ScoreWhy is HDFC Bank Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Assets (ROA) of 1.74%
- Healthy long term growth as Net Interest Income (ex other income) has grown by an annual rate of 16.25% and Net profit at 19.13%
- The Bank has a high Capital Adequacy Ratio of 17.36% signifying high buffers against its risk based assets
2
Positive results in Mar 26
- PAT(Q) Highest at Rs 19,221.05 cr.
- GROSS NPA(Q) Lowest at 1.15%
- NII(Q) Highest at Rs 33,081.57 cr
3
With ROA of 1.7, it has a Attractive valuation with a 2.2 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.47%, its profits have risen by 10.9% ; the PEG ratio of the company is 1.6
4
High Institutional Holdings at 84.36%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Below par performance in long term as well as near term
- Along with generating -17.47% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HDFC Bank should be less than 10%
- Overall Portfolio exposure to Private Sector Bank should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Private Sector Bank)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HDFC Bank for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
HDFC Bank
-17.47%
-0.94
18.60%
Sensex
-3.33%
-0.25
13.43%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Net Interest Income Growth (5y)
16.25%
Net Profit Growth (5y)
19.13%
Advance to Deposit
93.65%
Capital Adequacy Ratio (Tier 1)
17.36%
Gross NPA (latest)
1.15%
Gross NPA (avg)
1.20%
Coverage Ratio (avg)
71.51%
Cost to Income (avg)
39.19%
Net Interest Margin (avg)
4.06%
Operating Profit to Assets (avg)
5.45%
ROA (avg)
1.74%
Net Debt to Equity (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Price to Book Value
2.20
PEG Ratio
1.61
Dividend Yield
1.53%
ROE (Latest)
13.37%
ROA (Latest)
1.71%
Net NPA to Book Value
2.00
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
PAT(Q)
Highest at Rs 19,221.05 cr.
GROSS NPA(Q)
Lowest at 1.15%
NII(Q)
Highest at Rs 33,081.57 cr
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 200,679.37 cr
PBDIT(Q)
Highest at Rs 14,604.04 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 19.06%
PBT LESS OI(Q)
Highest at Rs 11,994.47 cr.
EPS(Q)
Highest at Rs 12.49
NET NPA(Q)
Lowest at 0.38%
-3What is not working for the Company
CREDIT DEPOSIT RATIO(HY)
Lowest at 94.59%
INTEREST EARNED(Q)
Lowest at Rs 76,610.02 cr
NON-OPERATING INCOME(Q)
is 52.39 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for HDFC Bank
Profit After Tax (PAT) - Quarterly
Highest at Rs 19,221.05 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Gross NPA - Quarterly
Lowest at 1.15%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Gross NPA (%)
Net Interest Income (Quarterly)
Highest at Rs 33,081.57 cr
in the last five quartersMOJO Watch
The bank's income from core business is increasing
Net Interest Income (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 14,604.04 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 19.06%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 11,994.47 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 12.49
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Net NPA - Quarterly
Lowest at 0.38%
in the last five quartersMOJO Watch
Proportion of stressed loans given by the bank are falling
Net NPA (%)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 200,679.37 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for HDFC Bank
Interest Earned - Quarterly
Lowest at Rs 76,610.02 cr
in the last five quartersMOJO Watch
Near term sales trend is negative
Interest Earned (Rs Cr)
Non Operating Income - Quarterly
is 52.39 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Credit Deposit Ratio - Half Yearly
Lowest at 94.59%
in the last four periodsMOJO Watch
Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets
Credit Deposit Ratio (%)
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