HDFC Bank Ltd.

SECTOR: Bank - Private

924.3
₹ 35.35 (3.98%)
Today's High: 930.1 Today's Low : 890.3
52 Week High: 1304.10 52 Week Low : 738.90
 FinStar
FinStar Indicates the overall health and quality of a stock based on Finology Research.
Ownership Very Stable
High level of belief in company’s potential exhibited by insiders.
ValuationExpensive
The stock is at a premium valuation at this point.
EfficiencyExcellent
The company knows very well the utilization of its assets.
FinancialsVery Stable
The company possesses stable growth history and sound margins.

 Company Essentials

Market Cap

506689.17976872 Cr.

P/E

20.09

P/B

3.1

Face Value

₹1

Div. Yield

0.65%

Book Value (TTM)

298.4224

CASA %

42.3768609033008

Net Interest Income

48243.222 Cr.

Cost To Income %

39.65

Promoter Holding

26.18%

EPS (TTM)

45.9966

CAR %

17.11

ROE

16.50 %

ROCE

16.90 %

Profit Growth

20.54 %

No. of Shares

548.1869304 Cr.

Add your own Ratio
* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

 Price Chart 1w1m3m6m1Yr3Yr5Yr

* Prices are based on daily market changes.

 Valuation Chart 1w1m3m6m1Yr3Yr5Yr

* The chart is based on the standalone earnings of the company.

 Peer Comparison

View Full Peer Comparison
* The Peers list includes companies operating in the same industry and having comparable market cap.

 ROE

1 Year16.5%
3 Year17.44%
5 Year17.99%

 ROA%

1 Year1.83%
3 Year1.82%
5 Year1.84%

 Net NPA%

1 Year0.39%
3 Year0.37%
5 Year0.33%

 NIM

1 Year4.05%
3 Year4.01%
5 Year4%

 CAR %

17.11

 Cost of Liabilities %

4.88

 PEG Ratio

1.35

 Advances Growth %

24.47

 Share Holding Pattern

 Promoter Pledging %

Date Promoter % Pledge %
Dec 2019 26.18 0
Sep 2019 26.21 0
Jun 2019 26.25 0
Mar 2019 26.5 0
Dec 2018 26.54 0
* Figures given above are % of equity capital

 Strengths

  • The bank has been maintaining a healthy ROA of 1.81666666666667% since last 3 years.
  • Company has a good Return on Equity (ROE) track record: 3 Years ROE 17.44%.
  • The company has been consistently maintaining a NIM of 4.00666666666667% since last 3 years.
  • The Bank is prominently managing its Non-Performing Assets, Average NET NPA of last 3 years is 0.373333333333333%.
  • CASA stands at 42.3768609033008% of total deposits.
  • Good Capital Adequacy Ratio of 17.11%.
  • The company has delivered good Profit growth of 19.6796950972864% over the past 3 years.
  • Strong Advances growth of 20.8206075855072% in the last 3 years.

 Limitations

  • Increase in Provision and contingencies of 27.3740579483248% on YoY.
  • The company is trading 4.23 times of its Book Value.

 Quarterly Result (All Figures are in Crores.)

Particulars Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019
Interest Earned 25890.26 26333.25 27391.59 28166.28 29369.72
Other Income 4921.01 4871.21 4970.25 5588.72 6669.28
Interest Expended 13313.51 13243.76 14097.34 14651.24 15196.82
Operating Expenses 6719.34 7117.1 7117.26 7405.68 7896.77
Total Provisions 2211.53 1889.22 2613.66 2700.68 3043.56
Profit Before Tax 8566.89 8954.38 8533.58 8997.4 9901.85
Net Profit 5585.85 5885.12 5568.16 6344.99 7416.48
Net NPA % 0.42 0.39 0.43 0.42 0.48
Gross NPA % 1.38 1.36 1.4 1.38 1.42
Return on Assets % 0.49 0.51 0.46 0.5 0.55
NPM % 21.58 22.35 20.33 22.53 25.25

