This document analyzes HDFC Bank Ltd. It provides an overview of the current economic and banking industry scenarios in India. It then describes HDFC Bank, including its history, products/services, and upcoming CEO change. Fundamental ratios like EPS, P/E, and CAMELS analysis are presented to compare HDFC Bank's performance to peers. Both technical and fundamental analysis conclude HDFC Bank is well-positioned for long-term growth and recommend a strong buy.

1. Equity
Research
– HDFC
Bank Ltd.
BY-
GROUP - 4
SHIVAM SINGH (PG2019-H053)
SUPRIYA SAHA (PG2019-H060)
UDAYAGRAWAL (PG2019-H062)

2. Present Economic Scenario
 Role of RBI in managing the economy of India.
 Role of RBI on GDP projection.
 Contraction in GDP by 6.3% Y-o-Y.
 Recession in the 2020-2021 financial year.
Present Banking Industry Scenario
 Sufficiently capitalised and well-regulated.
 Innovative banking models like payments and small
finance banks.
 Restructuring of the domestic banking industry.
 Deposits as of Feb 2020, stood at Rs 132.35 lakh crore.

3. Description of
HDFC Bank
 First financial institution in India to receive an “in
principle” approval from the Reserve Bank of India
(RBI) to set up a bank in the private sector.
 HDFC Bank was incorporated in August 1994 in the
name of HDFC Bank Limited, with its registered office
in Mumbai, India.
 Largest bank in India by market capitalization as of
March 2020.
 Provides a variety of products and services.
 Sashidhar Jagdishan will replace Aditya Puri, current
CEO of HDFC Bank, who is set to retire on October 26,
2020.

4. Fundamental Analysis:
Ratios and comparison
with peers
Particulars HDFC
Bank
AXIS
Bank
ICICI
Bank
EPS 49.84 6.83 14.81
P/E 3.95 28.82 13.29
CMP* 1050.65 431.10 363.55
Dividend Yield 0.24% 0 0
P/B value 2.68 1.24 1.75

5. Corporate Actions
• The last AGM of HDFC Bank was held on July 18, 2020.
• For the year ending March 2020 HDFC Bank has
declared an equity dividend of 250.00% amounting to
Rs. 2.5 per share.
• At the current share price of Rs. 1043.85 this results in
dividend yield of 0.24%.

6. CAMELS
AnalysisParticulars HDFC Bank Axis Bank ICICI Bank
Capital Adequacy Ratio 19 18 16
Debt-Equity Ratio 7.56 9.23 8.47
Total Advances to Total Assets Ratio 0.66 0.63 0.51
Asset Quality:
Total Investment to Total Asset Ratio 0.26 0.17 0.23
Managerial Efficiency:
Business per employee (RS) 18,30,54,361.58 16,34,10,991.87 14,25,96,981.88
Profit per employee (RS) 22,44,771.35 2,19,478.74 7,98,519.16
Asset Turnover Ratio 0.09 0.08 0.07
Earning Capabilities:
Return on Equity (%) 15.35 1.91 6.99
Net interest margin 3.67 2.75 3.02
Net Profir Margin 22.3 2.9 11.27
Liquidity:
Cash deposit ratio 5.75 10.1 5.14
Interest Expended to Interest Earned Ratio 50.85 59.63 52.65

7. Conclusion from Fundamental
Analysis
As per the fundamental analysis performed, it is clear that the company is performing
well over the time, taking the COVID-19 situation into consideration. It is expected to
give a good return in the stock market, if an investor is planning to invest for a long-
term purpose.

8. Candlestick
Chart

9. Trend Line

10. Technical Analysis
Candlestick pattern –
upward and downward trend
with bullish and bearish
Harami.
Support Level to short the
stock and Resistance Level to
buy the stock of HDFC Bank
Ltd.
RSI=48.10, MACD= -6.34
Trendline to identify the
trend.

11. Conclusion from Technical Analysis
With all the charts, graphs and statistical data, if we depend on the technical analysis
only, we can summarise that our suggestion is to strong buy this particular stock.
Candlesticks and Support / Resistance level prices are strong indicators to strongly
buy the stock. On the other hand, RSI, MACD values are giving either neutral or
negative signal ore responses. Overall, if we consider all the parameters and
indicators, we can conclude from technical analysis that “Strong Buy” the HDFC
Bank stock.

12. Conclusion
 Increase in working population and growing disposable income will raise the
demand for banking and related services.
 Demand for banking and related services will lead to higher growth rate of HDFC
Bank Ltd.
 If investor is risk averse, they must sell their holding but if investor is likely to
take risk they can hold their positions.