HDFCBANK - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.5

📊 Financial Strength & Profitability

EPS (₹92.3) with solid quarterly PAT (₹16,258 Cr.) — strong earnings capability.

ROE (14.4%) — decent shareholder return; consistent with top-tier private banks.

ROCE (7.51%) — relatively low due to banking’s asset-heavy nature.

Dividend Yield (0.54%) — modest, but reliable income stream.

Debt-to-Equity (6.41) — typical for banking sector with leveraged deposit model.

Core earnings and return ratios reflect a solid foundation for stable growth.

💰 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 22.0 Premium over industry (12.6) — justified by quality and scale

P/B Ratio ~2.96 Reasonable for private sector leader

PEG Ratio 0.96 Fair valuation with expected earnings growth

Intrinsic Value — Estimated range ₹1,950–₹2,050 — near full valuation

Trades close to intrinsic value — not a steal, but priced for durability and scale.

🏦 Business Model & Strategic Edge

Sector: Retail and corporate banking, asset management, and financial services.

Strengths

Extensive branch and digital network — unmatched scale and distribution.

Consistently high CASA ratio, strong NIMs, and diversified loan book.

Efficient cost structure and conservative underwriting practices.

Risks

Quarterly PAT contraction (-1.32%) — cyclical, not alarming.

High leverage inherent to banking — monitored via capital adequacy norms.

Regulatory changes and interest rate dynamics can impact margins.

📈 Technicals & Entry Zone

Current Price: ₹2,022

DMA 50 / DMA 200: ₹1,967 / ₹1,836 — uptrend confirmed

RSI (58.9): Neutral — no overbought signs

MACD (12.0): Bullish crossover — momentum emerging

Volume Surge: Strength in buyer conviction

🛒 Suggested Entry Zone: ₹1,970–₹2,010 Accumulate on dips toward moving averages; ideal for staggered buying in high-conviction portfolios.

🕰️ Long-Term Holding View

HDFCBANK remains a cornerstone investment for low-volatility portfolios seeking financial strength and brand durability

Market cap and earnings quality position it as a defensive and growth hybrid

Best suited for long-term compounding with moderate income generation

Keep tabs on loan growth, asset quality, and NIMs for future rerating triggers

Up for a comparison with ICICI Bank or Kotak Mahindra to round out your banking exposure? I’ll line up a sharp head-to-head analysis 💼📊 Just say the word.

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