HDFC Bank logged a -2.6% change during today's morning session, and is now trading at a price of $25.0 per share.
HDFC Bank returned losses of -27.2% last year, with its stock price reaching a high of $39.8 and a low of $23.91. Over the same period, the stock underperformed the S&P 500 index by -56.8%. AThe company's 50-day average price was $26.92. 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 211,178 full time employees. HDFC Bank has offered a 50.6% dividend yield over the last 12 months.
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 | $63.75 |
| P/E Ratio | 87.81 | 61.56 | 77.57 | 54.53 | 63.31 | 60.71 |
| 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.
HDFC Bank's Valuation Is in Line With Its Sector Averages:
HDFC Bank has a trailing twelve month P/E ratio of 19.1, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $1.47, the company has a forward P/E ratio of 18.3. The 13.2% compound average growth rate of HDFC Bank's historical and projected earnings per share yields a PEG ratio of 1.45. This implies that the shares are fairly valued. Furthermore, HDFC Bank is likely overvalued compared to the book value of its equity, since its P/B ratio of 10.31 is higher than the sector average of 1.78. The company's shares are currently trading 50.8% below their Graham number. Ultimately, HDFC Bank's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
There's an Analyst Consensus of Strong Upside Potential for HDFC Bank:
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 $1,323,802,955.
