31,759 | 33,912 | 1,24,346 |
| Expenditure | 49,512 | 61,556 | 70,862 | 82,784 | 1,01,662 | 1,19,772 | 1,24,029 | 1,29,545 | 1,58,517 | 3,42,548 |
| Interest Expense | 27,288 | 34,070 | 38,042 | 42,381 | 53,713 | 62,137 | 59,248 | 58,584 | 77,780 | 1,54,139 |
| Operating Expenses | 14,578 | 17,832 | 20,751 | 23,927 | 27,695 | 33,036 | 35,001 | 40,312 | 51,534 | 1,52,269 |
| Provisions | 7,646 | 9,654 | 12,069 | 16,475 | 20,255 | 24,599 | 29,780 | 30,648 | 29,204 | 36,140 |
| Profit Before Tax | 16,080 | 19,511 | 23,366 | 28,464 | 34,318 | 38,195 | 42,796 | 50,873 | 61,498 | 76,569 |
| Taxes | 5,380 | 6,694 | 8,078 | 9,903 | 11,873 | 10,899 | 10,939 | 12,722 | 15,350 | 11,122 |
| Profit After Tax | 10,700 | 12,817 | 15,287 | 18,561 | 22,446 | 27,296 | 31,857 | 38,151 | 46,149 | 65,447 |
| Adjusted EPS (₹) | 21.32 | 25.32 | 29.82 | 35.66 | 41.00 | 49.70 | 57.74 | 68.62 | 82.44 | 84.33 |
| Dividend Payout Ratio (%) | 19% | 19% | 18% | 18% | 18% | 5% | 11% | 23% | 23% | 23% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Share Capital ⓘ | 501 | 506 | 513 | 519 | 545 | 548 | 551 | 555 | 558 | 760 |
| Total Reserves ⓘ | 62,653 | 73,798 | 91,281 | 1,09,080 | 1,53,128 | 1,75,810 | 2,09,259 | 2,46,431 | 2,87,762 | 4,52,983 |
| Minority Interest | 162 | 181 | 291 | 356 | 502 | 577 | 633 | 720 | 860 | 13383 |
| Deposits | 4,50,284 | 5,45,873 | 6,43,134 | 7,88,375 | 9,22,503 | 11,46,207 | 13,33,721 | 15,58,003 | 18,82,663 | 23,76,887 |
| Borrowings ⓘ | 59,478 | 1,03,714 | 98,416 | 1,56,442 | 1,57,733 | 1,86,834 | 1,77,697 | 2,26,967 | 2,56,549 | 7,30,615 |
| Other Liabilities | 34,019 | 38,140 | 58,709 | 48,413 | 58,396 | 70,854 | 77,646 | 90,259 | 1,02,040 | 4,55,566 |
| Total Liabilities ⓘ | 6,07,097 | 7,62,212 | 8,92,344 | 11,03,186 | 12,92,806 | 15,80,830 | 17,99,507 | 21,22,934 | 25,30,433 | 40,30,194 |
Assets | ||||||||||
| Balance with RBI | 27,522 | 30,077 | 37,911 | 1,04,688 | 46,805 | 72,211 | 97,370 | 1,30,031 | 1,17,189 | 1,78,719 |
| Balance with Banks | 9,004 | 8,992 | 11,401 | 18,373 | 35,013 | 15,729 | 23,902 | 25,355 | 79,959 | 50,116 |
| Investments ⓘ | 1,49,454 | 1,93,634 | 2,10,777 | 2,38,461 | 2,89,446 | 3,89,305 | 4,38,823 | 4,49,264 | 5,11,582 | 10,05,682 |
| Advances | 3,83,408 | 4,87,290 | 5,85,481 | 7,00,034 | 8,69,223 | 10,43,671 | 11,85,284 | 14,20,942 | 16,61,949 | 25,65,892 |
| Net Block ⓘ | 3,269 | 3,524 | 3,859 | 3,855 | 4,264 | 4,671 | 5,293 | 6,476 | 8,476 | 12,604 |
| Other Assets | 34,483 | 38,739 | 42,960 | 37,819 | 48,100 | 55,288 | 48,879 | 90,910 | 1,51,322 | 2,17,183 |
