Is HDFC Bank Stock a Good Investment?
HDFC Bank Investment Advice | HDB |
- Examine HDFC Bank's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research HDFC Bank's leadership team and their track record. Good management can help HDFC Bank navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Banks space and any emerging trends that could impact HDFC Bank's business and its evolving consumer preferences.
- Compare HDFC Bank's performance and market position to its competitors. Analyze how HDFC Bank is positioned in terms of product offerings, innovation, and market share.
- Check if HDFC Bank pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about HDFC Bank's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in HDFC Bank Limited stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if HDFC Bank Limited is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine HDFC Bank Stock
Researching HDFC Bank's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 14.0% of the company shares are owned by institutional investors. The book value of HDFC Bank was currently reported as 632.44. The company has Price/Earnings To Growth (PEG) ratio of 0.97. HDFC Bank Limited last dividend was issued on the 8th of May 2024. The entity had 2:1 split on the 26th of September 2019.
To determine if HDFC Bank is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding HDFC Bank's research are outlined below:
| HDFC Bank Limited has high likelihood to experience some financial distress in the next 2 years | |
| HDFC Bank Limited has a frail financial position based on the latest SEC disclosures | |
| Latest headline from zacks.com: WF vs. HDB Which Stock Is the Better Value Option |
HDFC Bank Quarterly Liabilities And Stockholders Equity |
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HDFC Bank uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in HDFC Bank Limited. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to HDFC Bank's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 15th of April 2024 Upcoming Quarterly Report | View | |
| 15th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 15th of April 2024 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of March 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact HDFC Bank's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises HDFC Bank's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-04-24 | 2017-03-31 | 0.37 | 0.41 | 0.04 | 10 | ||
2020-04-20 | 2020-03-31 | 0.47 | 0.55 | 0.08 | 17 | ||
2022-09-06 | 2022-06-30 | 0.65 | 0.75 | 0.1 | 15 | ||
2021-01-16 | 2020-12-31 | 0.54 | 0.64 | 0.1 | 18 | ||
2020-07-17 | 2020-06-30 | 0.38 | 0.5 | 0.12 | 31 | ||
2024-05-09 | 2024-03-31 | 0.71 | 0.84 | 0.13 | 18 | ||
2019-10-19 | 2019-09-30 | 0.25 | 0.51 | 0.26 | 104 | ||
2024-07-22 | 2024-06-30 | 0.51 | 0.78 | 0.27 | 52 |
Know HDFC Bank's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as HDFC Bank is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading HDFC Bank Limited backward and forwards among themselves. HDFC Bank's institutional investor refers to the entity that pools money to purchase HDFC Bank's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Royal Bank Of Canada | 2024-09-30 | 5.1 M | Amvescap Plc. | 2024-09-30 | 5.1 M | Brown Advisory Holdings Inc | 2024-09-30 | 5.1 M | Wellington Management Company Llp | 2024-09-30 | 5.1 M | Bank Of America Corp | 2024-09-30 | 5 M | Massachusetts Financial Services Company | 2024-09-30 | 4.8 M | Cam Group Holding A/s | 2024-09-30 | 4.6 M | Gqg Partners Llc | 2024-09-30 | 4.5 M | Lazard Asset Management Llc | 2024-09-30 | 4.4 M | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 24.1 M | Harding Loevner L.p. | 2024-09-30 | 16.3 M |
HDFC Bank's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 169.77 B.Market Cap |
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HDFC Bank's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.01 | |
| Return On Capital Employed | 0.06 | 0.06 | |
| Return On Assets | 0.02 | 0.01 | |
| Return On Equity | 0.14 | 0.12 |
Determining HDFC Bank's profitability involves analyzing its financial statements and using various financial metrics to determine if HDFC Bank is a good buy. For example, gross profit margin measures HDFC Bank's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of HDFC Bank's profitability and make more informed investment decisions.
Please note, the presentation of HDFC Bank's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, HDFC Bank's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of HDFC Bank's management manipulating its earnings.
