Hdfc Bank Profitability Analysis

HDB
 Stock
  

USD 55.51  0.55  1.00%   

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 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 over time as well as its relative position and ranking within its peers. Please check Risk vs Return Analysis.
  
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As of July 5, 2022, Price to Sales Ratio is expected to decline to 13.59. In addition to that, Return on Sales is expected to decline to 0.64. Hdfc Bank Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The past year's Accumulated Other Comprehensive Income was at 31.26 Billion. The current year Consolidated Income is expected to grow to about 404.5 B, whereas Income Tax Expense is forecasted to decline to about 111.4 B.

Hdfc Bank Revenues

721.24 Billion

Share
Is Hdfc Bank's industry 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 Bank 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 YOY
0.23
Market Capitalization
102.7 B
Quarterly Revenue Growth YOY
0.17
Return On Assets
0.0195
Return On Equity
0.17
The market value of Hdfc Bank is measured differently than its book value, which is the value of Hdfc Bank 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 Hdfc Bank value 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 Earnings Per Share vs. Price to Earning 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 is one of the top stocks in price to earning category among related companies. It is one of the top stocks in earnings per share category among related companies . The ratio of Price to Earning to Earnings Per Share for Hdfc Bank is about  323.39 . The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 562.9 B. The current year Earnings before Tax is expected to grow to about 545.7 B. Comparative valuation analysis is a catch-all model that can be used if you cannot value Hdfc Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hdfc Bank's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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 Bank Earnings Per Share vs. Price to Earning

Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Hdfc Bank 
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
132.59 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Hdfc Bank 
Earnings per Share 
 = 
Earnings 
Average Shares 
0.41 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.

Hdfc Bank Earnings Per Share Comparison

Hdfc Bank is currently under evaluation in earnings per share category among related companies.

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 ReportedProjected for 2022
Accumulated Other Comprehensive Income31.3 B33.7 B
Consolidated Income374.9 B404.5 B
Net Income374.9 B404.5 B
Net Income Common Stock374.9 B404.5 B
Net Income to Non Controlling Interests26.4 M27.1 M
Operating Income505.8 B545.7 B
Income Tax Expense130.9 B111.4 B
HDFC Bank Limited provides various banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. HDFC Bank Limited was incorporated in 1994 and is based in Mumbai, India. Hdfc Bank operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 141579 people.

Hdfc Bank 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.

Hdfc Bank Profitability Trends

Hdfc Bank profitability trend refers to the progression of profit or loss within a business. An upward trend means that Hdfc Bank's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Hdfc Bank's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Hdfc Bank Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Hdfc Bank different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Hdfc Bank in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Hdfc Bank's future profitability.

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 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 to buy it.
The correlation of Hdfc Bank is a statistical measure of how it moves in relation to other equities. 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 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Hdfc Bank position

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Disruptive Technologies Theme
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Please check Risk vs Return Analysis. Note that the Hdfc Bank information on this page should be used as a complementary analysis to other Hdfc Bank's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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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 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.
Potential Hdfc Bank investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Hdfc Bank investors may work on each financial statement separately, they are all related. The changes in Hdfc Bank's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Hdfc Bank's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.