HDFC Bank Limited (HDFCBANK) AI Stock Analysis

• Market Cap: ₹15.41T
• Dividend Yield: 1.1%
• Average Volume (3M): 788.48K
• Price to Earnings (P/E): 21.2
• 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: 15,363,698,000
• 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: ₹1,166.00
• Price Target Upside: 16.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 79 Outperform
• Price Target: ₹1,105.00 ▲(10.71% Upside)

HDFC Bank's strong financial performance, characterized by robust revenue and profit growth, is the most significant factor driving the score. The earnings call provided a balanced view with strategic initiatives and challenges. Technical analysis indicates a neutral trend, while valuation metrics suggest moderate attractiveness. Overall, the bank's resilience and strategic focus support a positive outlook, despite some short-term challenges.

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 Limited generates revenue through several key channels. One of the primary sources of income is interest earned from loans provided to individuals and businesses, encompassing personal, home, auto, and business loans. Additionally, the bank earns from fees and commissions associated with banking transactions and services, such as credit card fees, transaction processing fees, and investment product sales. The bank also gains from treasury operations, which involve trading and investment activities in the financial markets. HDFC Bank's extensive branch network and digital banking platforms support its ability to offer a wide range of financial products and services, contributing significantly to its revenue. Strategic partnerships with various financial service providers and corporations further enhance its service offerings and revenue-generating capabilities.

HDFC Bank Limited Financial Statement Overview

Summary

HDFC Bank has demonstrated strong revenue and profit growth with efficient cost management and improving profitability margins. The balance sheet shows a stable financial position with moderate leverage and good return on equity. However, cash flows have shown some volatility, and efforts should be directed towards improving 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	2.29T	1.13T	911.86B	1.53T
Gross Profit	2.89T	2.87T	2.29T	1.13T	892.43B	777.97B
EBITDA	1.95T	2.84T	757.81B	638.47B	525.55B	441.82B
Net Income	723.60B	707.92B	640.62B	459.97B	380.53B	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: 998.10
• 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 998.1 is above the 20-day moving average (MA) of 989.02, above the 50-day MA of 974.58, and above the 200-day MA of 932.82, indicating a bullish trend. The MACD of 9.37 indicates Negative momentum. The RSI at 57.65 is Neutral, neither overbought nor oversold. The STOCH value of 55.70 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	―	₹1.37T	7.03	―	3.06%	7.78%	2.18%
HDFCBANK	―	₹15.41T	21.21	―	1.10%	1.30%	3.86%
SBIN	―	₹8.21T	9.99	―	1.70%	10.39%	17.04%
AXISBANK	―	₹3.80T	14.30	―	0.08%	6.08%	-7.26%
PNB	―	₹1.31T	7.67	―	2.42%	12.10%	12.93%
ICICIBANK	―	₹10.26T	19.13	―	0.81%	14.32%	11.36%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

HDFC Bank Limited Corporate Events

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.