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HDFC BANK LTD-ADR (HDB) Stock Fundamental Analysis

NYSE:HDB - New York Stock Exchange, Inc. - US40415F1012 - ADR - Currency: USD

71.66  -0.73 (-1.01%)

After market: 71.5 -0.16 (-0.22%)

Fundamental Rating

3

Overall HDB gets a fundamental rating of 3 out of 10. We evaluated HDB against 395 industry peers in the Banks industry. While HDB is still in line with the averages on profitability rating, there are concerns on its financial health. HDB shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year HDB was profitable.
In the past year HDB had a positive cash flow from operations.
HDB had positive earnings in each of the past 5 years.
HDB had a positive operating cash flow in 4 of the past 5 years.
HDB Yearly Net Income VS EBIT VS OCF VS FCFHDB Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500B -500B 1T

1.2 Ratios

Looking at the Return On Assets, with a value of 1.61%, HDB belongs to the top of the industry, outperforming 92.91% of the companies in the same industry.
HDB has a Return On Equity of 13.57%. This is amongst the best in the industry. HDB outperforms 88.61% of its industry peers.
Industry RankSector Rank
ROA 1.61%
ROE 13.57%
ROIC N/A
ROA(3y)1.67%
ROA(5y)1.72%
ROE(3y)14.5%
ROE(5y)14.81%
ROIC(3y)N/A
ROIC(5y)N/A
HDB Yearly ROA, ROE, ROICHDB Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

The Profit Margin of HDB (24.66%) is comparable to the rest of the industry.
HDB's Profit Margin has declined in the last couple of years.
HDB does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 24.66%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.91%
PM growth 5Y-5.13%
GM growth 3YN/A
GM growth 5YN/A
HDB Yearly Profit, Operating, Gross MarginsHDB Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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1

2. Health

2.1 Basic Checks

HDB does not have a ROIC to compare to the WACC, probably because it is not profitable.
HDB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for HDB has been increased compared to 5 years ago.
HDB has a better debt/assets ratio than last year.
HDB Yearly Shares OutstandingHDB Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
HDB Yearly Total Debt VS Total AssetsHDB Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10T 20T 30T 40T

2.2 Solvency

The Debt to FCF ratio of HDB is 5.15, which is a neutral value as it means it would take HDB, 5.15 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HDB (5.15) is worse than 69.87% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that HDB has dependencies on debt financing.
HDB has a worse Debt to Equity ratio (1.22) than 86.84% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.22
Debt/FCF 5.15
Altman-Z N/A
ROIC/WACCN/A
WACC8.03%
HDB Yearly LT Debt VS Equity VS FCFHDB Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2T 4T 6T

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HDB Yearly Current Assets VS Current LiabilitesHDB Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

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7

3. Growth

3.1 Past

HDB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.74%.
The Earnings Per Share has been growing by 13.31% on average over the past years. This is quite good.
The Revenue has grown by 13.06% in the past year. This is quite good.
The Revenue has been growing by 27.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.74%
EPS 3Y10.59%
EPS 5Y13.31%
EPS Q2Q%5.96%
Revenue 1Y (TTM)13.06%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%55.12%

3.2 Future

Based on estimates for the next years, HDB will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.03% on average per year.
Based on estimates for the next years, HDB will show a quite strong growth in Revenue. The Revenue will grow by 13.29% on average per year.
EPS Next Y10.67%
EPS Next 2Y13.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.86%
Revenue Next 2Y12.77%
Revenue Next 3Y13.29%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
HDB Yearly Revenue VS EstimatesHDB Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500B 1T 1.5T 2T 2.5T
HDB Yearly EPS VS EstimatesHDB Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100 200 300

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1

4. Valuation

4.1 Price/Earnings Ratio

HDB is valuated rather expensively with a Price/Earnings ratio of 21.98.
HDB's Price/Earnings ratio is rather expensive when compared to the industry. HDB is more expensive than 82.53% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.85, HDB is valued at the same level.
The Price/Forward Earnings ratio is 20.34, which indicates a rather expensive current valuation of HDB.
HDB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HDB is more expensive than 78.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HDB to the average of the S&P500 Index (20.89), we can say HDB is valued inline with the index average.
Industry RankSector Rank
PE 21.98
Fwd PE 20.34
HDB Price Earnings VS Forward Price EarningsHDB Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of HDB is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 12.67
EV/EBITDA N/A
HDB Per share dataHDB EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HDB does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as HDB's earnings are expected to grow with 13.03% in the coming years.
PEG (NY)2.06
PEG (5Y)1.65
EPS Next 2Y13.03%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

