Company Introduction
Headquarters Location: Mumbai, India
Core Business Summary: HDFC Bank is a leading Indian banking and financial services company providing a wide range of financial products and services.
Overview
₹ 982
21.36
46
₹ 16,894 Cr
Company Overview
Core Products & Services: Credit cards, loans, savings accounts, investment products, and payment services
Industry Sector: Banking and Financial Services
Industry Trends
Industry Growth Next 5 Years: 10-12% CAGR
Key Demand Drivers: Increasing demand for digital banking, growing middle class, and government initiatives to promote financial inclusion
Last 5 Year Cagr Industry Growth: 15%
Major Competitors: ICICI Bank, Axis Bank, State Bank of India
Financials
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 63,162 | 73,271 | 85,288 | 105,161 | 122,189 | 128,552 | 135,936 | 170,754 | 283,649 | 336,367 |
| YoY % | +16.0% | +16.4% | +23.3% | +16.2% | +5.2% | +5.7% | +25.6% | +66.1% | +18.6% | |
| EBITDA | 738 | 886 | 967 | 1,221 | 1,277 | 1,385 | 1,681 | 2,345 | 3,092 | 3,805 |
| YoY % | +20.1% | +9.1% | +26.3% | +4.6% | +8.5% | +21.4% | +39.5% | +31.9% | +23.1% | |
| Net Profit | 12,821 | 15,317 | 18,561 | 22,446 | 27,296 | 31,857 | 38,151 | 46,149 | 65,446 | 73,440 |
| YoY % | +19.5% | +21.2% | +20.9% | +21.6% | +16.7% | +19.8% | +21.0% | +41.8% | +12.2% | |
| EPS | 12.66 | 14.91 | 17.83 | 20.50 | 24.85 | 28.87 | 34.31 | 41.22 | 42.16 | 46.26 |
| YoY % | +17.8% | +19.6% | +15.0% | +21.2% | +16.2% | +18.8% | +20.1% | +2.3% | +9.7% |
Growth Drivers
Historical Growth Drivers: Expansion of branch network, growth in retail loans, and increasing adoption of digital banking services
Future Growth Drivers: Continued investment in digital transformation, expansion into new markets, and strategic partnerships to enhance offerings
Product Innovation: Introduction of new digital payment products and services, such as mobile wallets and UPI-based transactions
Technology Adoption: Adoption of AI, machine learning, and cloud-based technologies to enhance customer experience and operational efficiency
Market Position
Competitive Position: One of the largest private sector banks in India
Estimated Market Share: Around 20-25% in the Indian banking sector
Technological Moat: Strong digital infrastructure and high level of investment in technology
Strengths
- Over 6,300 branches across India
- Gross NPA ratio of around 1.2%, indicating a strong asset quality
- Revenue growth of around 20% CAGR over the last 5 years
- Return on equity of around 15-16%, indicating strong profitability
Weaknesses
- Exposure to economic downturns, which can impact loan growth and asset quality
- Regulatory changes can impact the bank's operations and profitability
- High competition in the Indian banking sector, which can impact market share and pricing power
- Risks related to cybersecurity, data breaches, and other operational failures
Valuations
Valuations for HDFCBANK
| Formula | Bull | Base | Bear | Margin of Safety |
|---|---|---|---|---|
| Ben Graham | ₹ 823 | ₹ 823 | ₹ 303 | -19.2% |
| Peter Lynch | – | ₹ 463 | – | -112.2% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
Outlook
Opportunities: Growing demand for digital banking, increasing financial inclusion, and expanding into new markets
Risks: Economic downturns, regulatory changes, and competition from fintech companies
Balanced Outlook: HDFC Bank is well-positioned to benefit from the growing demand for digital banking and increasing financial inclusion, but needs to navigate the risks and challenges in the Indian banking sector.
Stock Price Performance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Price | 266.11 | 358.30 | 482.80 | 577.95 | 414.83 | 743.38 | 753.00 | 805.28 | 735.25 | 883.93 |
| YoY % | +34.6% | +34.7% | +19.7% | -28.2% | +79.2% | +1.3% | +6.9% | -8.7% | +20.2% |
Stock 3 Year Rolling CAGR
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Average |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 10.53% | 12.80% | 12.73% | 6.92% | 3.62% | 9.93% | 27.79% | 25.36% | 13.71% |
| EBITDA | 9.43% | 11.28% | 9.71% | 4.29% | 9.60% | 19.19% | 22.52% | 17.51% | 12.94% |
| Net Profit | 13.13% | 13.59% | 13.72% | 12.38% | 11.81% | 13.15% | 19.71% | 16.75% | 14.28% |
| EPS | 12.09% | 11.20% | 11.70% | 12.09% | 11.35% | 12.60% | 7.11% | 3.92% | 10.26% |
| Price | 21.97% | 17.28% | -4.93% | 8.75% | 21.99% | 2.70% | -0.79% | 3.16% | 8.77% |
