HDFC Bank Ltd (HDB) stock analysis
Close on Nov 11, 2026Market cap $133.51BP/E 17.8Yield 1.90%
StockData Score
Prices as of Nov 11, 2026How the score works
Weak7 of 30 checks passed
HDFC Bank passes 7 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 1/6
- Past performance
- 2/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Modest borrowings
Borrowings other than deposits are 16.5% of equity.
Earnings grew over 5 years
Net income grew 16.7% a year on average over the last five fiscal years.
Revenue growing 10%+ a year
Revenue grew 27.2% a year over the last three fiscal years.
Well capitalized
Equity is 15.5% of total assets; 8% or more is a comfortable cushion.
What to watch
Return on equity under 15%
Return on equity was 8.9% over the last twelve months and averaged 13.1% over five years; we look for 15% on both.
EPS growing under 10% a year
Diluted EPS grew 1.0% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 4.6% over the last twelve months, against a 5-year average of 16.7% a year.
Growing slower than the industry
Revenue grew 6.3% over the last twelve months; the Commercial Banks median is 11.3%.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
P/S against the industry
Not enough revenue data to compare.
P/B against the industry
Needs positive book value.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth1/6
Revenue growing 10%+ a year
Revenue grew 27.2% a year over the last three fiscal years.
EPS growing under 10% a year
Diluted EPS grew 1.0% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew 4.6% over the last twelve months, against a 5-year average of 16.7% a year.
Growing slower than the industry
Revenue grew 6.3% over the last twelve months; the Commercial Banks median is 11.3%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin trend
Banks and insurers do not report gross profit.
Past performance2/6
Return on equity under 15%
Return on equity was 8.9% over the last twelve months and averaged 13.1% over five years; we look for 15% on both.
Return on assets over 1%
Return on assets was 1.4%; for a bank or insurer, 1% or more is considered good.
Return on equity below the industry
HDFC Bank's return on equity of 8.9% is below the Commercial Banks median of 11.5%.
Earnings grew over 5 years
Net income grew 16.7% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 30.3% over the last twelve months, against a 5-year average of 36.3%.
Net margin below the industry
HDFC Bank's net margin of 30.3% is below the Commercial Banks median of 30.3%.
Financial health4/6
Well capitalized
Equity is 15.5% of total assets; 8% or more is a comfortable cushion.
Loans funded by deposits
Needs loans and deposits.
Adequate loan-loss reserve
The allowance for credit losses is not reported.
Efficient operations
Non-interest expense takes 54.2% of revenue; under 60% is efficient for a bank.
Deposits growing
Deposits grew 14.4% over the past year.
Modest borrowings
Borrowings other than deposits are 16.5% of equity.
Dividend0/6
No dividend
HDFC Bank has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for HDFC Bank. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $212.26M
- Value traded per 1% price move
- $139.29M
Downside
Medium risk
- Typical loss in a bad month
- 21.3%
- Volatility (annualized)
- 31%
- Sharpe ratio, 1 year
- -1.05
- Beta to the S&P 500 (5Y)
- 0.60
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +6.3% | +27.2% | +24.4% | +20.3% | |
| Net income | +4.6% | +12.5% | +16.7% | +19.6% | |
| EPS, diluted | +2.1% | +1.0% | +9.2% | +14.7% | |
| Free cash flow | -5.6% | +35.0% | +3.3% | +20.9% | |
| Dividend per share | +40.9% | +17.7% | +36.7% | +20.6% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 14.8% | 16.1% | 8.9% | |
| Return on assets | 1.7% | 1.9% | 1.4% | |
| Capex to revenue | 3.0% | 2.3% | 2.3% | |
| Diluted shares | 10.30B | 11.05B | 15.41B |
Where the cash went
Fiscal 2022 to 2026, five years combined
HDFC Bank generated ₹4.39T from operations and spent ₹829.34B on capital expenditure, dividends and share buybacks. 29% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 30.3% | 0.05× | 6.36× | 8.9% |
| FY2025 | 30.8% | 0.05× | 6.31× | 9.2% |
| FY2024 | 33.6% | 0.05× | 7.09× | 12.6% |
| FY2023 | 43.8% | 0.05× | 8.65× | 18.3% |
| FY2022 | 43.3% | 0.05× | 8.38× | 16.6% |
| FY2021 | 41.7% | 0.05× | 8.38× | 16.1% |
| FY2020 | 38.6% | 0.05× | 8.29× | 14.8% |
| FY2019 | 37.0% | 0.05× | 8.78× | 15.7% |
| FY2018 | 35.1% | 0.05× | 9.29× | 16.2% |
| FY2017 | 33.1% | 0.05× | 8.87× | 14.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero₹704.79B
- Cash generatingOperating cash flow above zero₹1.12T
- Return on assets improvedROA up on the prior year1.5% → 1.5%
- Earnings backed by cashOperating cash flow above net income₹1.12T vs ₹704.79B
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose– → –
- No dilutionShare count did not rise15.32B → 15.41B
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose0.05 → 0.05
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