HDB has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 1.14, HDB pays less dividend than the industry average, which is at 3.42. 81.27% of the companies listed in the same industry pay a better dividend than HDB!
With a Dividend Yield of 1.14, HDB pays less dividend than the S&P500 average, which is at 2.40.
Industry RankSector Rank
Dividend Yield 1.14%

5.2 History

The dividend of HDB is nicely growing with an annual growth rate of 9.89%!
HDB has been paying a dividend for at least 10 years, so it has a reliable track record.
HDB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.89%
Div Incr Years3
Div Non Decr Years3
HDB Yearly Dividends per shareHDB Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2021 2022 2023 2024 5 10 15 20

5.3 Sustainability

20.94% of the earnings are spent on dividend by HDB. This is a low number and sustainable payout ratio.
HDB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.94%
EPS Next 2Y13.03%
EPS Next 3YN/A
HDB Yearly Income VS Free CF VS DividendHDB Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500B -500B 1T
HDB Dividend Payout.HDB Dividend Payout, showing the Payout Ratio.HDB Dividend Payout.PayoutRetained Earnings

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HDFC BANK LTD-ADR

NYSE:HDB (5/14/2025, 8:04:00 PM)

After market: 71.5 -0.16 (-0.22%)

71.66

-0.73 (-1.01%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-19 2025-04-19/amc
Earnings (Next)07-18 2025-07-18
Inst Owners53.57%
Inst Owner Change0.02%
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap182.87B
Analysts86.67
Price Target77.65 (8.36%)
Short Float %0.55%
Short Ratio4.19
Dividend
Industry RankSector Rank
Dividend Yield 1.14%
Yearly Dividend0.69
Dividend Growth(5Y)9.89%
DP20.94%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)31.81%
Min Revenue beat(2)-0.18%
Max Revenue beat(2)63.8%
Revenue beat(4)1
Avg Revenue beat(4)13.89%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)63.8%
Revenue beat(8)2
Avg Revenue beat(8)6.58%
Revenue beat(12)6
Avg Revenue beat(12)6.96%
Revenue beat(16)9
Avg Revenue beat(16)6.49%
PT rev (1m)11.25%
PT rev (3m)21.12%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)-1.31%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.37%
Revenue NY rev (3m)-3.74%
Valuation
Industry RankSector Rank
PE 21.98
Fwd PE 20.34
P/S 5.44
P/FCF 12.67
P/OCF 12.26
P/B 2.99
P/tB 2.99
EV/EBITDA N/A
EPS(TTM)3.26
EY4.55%
EPS(NY)3.52
Fwd EY4.92%
FCF(TTM)5.66
FCFY7.89%
OCF(TTM)5.84
OCFY8.15%
SpS13.18
BVpS23.96
TBVpS23.96
PEG (NY)2.06
PEG (5Y)1.65
Profitability
Industry RankSector Rank
ROA 1.61%
ROE 13.57%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 24.66%
GM N/A
FCFM 42.91%
ROA(3y)1.67%
ROA(5y)1.72%
ROE(3y)14.5%
ROE(5y)14.81%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.91%
PM growth 5Y-5.13%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.07
Health
Industry RankSector Rank
Debt/Equity 1.22
Debt/FCF 5.15
Debt/EBITDA N/A
Cap/Depr 107.11%
Cap/Sales 1.42%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 173.98%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC8.03%
ROIC/WACCN/A
Cap/Depr(3y)131.18%
Cap/Depr(5y)129.81%
Cap/Sales(3y)1.95%
Cap/Sales(5y)1.93%
Profit Quality(3y)84.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.74%
EPS 3Y10.59%
EPS 5Y13.31%
EPS Q2Q%5.96%
EPS Next Y10.67%
EPS Next 2Y13.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)13.06%
Revenue growth 3Y38.04%
Revenue growth 5Y27.58%
Sales Q2Q%55.12%
Revenue Next Year10.86%
Revenue Next 2Y12.77%
Revenue Next 3Y13.29%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y374.37%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y320.62%
OCF growth 3YN/A
OCF growth 5YN/A