HDFC Bank Limited (HDFCBANK) AI Stock Analysis

• Market Cap: ₹14.44T
• Dividend Yield: 1.1%
• Average Volume (3M): 788.48K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.92
• 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: 15,384,577,000
• 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: ₹1,200.00
• Price Target Upside: 28.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ₹1,105.00 ▲(17.97% 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 provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. It operates in Treasury, Retail Banking, Wholesale Banking, Other Banking Business, and Unallocated segments. The company accepts savings, salary, current, rural, public provident fund, pension, and Demat accounts; fixed and recurring deposits; and safe deposit lockers; as well as offshore accounts and deposits, overdrafts against fixed deposits, and sweep-in facilities. It also provides personal, home, car, two wheeler, business, educational, gold, consumer, and rural loans; loans against properties, securities, rental receivables, and assets; loans for professionals; government sponsored programs; and loans on credit card, as well as working capital and commercial/construction equipment finance, healthcare/medical equipment and commercial vehicle finance, dealer finance, and term and professional loans. The company offers credit, debit, prepaid, and forex cards; payment and collection, export, import, remittance, bank guarantee, letter of credit, trade, hedging, and merchant and cash management services; insurance and investment products. It provides short term finance, bill discounting, structured finance, export credit, loan syndication, and documents collection services; online and wholesale, mobile, and phone banking services; unified payment interface, immediate payment, national electronic funds transfer, and real time gross settlement services; and channel financing, vendor financing, reimbursement account, money market, derivatives, employee trusts, cash surplus corporates, tax payment, and bankers to rights/public issue services, as well as financial solutions for supply chain partners and agricultural customers. As of March 31, 2022, the company had 21,683 banking outlets; 6,342 branches; and 18,130 automated teller machines in 3,188 cities/towns. HDFC Bank Limited was incorporated in 1994 and is based in Mumbai, India.

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: Negative
• Last Price: 936.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HDFCBANK, the sentiment is Negative. The current price of 936.65 is below the 20-day moving average (MA) of 979.52, below the 50-day MA of 988.94, and below the 200-day MA of 971.29, indicating a bearish trend. The MACD of -12.74 indicates Positive momentum. The RSI at 25.53 is Positive, neither overbought nor oversold. The STOCH value of 8.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹1.55T	8.08	―	2.86%	4.40%	-3.84%
HDFCBANK	79 Outperform	₹14.44T	19.86	―	1.10%	1.30%	3.86%
AXISBANK	76 Outperform	₹3.95T	15.16	―	0.08%	6.08%	-7.26%
SBIN	76 Outperform	₹9.23T	11.14	―	1.64%	8.90%	11.93%
PNB	75 Outperform	₹1.41T	8.29	―	2.40%	12.10%	12.93%
ICICIBANK	71 Outperform	₹10.04T	18.69	―	0.81%	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 Announces Key Management Elevations

HDFC Bank Limited has announced changes in its management structure, elevating three key employees to Group Head positions as of December 1, 2025. This strategic move aims to strengthen the bank’s leadership in critical areas such as Transportation and Infrastructure Finance, Large Local Corporates and PSU, and Information Security. The appointments reflect the bank’s commitment to enhancing its operational capabilities and maintaining its leadership position in the industry. The elevation of these experienced leaders is expected to positively impact the bank’s growth and stability, benefiting stakeholders and reinforcing its market position.

HDFC Bank Schedules Investor and Analyst Meetings

HDFC Bank Limited has announced a schedule of upcoming meetings with analysts and institutional investors, as per the SEBI regulations. These meetings, which include participation in forums and conferences across Mumbai, Australia, and Singapore, are aimed at engaging with stakeholders and enhancing the bank’s visibility in the financial community.

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.