| Total Assets ⓘ | 6,07,097 | 7,62,212 | 8,92,344 | 11,03,186 | 12,92,806 | 15,80,830 | 17,99,507 | 21,22,934 | 25,30,433 | 40,30,194 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | -21,281 | -34,435 | 17,282 | 17,214 | -62,872 | -16,869 | 42,476 | -11,960 | 20,814 | 19,069 |
| Cash Flow From Investing Activity ⓘ | -811 | -866 | -1,148 | -852 | -1,598 | -1,617 | -1,681 | -2,216 | -3,424 | 5,314 |
| Cash Flow From Financing Activity ⓘ | 18,694 | 37,815 | -5,893 | 57,378 | 23,131 | 24,394 | -7,321 | 48,124 | 23,941 | -3,983 |
| Net Cash Flow ⓘ | -3,398 | 2,514 | 10,241 | 73,740 | -41,339 | 5,908 | 33,474 | 33,948 | 41,330 | 20,400 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Operational & Financial Ratios |
||||||||||
| EPS (₹) | 43 | 51 | 60 | 71 | 82 | 50 | 58 | 69 | 82 | 84 |
| DPS (₹) | 8 | 10 | 11 | 13 | 15 | 3 | 7 | 16 | 19 | 20 |
| BVPS (₹) | 252 | 294 | 358 | 422 | 564 | 322 | 381 | 445 | 517 | 597 |
Margin Ratios | ||||||||||
| Yield on Advances (%) | 13.2 | 13.0 | 12.5 | 12.2 | 12.1 | 11.7 | 10.9 | 9.6 | 10.3 | 11.1 |
| Yield on Investments (%) | 7.0 | 7.7 | 8.1 | 7.3 | 7.1 | 6.0 | 6.5 | 5.9 | 6.0 | 7.7 |
| Cost of Liabilities (%) | 5.4 | 5.2 | 5.1 | 4.5 | 5.0 | 4.7 | 3.9 | 3.3 | 3.6 | 5.0 |
| NIM (%) | 4.1 | 4.0 | 4.2 | 4.0 | 4.2 | 4.0 | 4.0 | 3.8 | 3.9 | 3.4 |
| Interest Spread (%) | 7.9 | 7.7 | 7.4 | 7.7 | 7.1 | 7.1 | 6.9 | 6.3 | 6.6 | 6.1 |
Performance Ratios | ||||||||||
| ROA (%) | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | 2.0 | 2.0 | 2.0 |
| ROE (%) | 19.9 | 18.7 | 18.4 | 18.4 | 17.1 | 16.5 | 16.5 | 16.7 | 17.2 | 17.6 |
| ROCE (%) | 18.4 | 16.3 | 16.4 | 16.7 | 16.3 | 14.7 | 13.8 | 14.1 | 15.2 | 15.2 |
Efficiency Ratios | ||||||||||
| Cost to Income Ratio (%) | 44.3 | 44.2 | 43.1 | 40.6 | 39.3 | 38.9 | 36.2 | 37.0 | 40.6 | 60.0 |
| Operating Costs to Assets (%) | 2.4 | 2.3 | 2.3 | 2.2 | 2.1 | 2.1 | 1.9 | 1.9 | 2.0 | 3.8 |
Valuation Parameters | ||||||||||
| Price/Book(x) | 4.1 | 3.6 | 4.0 | 4.5 | 4.1 | 2.7 | 3.9 | 3.3 | 3.1 | 2.4 |
HDFC Bank Ltd. is one of India’s leading private banks and was among the first to receive approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994. HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January 1995.
Business area of the Bank
HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. The bank has three key business segments: Wholesale Banking, Treasury and Retail Banking.
Wholesale Banking-: The Bank's target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.
Treasury-: Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
Retail Banking-: The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.
Achievements/ recognition
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MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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