Fact based stock research
HDFC Bank (NSEI:HDFCBANK)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

HDFC Bank stock research in summary

hdfcbank.com

ANALYSIS: With an Obermatt Combined Rank of 68 (better than 68% compared with investment alternatives), HDFC Bank (Diversified Banks, India) shares have above-average financial characteristics compared with similar stocks. Shares of HDFC Bank are low in value (priced high) with a consolidated Value Rank of 11 (worse than 89% of alternatives). But they show above-average growth (Growth Rank of 97) and are safely financed (Safety Rank of 60, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 68, is a buy recommendation based on HDFC Bank's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company HDFC Bank exhibits low value (Obermatt Value Rank of 11), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 97). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 60) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	11
Growth Rank	97
Safety Rank	60
Combined Rank	68

Country	India
Industry	Diversified Banks
Index	BSE Sensex, Good Governace Growth Markets, CNX Nifty 50
Size class	XX-Large

This stock has achievements: Top 10 Stock.

20-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: HDFC Bank

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	13	13	11	11
GROWTH
GROWTH	63	91	97	97
SAFETY
SAFETY	45	45	60	60
SENTIMENT
SENTIMENT	51	39	21	^new
360° VIEW
360° VIEW	31	45	42	^new

Most recent update of the stock research: 20-Feb-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better HDFC Bank is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	13	13	11	11
GROWTH
GROWTH	63	91	97	97
SAFETY
SAFETY	45	45	60	60
COMBINED
COMBINED	19	49	68	68

Last update of combined financial performance: 20-Feb-2025. Stock analysis on combined financial performance: The higher the rank of HDFC Bank the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 11 (worse than 89% compared with alternatives), HDFC Bank shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for HDFC Bank. Price-to-Sales is 12 which means that the stock price compared with what market professionals expect for future profits is higher than 88% of comparable companies, indicating a low value concerning HDFC Bank's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 15, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of HDFC Bank. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 9 and Dividend Yield, which is lower than 76% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 11, is a sell recommendation based on HDFC Bank's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for HDFC Bank? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as HDFC Bank? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. HDFC Bank may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	13	7	12	12
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	21	17	9	9
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	11	16	15	15
DIVIDEND YIELD
DIVIDEND YIELD	22	24	24	24
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	13	13	11	11

Last update of Value Rank: 20-Feb-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of HDFC Bank; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 97 (better than 97% compared with alternatives) for 2025, HDFC Bank shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for HDFC Bank. Sales Growth has a value of 78, which means that, currently, professionals expect the company to grow more than 78% of its competitors. The same is valid for Profit Growth with a value of 60 and for Capital Growth with 100. In addition, Stock Returns had an above-average rank value of 73, which means they have been higher than 73% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 97, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, HDFC Bank exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	84	89	78	78
PROFIT GROWTH
PROFIT GROWTH	37	83	60	60
CAPITAL GROWTH
CAPITAL GROWTH	74	75	100	100
STOCK RETURNS
STOCK RETURNS	39	37	73	73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	63	91	97	97

Last update of Growth Rank: 20-Feb-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of HDFC Bank.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 60 (better than 60% compared with alternatives), the company HDFC Bank has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of HDFC Bank is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for HDFC Bank. Refinancing is at 56, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 56% of its competitors. Liquidity is also good at 64, meaning the company generates more profit to service its debt than 64% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 46, which means the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 60 (better than 60% compared with alternatives), HDFC Bank has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and HDFC Bank could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with HDFC Bank and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	46	30	46	46
REFINANCING
REFINANCING	37	51	56	56
LIQUIDITY
LIQUIDITY	60	70	64	64
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	45	45	60	60

Last update of Safety Rank: 20-Feb-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of HDFC Bank and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	93	95	^new
OPINIONS CHANGE
OPINIONS CHANGE	67	40	19	^new
PRO HOLDINGS
PRO HOLDINGS	6	20	15	^new
MARKET PULSE
MARKET PULSE	46	14	9	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	51	39	21	^new

Last update of Sentiment Rank: 20-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for HDFC Bank.
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