HDFC Bank Profit Margin vs. Current Valuation
| HDB Stock | USD 66.76 0.74 1.10% |
HDFC Bank Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 1.42 | 1.6 |
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| Net Profit Margin | 0.36 | 0.2799 |
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| Operating Profit Margin | 1.35 | 0.7961 |
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| Pretax Profit Margin | 0.53 | 0.3346 |
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| Return On Assets | 0.0115 | 0.0159 |
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| Return On Equity | 0.12 | 0.1404 |
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For HDFC Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of HDFC Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well HDFC Bank Limited utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between HDFC Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of HDFC Bank Limited over time as well as its relative position and ranking within its peers.
HDFC |
Is Diversified Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HDFC Bank. If investors know HDFC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HDFC Bank listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.39 | Earnings Share 3.14 | Revenue Per Share 217.953 | Quarterly Revenue Growth 0.63 | Return On Assets 0.0171 |
The market value of HDFC Bank Limited is measured differently than its book value, which is the value of HDFC that is recorded on the company's balance sheet. Investors also form their own opinion of HDFC Bank's value that differs from its market value or its book value, called intrinsic value, which is HDFC Bank's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HDFC Bank's market value can be influenced by many factors that don't directly affect HDFC Bank's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HDFC Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if HDFC Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HDFC Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
HDFC Bank Limited Current Valuation vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining HDFC Bank's current stock value. Our valuation model uses many indicators to compare HDFC Bank value to that of its competitors to determine the firm's financial worth. HDFC Bank Limited is rated # 2 in profit margin category among its peers. It is rated as one of the top companies in current valuation category among its peers reporting about Huge of Current Valuation per Profit Margin. At present, HDFC Bank's Net Profit Margin is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the HDFC Bank's earnings, one of the primary drivers of an investment's value.HDFC Current Valuation vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
HDFC Bank |
| = | 0.25 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
HDFC Bank |
| = | 4.67 T |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
HDFC Current Valuation vs Competition
HDFC Bank Limited is rated as one of the top companies in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 44.81 Trillion. HDFC Bank retains roughly 4.67 Trillion in current valuation claiming about 10% of equities under Financials industry.
HDFC Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in HDFC Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, HDFC Bank will eventually generate negative long term returns. The profitability progress is the general direction of HDFC Bank's change in net profit over the period of time. It can combine multiple indicators of HDFC Bank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 365.4 B | 383.7 B | |
| Operating Income | 765.7 B | 804 B | |
| Income Before Tax | 765.7 B | 804 B | |
| Net Income Applicable To Common Shares | 529 B | 555.4 B | |
| Net Income | 751.8 B | 789.4 B | |
| Income Tax Expense | 111.2 B | 116.8 B | |
| Total Other Income Expense Net | -1.6 T | -1.5 T | |
| Net Income From Continuing Ops | 654.5 B | 687.2 B | |
| Net Interest Income | 1.3 T | 666.1 B | |
| Interest Income | 2.8 T | 3 T | |
| Change To Netincome | 172.6 B | 97.4 B | |
| Net Income Per Share | 90.42 | 94.94 | |
| Income Quality | 1.24 | 2.23 | |
| Net Income Per E B T | 0.84 | 0.55 |
HDFC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on HDFC Bank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of HDFC Bank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the HDFC Bank's important profitability drivers and their relationship over time.
Use HDFC Bank in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if HDFC Bank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HDFC Bank will appreciate offsetting losses from the drop in the long position's value.HDFC Bank Pair Trading
HDFC Bank Limited Pair Trading Analysis
The ability to find closely correlated positions to HDFC Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace HDFC Bank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back HDFC Bank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling HDFC Bank Limited to buy it.
The correlation of HDFC Bank is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as HDFC Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if HDFC Bank Limited moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for HDFC Bank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your HDFC Bank position
In addition to having HDFC Bank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Risk vs Return Analysis. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
To fully project HDFC Bank's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of HDFC Bank Limited at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include HDFC Bank's income statement, its balance sheet, and the statement of cash flows.