⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HDFCBANK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | HDFCBANK | Market Cap | 12,96,700 Cr. | Current Price | 843 ₹ | High / Low | 1,020 ₹ |
| Stock P/E | 17.8 | Book Value | 350 ₹ | Dividend Yield | 1.30 % | ROCE | 7.35 % |
| ROE | 14.3 % | Face Value | 1.00 ₹ | DMA 50 | 904 ₹ | DMA 200 | 940 ₹ |
| Chg in FII Hold | -0.71 % | Chg in DII Hold | 0.93 % | PAT Qtr | 18,654 Cr. | PAT Prev Qtr | 18,641 Cr. |
| RSI | 36.2 | MACD | -24.4 | Volume | 2,46,08,133 | Avg Vol 1Wk | 4,19,21,684 |
| Low price | 812 ₹ | High price | 1,020 ₹ | PEG Ratio | 0.80 | Debt to equity | 6.28 |
| 52w Index | 14.8 % | Qtr Profit Var | 11.5 % | EPS | 47.6 ₹ | Industry PE | 14.8 |
📊 Core Financials
- Quarterly PAT stable at ₹18,654 Cr. vs ₹18,641 Cr. → flat sequential growth but ~11.5% YoY improvement.
- ROE: 14.3% → moderate profitability for a large bank.
- ROCE: 7.35% → relatively low due to capital-intensive nature of banking.
- Debt-to-equity: 6.28 → typical for banks, reflecting leverage-driven business model.
- Dividend Yield: 1.30% → modest cash return to shareholders.
💹 Valuation Indicators
- P/E Ratio: 17.8 vs Industry PE 14.8 → slightly overvalued compared to peers.
- P/B Ratio: 2.41 (Current Price ₹843 / Book Value ₹350) → fair for banking sector.
- PEG Ratio: 0.80 → attractive, suggests earnings growth supports valuation.
- Intrinsic Value: Current price near fair value, limited downside risk.
🏢 Business Model & Competitive Advantage
- India’s largest private sector bank with diversified retail, corporate, and treasury operations.
- Strong distribution network, digital banking leadership, and trusted brand.
- Competitive advantage: Scale, customer base, and consistent profitability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹812–₹840 (close to 52-week low, RSI at 36.2 indicates oversold).
- Long-Term Holding: Suitable for investors seeking stability and steady growth in India’s banking sector.
✅ Positive
- Strong market leadership and brand trust.
- Consistent profitability with EPS at ₹47.6.
- DII holdings increased (+0.93%), showing domestic institutional confidence.
⚠️ Limitation
- ROCE relatively low compared to non-financial sectors.
- Valuation slightly above industry average.
- FII holding decreased (-0.71%), showing reduced foreign investor interest.
📉 Company Negative News
- Stock trading below 50 DMA (₹904) and 200 DMA (₹940), indicating bearish momentum.
- MACD at -24.4 signals weak technical trend.
📈 Company Positive News
- Quarterly profit growth of ~11.5% YoY shows resilience.
- Strong retail and digital banking expansion continues to support earnings.
🌐 Industry
- Banking industry PE at 14.8, lower than HDFCBANK’s 17.8, showing sector-wide undervaluation compared to HDFCBANK.
- Industry growth driven by credit expansion, digital adoption, and rising retail participation.
🔎 Conclusion
- HDFCBANK remains fundamentally strong with stable earnings and a dominant market position.
- Valuation is slightly stretched, but PEG ratio indicates growth support.
- Best strategy: Accumulate near ₹812–₹840 and hold long-term for steady compounding in India’s banking sector.