HDFC Bank Limited (HDFCBANK) AI Stock Analysis

• Market Cap: ₹15.15T
• Dividend Yield: 1.09%
• Average Volume (3M): 788.48K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.91
• Revenue Growth: 1.30%
• EPS Growth: 3.86%
• Country: IN
• Employees: 214,521
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 12.10
• Shares Outstanding: 15,376,693,000
• 10 Day Avg. Volume: 1,030,275
• 30 Day Avg. Volume: 788,482
• PEG Ratio: -46.91
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 2.86
• P/FCF Ratio: -6.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,196.00
• Price Target Upside: 19.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ₹1,105.00 ▲(10.22% Upside)

HDFC Bank's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust loan growth and asset quality. Technical analysis and valuation suggest moderate market positioning, with some challenges in cash flow stability and competitive pressures.

Positive Factors

Strong Loan Growth

Accelerated loan growth and market share gains in deposits indicate a robust business model and competitive positioning, supporting long-term revenue expansion.

Healthy Asset Quality

Stable asset quality suggests effective risk management, ensuring long-term financial stability and resilience against economic fluctuations.

Technology and Distribution Investment

Continued investment in technology and distribution enhances operational efficiency and customer engagement, fostering sustainable growth and competitive advantage.

Negative Factors

NIM Compression

NIM compression affects profitability, potentially limiting earnings growth and financial flexibility in the medium term.

Deposit Growth Challenges

Slower deposit growth compared to industry peers may hinder the bank's ability to fund loan growth and maintain competitive lending rates.

Competitive Home Loan Market

Intense competition in the home loan market could pressure margins and limit growth opportunities, impacting long-term profitability.

HDFC Bank Limited Business Overview & Revenue Model

Company Description

HDFC Bank Limited (HDFCBANK) is one of India's leading private sector banks, established in 1994. The bank operates in various sectors including retail banking, wholesale banking, and treasury operations. HDFC Bank offers a wide range of financial products and services such as savings and current accounts, fixed deposits, loans (personal, home, and auto), credit and debit cards, insurance, and investment solutions. With a strong emphasis on technology and digital banking, HDFC Bank serves millions of customers across India through an extensive network of branches and ATMs.

How the Company Makes Money

HDFC Bank generates revenue primarily through interest income, which comes from the loans it provides to customers, including personal loans, home loans, and business loans. The bank earns interest on these loans as customers repay them over time. Additionally, HDFC Bank generates non-interest income through various channels, including fees and commissions from services such as account maintenance, payment transactions, and wealth management. Another significant revenue stream is the bank's investment income, derived from its holdings in government securities and other financial instruments. The bank also partners with various financial institutions and fintech companies to enhance its digital offerings and payment solutions, which contribute to its earnings through transaction fees and increased customer engagement.

HDFC Bank Limited Financial Statement Overview

Summary

HDFC Bank has shown strong revenue and profit growth with efficient cost management and improving profitability margins. The balance sheet is stable with moderate leverage and good return on equity. However, cash flows have been volatile, indicating a need for improvement in free cash flow stability.

Income Statement

HDFC Bank has shown consistent revenue growth with a significant increase from 2020 to 2025. Revenue grew from 794,470,700,000 in 2020 to 4,709,150,000,000 in 2025, demonstrating robust growth. The gross profit margin is strong at around 60.9% for 2025, indicating efficient cost management. Net profit margin improved to 15.0% in 2025, showing enhanced profitability. The EBIT and EBITDA margins have also improved, reflecting strong operational efficiency.

Balance Sheet

The balance sheet of HDFC Bank demonstrates stability with a debt-to-equity ratio of 1.22 in 2025, showing moderate leverage. The return on equity has been improving, reaching 13.6% in 2025, indicating efficient use of equity capital. The equity ratio is 11.9%, suggesting a sound capital structure with a substantial asset base.

