What do analysts say about HDFC Bank?

HDFC Bank Limited maintains a Market Volatility, or Beta, of 0.9332, suggesting potential diversification benefits within a given portfolio. The returns of HDFC Bank are highly sensitive to market fluctuations. As such, the bank's performance is expected to mirror the market's ups and downs. HDFC Bank Limited provides fifteen distinct technical indicators that can assist in evaluating its performance. HDFC Bank Limited is projected to yield a return of -0.27%. It is advisable to review HDFC Bank's standard deviation, maximum drawdown, and kurtosis, as well as the relationship between the information ratio and potential upside. This will help determine whether HDFC Bank Limited's past performance is likely to be replicated in the future. For more detailed information, please refer to the HDFC Bank Limited dashboard, standard deviation, maximum drawdown, kurtosis, information ratio, and potential upside links provided.

Rigorous look

Investing in HDFC Bank Limited (USA Stocks: HDB) this November could be a strategic move to diversify your portfolio. Despite a loss of 16B in operating income, the bank has shown resilience with a quarterly revenue growth of 31.4%. The bank's revenue per share stands at 129.83, indicating a strong financial position. However, investors should be cautious of the bank's market risk adjusted performance of -0.21 and a Jensen Alpha of -0.17, which suggest potential risks. The bank's 200-day moving average is 66.10, slightly higher than its 50-day moving average of 62.31, indicating a positive long-term trend. With a potential upside of 1.38, HDFC Bank Limited could be a valuable addition to your portfolio.
Published over three months ago
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Reviewed by Michael Smolkin

As we approach November, investors may want to consider amplifying their portfolio with HDFC Bank Limited (USA Stocks: HDB). As a leading player in the Financial Services sector, specifically within the Banks-Regional industry, HDFC Bank has shown promising financial performance. With a profit margin of 40.45% and an operating margin of 54.11%, the bank's efficiency in converting its revenue into actual profit is commendable. Despite an operating loss of 16B, the bank has managed to generate a net income from continuing operations of 496.3B. This is largely due to its impressive net interest income of 914B, which is a result of the bank's core lending operations. This figure is derived from the bank's substantial interest income of 1689.5B. The bank's return on assets stands at 2.07%, indicating that it has been effective in using its assets to generate earnings. The revenue per share is 129.831, which is a good indicator of the bank's profitability on a per-share basis. Analysts have an overall consensus of 'Buy' for HDFC Bank, with 4 strong buy recommendations. The estimated target price is 84.333, suggesting a potential upside of 1.38. However, investors should also consider the market risk adjusted performance of -0.21 and a Treynor Ratio of -0.22, indicating some level of risk associated with the stock. The bank's valuation real value stands at 72.66, which is higher than its possible upside price of 62.13. This indicates that the stock is currently undervalued, providing a good entry point for investors. In conclusion, HDFC Bank's robust financial performance and positive analyst recommendations make it a strong contender for portfolio amplification this November. However, investors should also consider the associated risks before making a decision. Why have analysts downgraded HDFC Bank Limited's consensus from 'Buy or Sell' to 'Buy'? HDFC Bank Limited is set to release its earnings report today, with the forthcoming quarterly report anticipated on October 16, 2023. As the banking sector is generating considerable interest among retail investors, it's pertinent to examine HDFC Bank Limited's prospects in the current economic climate. We will assess why recent price fluctuations in HDFC Bank suggest a potential rebound in November. Analysts appear to have less confidence in the company now than they did a month ago. The current recommendation from five analysts is to 'Buy'.
What is the right price you would pay to acquire a share of HDFC Bank? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with HDFC Bank Limited this year

Annual and quarterly reports issued by HDFC Bank Limited are formal financial statements that are published yearly and quarterly and sent to HDFC stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as HDFC Bank often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

HDFC Bank Gross Profit

HDFC Bank Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing HDFC Bank previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show HDFC Bank Gross Profit growth over the last 10 years. Please check HDFC Bank's gross profit and other fundamental indicators for more details.

Is HDFC Bank valued fairly by the market?

Average experts consensus on the entity has changed. Currently, most analysts have less confidence in the stock as compared to a month ago. The current buy or sell recommendation of 5 analysts is Buy.

Is HDFC a risky opportunity?

Let's check the volatility. HDFC is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind HDFC (USA Stocks:HDB) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of a HDFC Bank stock makes you a part-owner of that company.

HDFC Bank Limited Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering HDFC Bank Limited. The HDFC consensus assessment is calculated by taking the average estimates from all of the analysts covering HDFC Bank
Strong Buy
4
Hold
1
Strong Buy480.0
Buy00.0
Hold120.0
Sell00.0
Strong Sell00.0
If you're looking to diversify your portfolio this November, HDFC Bank Limited (USA Stocks: HDB) may be worth considering. As one of the leading banks in the regional sector, HDFC boasts a substantial net asset of 25755.62B and a net income of 496.26B. Despite a challenging fiscal year, the bank has managed to maintain a positive net interest income of 914B. The bank's shares are primarily owned by institutions, with a significant 13.70% stake. This demonstrates the trust and confidence that major financial institutions have in HDFC's performance. The bank's forward dividend rate stands at 0.7, which may be attractive to income-focused investors. HDFC's Price to Earnings ratio is 27.26X, which is relatively high, indicating that investors are willing to pay a higher price due to expectation of the company's future earnings growth. However, it's worth noting that the bank's risk-adjusted performance is at -0.07, indicating some level of risk. Despite this, HDFC's 52-week high is 70.6399, showing its potential for growth. With a target price of 81.42, there is a potential upside of 1.38. However, investors should also consider the bank's probability of bankruptcy at 60.24%, indicating a moderate level of risk. In conclusion, while HDFC Bank Limited presents some risk, its strong financial performance and potential for growth make it a viable candidate for portfolio diversification this November.

Our HDFC analysis suggests possible reversion in November

Despite the robust fundamentals of HDFC Bank Limited, our analysis indicates potential vulnerability in the near term. The current Risk-Adjusted Performance of -0.07 underscores this concern, suggesting that the stock may not be fully compensating for the risk involved. Consequently, we anticipate a possible price reversion in November. We advise investors to exercise caution and consider this potential downward pressure when making investment decisions. HDFC Bank Limited exhibits very low volatility, with a skewness of -0.61 and a kurtosis of 5.02. However, we recommend investors to further study HDFC Bank Limited's technical indicators to ensure all market information is available and reliable. Understanding different market volatility trends often helps investors to time the market. Proper use of volatility indicators allows traders to measure HDFC Bank's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly impact HDFC Bank's stock price, adding stress to investors as they watch their shares' value plummet.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices fall. Despite the recent slip in HDFC Bank Limited's stock, it still presents a promising investment opportunity. The overall consensus among analysts is a 'Buy' rating, with 4 strong buys and only 1 hold. The analyst target price estimated value stands at $84.33, indicating a potential upside from the current market valuation of $58.2. Even the analyst's lowest estimated target price is $80, well above the current price. However, investors should also consider the possible downside price of $59.52. With the fiscal year ending in March, the bank's performance could influence the stock's direction. Therefore, despite the recent slip, HDFC Bank Limited's stock holds potential for both short-term and long-term investors. .

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Editorial Staff

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