HDFC Bank logged a -0.1% change during today's morning session, and is now trading at a price of $36.7 per share.
HDFC Bank returned gains of 15.7% last year, with its stock price reaching a high of $39.8 and a low of $28.89. Over the same period, the stock outperformed the S&P 500 index by 1.9%. More recently, the company's 50-day average price was $35.59. HDFC Bank Limited provides banking and financial products and services to individuals and businesses in India, Bahrain, Hong Kong, Singapore, and Dubai. Based in Mumbai, India, the Large-Cap Finance company has 214,521 full time employees. HDFC Bank has not offered a dividend during the last year.
Strong Revenue Growth and a Positive EPS Growth Rate:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $8,942 | $10,698 | $11,763 | $13,763 | $22,245 | $25,636 |
| Interest Income (M) | $7,873 | $9,348 | $9,870 | $11,120 | $14,975 | $16,440 |
| Operating Margins | 54% | 56% | 57% | 59% | 38% | 39% |
| Net Margins | 39% | 42% | 43% | 44% | 34% | 31% |
| Net Income (M) | $3,452 | $4,457 | $5,088 | $6,028 | $7,471 | $7,884 |
| Diluted Shares (M) | 5,506 | 5,523 | 5,563 | 5,587 | 7,107 | 7,659 |
| Earnings Per Share | $0.62 | $0.8 | $0.91 | $1.07 | $1.05 | $1.04 |
| EPS Growth | n/a | 29.03% | 13.75% | 17.58% | -1.87% | -0.95% |
| Avg. Price | $55.32 | $49.86 | $71.36 | $58.89 | $67.11 | $36.74 |
| P/E Ratio | 87.81 | 61.56 | 77.57 | 54.53 | 63.31 | 34.99 |
| Free Cash Flow (M) | $2,028 | $12,360 | $7,311 | $5,275 | $11,621 | $13,218 |
| CAPEX (M) | $243 | $244 | $347 | $531 | $646 | $777 |
| Total Debt (M) | $13,616 | $16,062 | $20,487 | $24,996 | $79,779 | $68,666 |
HDFC Bank has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and positive EPS growth. Furthermore, HDFC Bank has decent net margins with a stable trend.
an Exceptionally Low P/B Ratio but Trading Above Its Fair Price:
HDFC Bank has a trailing twelve month P/E ratio of 23.7, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $2.98, the company has a forward P/E ratio of 11.9. According to the 25.1% compound average growth rate of HDFC Bank's historical and projected earnings per share, the company's PEG ratio is 0.94. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 15.4%. On this basis, the company's PEG ratio is 1.55. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing HDFC Bank in terms of its equity because its P/B ratio is 0.11 while the sector average is 1.78. The company's shares are currently trading 121.5% below their Graham number.
HDFC Bank Has an Average Rating of Buy:
The 4 analysts following HDFC Bank have set target prices ranging from $38.9 to $47.0 per share, for an average of $44.1 with a buy rating. The company is trading -16.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
HDFC Bank has a very low short interest because 0.3% of the company's shares are sold short. Institutions own 14.1% of the company's shares, and the insider ownership rate stands at 0.03%, suggesting a small amount of insider investors. The largest shareholder is GQG Partners LLC, whose 1% stake in the company is worth $1,831,114,537.
