banking

HDFC Bank

HDFCBANK · Nifty 50

₹787.1

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 17.2 (38%ile of 5Y range 10-24). Trading near median.

Sector Positionbanking sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score81/100 (STRONG). 2 positive flags, 2 concerns.

Historical Context157 similar technical setups. Average outcome: -6.5% decline. 0% positive.

Revenue TrendRevenue declining at -1.8% YoY. Revenue declining — -1.8% YoY

Bank HealthROA 1.38% · PB 1.6 · Asset growth 9.2%.

Fundamental

81/100

STRONG

Trust

90/100

Verification

Coverage

89/100

HIGH

Quick Take

HDFC Bank scores 81/100 on fundamentals (strong). HDFC Bank: PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 81/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 8.7% broken into three drivers. Each shows how efficiently the company generates returns.

ROE8.7%=

25.1%Net Margin

0.1xTurnover

6.3xLeverage

ROE of 8.69% is modest leverage-driven and stable. Net margin of 25.1% × asset turnover of 0.06x × leverage of 6.3x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 25.1% means the company keeps ₹25.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.06x means the company generates ₹0.06 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 6.3x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

Net

25.1%

improving

Financial Health

Peer Comparison

HDFC Bank is compared against 10 peers in the banking sector.

AUBANK AXISBANK BANDHANBNK BANKBARODA BANKINDIA CANBK FEDERALBNK ICICIBANK IDFCFIRSTB INDIANB

Bank Metrics

Return on Assets

1.38%

Benchmark: >1%

Efficiency Ratio

74.9%

Lower is better

Asset Growth

+9.2%

Year over year

PB Ratio

1.6x

Price to book

ROA of 1.38% is strong (benchmark: >1% for banks). Strong asset utilization. P/B of 1.55x — trading above book. Reasonable valuation for a bank.

Key Watchpoints

🟢

Breaks above ₹826 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹748 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 17.2

Valuation normalization

🟢

Banking sector entering leadership

Sector rotation signal

Detected Patterns

✅ Strong ROA: ROA of 1.38% — above 1% benchmark for banks

Risk Flags

⚠️ 2 Warning✅ 2 Positive4 total flags

⚠️Non-core revenue is 11% of total

Earnings Quality

Significant income from non-operating sources. Core business may be smaller than it appears.

⚠️Low promoter holding: 0%

Governance

No single controlling shareholder. Management may not be aligned with shareholders.

✅PEG ratio: 0.9x — attractive growth-adjusted valuation

Valuation

Growth available at reasonable price. Favourable risk-reward.

✅Strong analyst consensus: strong_buy (39 analysts)

Valuation

Mean recommendation: 1.2/5 (1=Strong Buy, 5=Strong Sell). Institutional confidence is high.

➡️ 4 flags — 2 positive, 2 warning. Mixed profile.

Data Quality

90/100All ratios self-computed from verified sources. Multi-year data.

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

17.2HIGH

P/B Ratio

2.0HIGH

ROE

13.8%HIGH

Market Cap

₹118938318.9L CrHIGH

From 52W High

77% of high

Promoter Holding

0.2%MODERATE

Institutional

60.0%

Sector Peers

← All Stocks Market GPS Daily Brief banking Sector