HDFC Bank Limited
HDFC Bank Limited Fundamental Analysis
HDFC Bank Limited (HDB) shows moderate financial fundamentals with a PE ratio of 21.48, profit margin of 15.89%, and ROE of 11.83%. The company generates $4505.4B in annual revenue with strong year-over-year growth of 33.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HDB's fundamental strength across five key dimensions:
Efficiency Score
WeakHDB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHDB trades at attractive valuation levels.
Growth Score
ModerateHDB shows steady but slowing expansion.
Financial Health Score
WeakHDB carries high financial risk with limited liquidity.
Profitability Score
WeakHDB struggles to sustain strong margins.
Key Financial Metrics
Is HDB Expensive or Cheap?
P/E Ratio
HDB trades at 21.48 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HDB's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values HDFC Bank Limited at 2.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.58 times EBITDA. This signals the market has high growth expectations.
How Well Does HDB Make Money?
Net Profit Margin
For every $100 in sales, HDFC Bank Limited keeps $15.89 as profit after all expenses.
Operating Margin
Core operations generate 20.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.83 in profit for every $100 of shareholder equity.
ROA
HDFC Bank Limited generates $1.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HDFC Bank Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
HDFC Bank Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
HDB converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How HDB Stacks Against Its Sector Peers
| Metric | HDB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.48 | 18.86 | Worse (Expensive) |
| ROE | 11.83% | 847.00% | Weak |
| Net Margin | 15.89% | 4202.00% | Weak |
| Debt/Equity | 1.09 | 0.91 | Neutral |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 1.55% | -21543.00% (disorted) | Weak |
HDB outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HDFC Bank Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
139.42%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
95.01%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-966.03%
Industry Style: Value, Dividend, Cyclical
Declining