Latest News

On 14th Feb 2024, HDFC bank made its 52 week low with a share price of 1363
Bank gave Negative 12.38% returns within 1 year. (Mint News)
Meanwhile Domestic Institutional Investors & Foreign Institutional Investors are increasing their stake in the bank in past 2 years.
Net Profit is almost triple from 2019 (22,446 Cr) to 2024(65,446 Cr)

HDFC Bank hits 52 week low

Why HDFC bank is not performing well in the past 4 years ?

If we look at the share price in last 4 years it was in consolidation phase, means it is moving in the sideways.
HDFC bank has given 0% returns in last 4 years.
It is not only the HDFC bank which has under performed when it comes to the returns but the overall Bank Nifty has not performed in last 1 year
In COVID time, RBI Repo rate was at 4.4% , since then RBI has increased its REPO rate to 6.5% in 2024 in order to cool down the inflation.
Due to increase in the REPO rate by 2.1% in 4 years has impacted the overall earnings of the banks.

Lets look at the Fundamental Analysis of the company

Key Ratios

Market Cap :~ 11 Lakh Crore, HDFC bank is the Largest Bank in India.
PEG Ratio: 0.73– The PEG ratio takes into account the expected growth in earnings, providing a more holistic view than just the PE ratio. A ratio below 1 suggests that the stock may be undervalued relative to its expected growth rate, indicating a good investment opportunity.
Sales Growth (5 years) :22% – This robust growth rate over the past five years indicates that HDFC Bank has achieved consistent expansion in revenue, reflecting a strong business model and growth strategy.

Change: -25.89% (from 25.89% to 0.00%)
Analysis: Promoters have completely divested their stake in the company during this period. This significant decrease could indicate various scenarios such as a change in ownership, strategic restructuring, or exiting the business.

Change: +8.44% (from 39.39% to 47.83%)
Analysis: FIIs have increased their stake by 8.44%, indicating growing interest and confidence from foreign investors. This could suggest positive sentiment towards the company’s performance or market potential.

Change: +11.87% (from 21.46% to 33.33%)
Analysis: Domestic institutional investors have significantly raised their stake by 11.87%, indicating strong support and confidence from within the country’s financial institutions. This could imply positive perceptions about the company’s prospects or investment attractiveness.

Change: +0.02% (from 0.16% to 0.18%)
Analysis: The government’s stake has seen a marginal increase of 0.02%. While this change is relatively small, it could indicate continued interest or involvement in the company, possibly due to strategic reasons or policy objectives.

Change: +5.54% (from 13.10% to 18.64%)
Analysis: Public shareholding has increased by 5.54%, suggesting greater participation from individual and retail investors. This could reflect improved market sentiment, increased liquidity, or a perceived opportunity for growth.

When we look at the company’s stock price for the past 4 years, it was trading in the same range
In last 4 years stock price gave almost 0% returns
Resistance level =1716 & Support level =1290 & this resistance is going to breakout soon.

Being the Largest Bank in India, this blue-chip stock has not performed well in last 4 years so it will perform really good in the coming 22 years
In last 5 years, Sales & Net Profit has more than doubled but stock price gave only 4.6% CAGR
Overall Bank Nifty is trading at a lower valuation in last 5 years
Many largecap stocks have not given any good run up in the market so these large cap will perform well.
Company is fundamentally strong as per the balance sheet
If you are thinking of the long term you can definitely think of this company in your portfolio

Check out this- Kotak Mahindra Bank Fundamental Analysis

This article is a complete guide about HDFC Bank Ltd.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, this information will help you in your further investment.
If you have any further queries, please comment below. We will be happy to answer all your questions.
If you like this information, share the article with as many people as possible