 Profit & Loss (All Figures are in Crores except Adjusted EPS in Rs.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Interest Earned 48469.9 60221.45 69305.96 80241.36 98972.05
Other Income 8996.35 10751.72 12296.5 15220.3 17625.89
Interest Expended 26074.24 32629.93 36166.73 40146.49 50728.83
Operating Expenses 13987.54 16979.7 19703.34 22690.38 26119.37
Total Provisions 2075.01 2725.61 3593.31 5927.49 7550.08
Profit Before Tax 15329.47 18637.92 22139.07 26697.3 32199.66
Taxes 5113.55 6341.71 7589.43 9210.57 11121.49
Net Profit 10215.92 12296.21 14549.64 17486.73 21078.17
Adjusted EPS 20 24 28 34 39

 Balance Sheet (All Figures are in Crores.)

Particulars Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019
Equity and Liabilities
Share Capital 501.3 505.64 512.51 519.02 544.66
Total Reserves 61508.12 72172.13 88949.84 105775.98 148661.69
Deposits 450795.64 546424.19 643639.66 788770.64 923140.93
Borrowings 45213.56 84968.98 74028.87 123104.97 117085.12
Other Liabilities 32484.46 36725.13 56709.32 45763.72 55108.29
Total Liabilities 590503.07 740796.07 863840.19 1063934.32 1244540.69
Assets
Balance with RBI 27510.45 30058.31 37896.88 104670.47 46763.62
Balance with Banks 8821 8860.53 11055.22 18244.61 34584.02
Investments 151641.75 195836.28 214463.34 242200.24 290587.88
Advances 365495.03 464593.96 554568.2 658333.09 819401.22
Net Block 3121.73 3343.16 3626.74 3607.2 4030
Other Assets 33913.1 38103.84 42229.82 36878.7 49173.95
Total Assets 590503.07 740796.07 863840.19 1063934.32 1244540.69
* Other Non-current Liabilities include Net deferred Liabilities

 Corporate Actions

 Ratings & Research Reports

 Company Presentations

 HDFC Bank Stock Price Analysis and Quick Research Report

Is HDFC Bank an attractive stock to invest in?

 

The Indian Banking sector is rising rapidly due to infrastructure spending, favorable government policy, rising disposable income and increasing consumerism and easier access to credit.

The banking industry is in boom with growing demand across India. But is it the right time to invest in banking stocks is the question to be asked? We can look into more details and dig a little deeper into the analysis of the stock.

Let’s look at how HDFC Bank is performing and if it is the right time to buy the stock of HDFC Bank with detailed analysis.

  •  For Banking companies, The primary source of Income is interest earned on various loans given to individuals and corporates. HDFC Bank has earned Rs 98972.051 Cr. revenue in the latest financial year. It has posted outstanding revenue growth of 18.0102544688111 % in last 3 Years.

  • In terms of advances, the bank reported 24.47 % YOY,  rise . If you see 3 years advance growth, it stands at 20.8206075855072 %.

  • Currently the company has a CASA ratio of 42.3768608091107 %. It’s overall cost of liability stands at 4.87671197935414 %. Also, the total deposits from these accounts stood at Rs 923140.928 Cr.

  • The Bank has a healthy ROA track record. The ROA of HDFC Bank is at 1.82615494403614 %.

  • The Lender is efficiently  managing it’s overall asset portfolio. The Gross NPA and Net NPA stood at 1.36 % and 0.39 % respectively as on the latest financial year.

  • One other important measure of banks’ financial health is provisioning coverage ratio. The YoY change in provision and contingencies is positive at 27.3740579483248 % which means it has increased from the previous year.

  • Non-Interest income or other incomes are very important for banks as it gives a regular source of income for bank with no additional risk. Other income of HDFC Bank decreased and is currently at Rs 17625.8849 Cr.

  • The company has a Good Capital Adequacy Ratio of 17.11 .

  • The best metric which provides insights about bank’s valuation is P/B ratio. Currently HDFC Bank is trading at a P/B of 4.2280636303084 . The historical average PB was 4.168.

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