Cash Flow

Cash flow from operations has been volatile, with negative figures in 2025. Free cash flow shows a decline, which could be a concern. However, the operating cash flow to net income ratio is improving, indicating better cash conversion from income. The bank needs to focus on stabilizing its free cash flow for stronger financial health.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.84T	4.71T	3.52T	1.98T	1.60T	1.53T
Gross Profit	2.89T	2.87T	1.85T	1.13T	892.43B	782.43B
EBITDA	1.95T	2.84T	757.81B	685.87B	535.98B	453.69B
Net Income	723.60B	707.92B	622.66B	495.45B	386.00B	325.98B
Balance Sheet
Total Assets	45.15T	43.92T	40.30T	25.76T	21.11T	18.00T
Cash, Cash Equivalents and Short-Term Investments	1.77T	9.20T	9.93T	7.24T	4.34T	5.32T
Total Debt	6.00T	6.35T	7.31T	3.24T	2.19T	1.92T
Total Liabilities	39.50T	38.54T	35.60T	22.84T	18.60T	15.89T
Stockholders Equity	5.43T	5.22T	4.56T	2.89T	2.47T	2.10T
Cash Flow
Free Cash Flow	0.00	-2.11T	968.48B	433.58B	554.69B	407.80B
Operating Cash Flow	0.00	-2.07T	1.02T	477.20B	581.02B	424.76B
Investing Cash Flow	0.00	-38.51B	-3.67T	-4.39T	-3.30T	-16.81B
Financing Cash Flow	0.00	2.32T	3.35T	4.17T	2.91T	-73.21B

HDFC Bank Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1002.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HDFCBANK, the sentiment is Positive. The current price of 1002.55 is above the 20-day moving average (MA) of 994.38, above the 50-day MA of 985.35, and above the 200-day MA of 950.72, indicating a bullish trend. The MACD of 4.64 indicates Negative momentum. The RSI at 55.04 is Neutral, neither overbought nor oversold. The STOCH value of 68.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HDFCBANK.

HDFC Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BANKBARODA	81 Outperform	₹1.49T	7.75	―	2.82%	4.40%	-3.84%
HDFCBANK	79 Outperform	₹15.15T	20.84	―	1.09%	1.30%	3.86%
AXISBANK	76 Outperform	₹3.81T	14.62	―	0.08%	6.08%	-7.26%
SBIN	76 Outperform	₹8.83T	10.75	―	1.62%	8.90%	11.93%
PNB	75 Outperform	₹1.42T	8.32	―	2.33%	12.10%	12.93%
ICICIBANK	74 Outperform	₹9.55T	17.80	―	0.79%	14.32%	11.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

HDFC Bank Limited Corporate Events

HDFC Bank Re-appoints Kaizad Bharucha as Deputy Managing Director

HDFC Bank Limited has announced the re-appointment of Mr. Kaizad Bharucha as Deputy Managing Director for a period of three years, pending approval from the Reserve Bank of India. Mr. Bharucha, a key figure in the bank’s leadership, has significantly contributed to its strategic direction and growth, particularly in the areas of risk management, credit policies, and technology transformation. His continued leadership is expected to further strengthen the bank’s position in the industry and support its ongoing initiatives in inclusive banking and corporate social responsibility.

HDFC Bank Releases Earnings Call Recording for Q2 2025

HDFC Bank Limited has announced the availability of the audio recording of its earnings call, which discusses the unaudited financial results for the quarter and half-year ended September 30, 2025. This move is part of the bank’s commitment to transparency and regulatory compliance, providing stakeholders with insights into its financial performance and strategic direction.

HDFC Bank Receives ESG Rating of 70 for FY 2024

HDFC Bank Limited has received an ESG rating of ’70’ for the fiscal year 2024 from NSE Sustainability Ratings & Analytics Ltd. This rating was independently prepared based on publicly available information, and the bank did not engage the rating agency for this assessment. The ESG rating reflects the bank’s performance in environmental, social, and governance aspects, which can impact its reputation and stakeholder trust.

HDFC Bank Grants Stock Options and RSUs to Employees

HDFC Bank Limited has announced the grant of stock options and restricted stock units under its Employee Stock Option Scheme and Employees’ Stock Incentive Master Scheme. This move is part of the bank’s strategy to incentivize and retain employees, aligning their interests with the company’s growth. The stock options and units are structured to vest over a period of up to four years, with specific vesting schedules and exercise periods, reflecting the bank’s commitment to long-term employee engagement and value creation.

HDFC Bank Schedules Key Investor Meetings for September 2025

HDFC Bank Limited has announced its schedule for upcoming Analyst and Institutional Investor Meetings, which are set to take place in Gurgaon and Mumbai in September 2025. These meetings are significant for stakeholders as they provide insights into the bank’s strategic direction and financial performance, potentially impacting investor relations and market positioning.