Evaluate HDFC Bank's management efficiency
HDFC Bank Limited has Return on Asset of 0.0171 % which means that on every $100 spent on assets, it made $0.0171 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1153 %, implying that it generated $0.1153 on every 100 dollars invested. HDFC Bank's management efficiency ratios could be used to measure how well HDFC Bank manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Capital Employed is expected to grow to 0.06, whereas Return On Tangible Assets are forecasted to decline to 0.01. At present, HDFC Bank's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 52.2 T, whereas Other Assets are projected to grow to (11.1 T).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 663.07 | 696.22 | |
| Tangible Book Value Per Share | 659.88 | 692.87 | |
| Enterprise Value Over EBITDA | 23.58 | 27.61 | |
| Price Book Value Ratio | 2.28 | 2.17 | |
| Enterprise Value Multiple | 23.58 | 27.61 | |
| Price Fair Value | 2.28 | 2.17 | |
| Enterprise Value | 13.9 T | 14.6 T |
Management at HDFC Bank Limited focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Dividend Yield 0.0104 | Forward Dividend Yield 0.0104 | Forward Dividend Rate 0.7 | Beta 0.833 |
Basic technical analysis of HDFC Stock
As of the 13th of December 2024, HDFC Bank retains the Market Risk Adjusted Performance of 0.2002, semi deviation of 1.38, and Risk Adjusted Performance of 0.063. HDFC Bank technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices.HDFC Bank's Outstanding Corporate Bonds
HDFC Bank issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. HDFC Bank Limited uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most HDFC bonds can be classified according to their maturity, which is the date when HDFC Bank Limited has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand HDFC Bank's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing HDFC Bank's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.063 | |||
| Market Risk Adjusted Performance | 0.2002 | |||
| Mean Deviation | 1.06 | |||
| Semi Deviation | 1.38 | |||
| Downside Deviation | 1.52 | |||
| Coefficient Of Variation | 1250.02 | |||
| Standard Deviation | 1.45 | |||
| Variance | 2.11 | |||
| Information Ratio | 0.0111 | |||
| Jensen Alpha | 0.0559 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.0106 | |||
| Treynor Ratio | 0.1902 | |||
| Maximum Drawdown | 8.01 | |||
| Value At Risk | (2.56) | |||
| Potential Upside | 2.11 | |||
| Downside Variance | 2.31 | |||
| Semi Variance | 1.89 | |||
| Expected Short fall | (1.06) | |||
| Skewness | (0.01) | |||
| Kurtosis | 1.2 |
| Risk Adjusted Performance | 0.063 | |||
| Market Risk Adjusted Performance | 0.2002 | |||
| Mean Deviation | 1.06 | |||
| Semi Deviation | 1.38 | |||
| Downside Deviation | 1.52 | |||
| Coefficient Of Variation | 1250.02 | |||
| Standard Deviation | 1.45 | |||
| Variance | 2.11 | |||
| Information Ratio | 0.0111 | |||
| Jensen Alpha | 0.0559 | |||
| Total Risk Alpha | (0.07) | |||
| Sortino Ratio | 0.0106 | |||
| Treynor Ratio | 0.1902 | |||
| Maximum Drawdown | 8.01 | |||
| Value At Risk | (2.56) | |||
| Potential Upside | 2.11 | |||
| Downside Variance | 2.31 | |||
| Semi Variance | 1.89 | |||
| Expected Short fall | (1.06) | |||
| Skewness | (0.01) | |||
| Kurtosis | 1.2 |
Consider HDFC Bank's intraday indicators
HDFC Bank intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of HDFC Bank stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 19935.8 | |||
| Daily Balance Of Power | 0.5672 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 67.07 | |||
| Day Typical Price | 67.05 | |||
| Price Action Indicator | 0.12 | |||
| Period Momentum Indicator | 0.38 |
HDFC Bank Corporate Filings
6K | 12th of December 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
HDFC Stock media impact
Far too much social signal, news, headlines, and media speculation about HDFC Bank that are available to investors today. That information is available publicly through HDFC media outlets and privately through word of mouth or via HDFC internal channels. However, regardless of the origin, that massive amount of HDFC data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of HDFC Bank news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of HDFC Bank relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to HDFC Bank's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive HDFC Bank alpha.
HDFC Bank Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards HDFC Bank can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
HDFC Bank Limited Historical Investor Sentiment
Investor biases related to HDFC Bank's public news can be used to forecast risks associated with an investment in HDFC. The trend in average sentiment can be used to explain how an investor holding HDFC can time the market purely based on public headlines and social activities around HDFC Bank Limited. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
HDFC Bank's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for HDFC Bank and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average HDFC Bank news discussions. The higher the estimate score, the more favorable the investor's outlook on HDFC Bank.
HDFC Bank Corporate Directors
| Renu Karnad | Non-Executive Non-Independent Director | Profile | |
| Kaizad Bharucha | Head of Corporate Banking, Executive Director and Member of Credit Approval Committee | Profile | |
| Bhavesh Zaveri | Additional Executive Director, Group Head - Operations & Technology | Profile | |
| Sandeep Parekh | Additional Non-Executive Independent Director | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in HDFC Bank Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HDFC Bank. If investors know HDFC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HDFC Bank listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.39 | Earnings Share 3.12 | Revenue Per Share 217.953 | Quarterly Revenue Growth 0.63 | Return On Assets 0.0171 |
The market value of HDFC Bank Limited is measured differently than its book value, which is the value of HDFC that is recorded on the company's balance sheet. Investors also form their own opinion of HDFC Bank's value that differs from its market value or its book value, called intrinsic value, which is HDFC Bank's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HDFC Bank's market value can be influenced by many factors that don't directly affect HDFC Bank's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between HDFC Bank's value and its price, as these two are different measures arrived at by various means. Investors typically determine if HDFC Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HDFC Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.