HDFC Bank Limited (HDFCBANK.BO) stock analysis

In our weekly check, HDFC Bank Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 6.

About HDFC Bank Limited

HDFC Bank Limited is a Financial Services company (Banks - Regional) based in India, listed on BSE as HDFCBANK.BO.

What our checks show for HDFCBANK.BO

Red flags

• The net margin fell by 8.2 points over 5 years, to 15.8%: the company keeps less of each sale as profit.
• Profits not backed by cash
• Analysts expect revenue to shrink about 23.1% a year.
• Return on capital (ROCE) is only 2.1%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Free cash flow is only 0% of revenue.
• The stock has fallen as much as 55% from a peak. Would you have held through that?

Strengths

• The gross margin is 59.6% and has risen by 4 points: pricing power is holding.
• Analysts expect earnings per share to grow about 13.4% a year over the next years.
• Analysts expect the net margin to improve by 25.7 points from today's 15.8%.
• Revenue grew 36.7% a year over the last 3 years.
• Net profit grew 17.4% a year over the last 3 years.
• A large company: market value $112 billion.

Next earnings report: 2027-01-18

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Questions

What grade does HDFC Bank Limited (HDFCBANK.BO) have?

In our weekly check, HDFC Bank Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of HDFCBANK.BO stock?

This week's biggest flags for HDFC Bank Limited: Margins falling, Profits not backed by cash, Weak revenue forecast. In total 8 of 24 checks show a warning or a red flag.

What does HDFC Bank Limited do?

HDFC Bank Limited is a Financial Services company (Banks - Regional) based in India, listed on BSE as HDFCBANK.BO.

When does HDFC Bank Limited report earnings next?

The next earnings report is expected on 2027-01-18. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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