ROE analysis of HDFC Bank Ltd., FY Ratio 15.94 (2024)

FAQs

ROE analysis of HDFC Bank Ltd., FY Ratio 15.94? ›

ROE Ratio of HDFC Bank Ltd. with value of 17.20 means its generates profits efficiently by using its Shareholders Fund. ROE Ratio of HDFCBANK has fallen by -11.45 % Compared to previous Financial Year. ROE Ratio with value of 15.94 was highest in Year Mar-23 in last Five Years.

HDFC Bank (HDFC Bank) ROE % : 18.86% (As of Dec. 2023)

It is a measure of the ability of management to generate income from the equity available to it. A return of between 15-20% is considered good.

The return on equity (ROE) metric reveals how effectively a corporation is generating profit from the money that investors have put into the business. ROE is calculated by dividing net income by total shareholders' equity.

An ROE of 15-20% is considered good. A value above 20% can indicate very strong performance, but it can also be an indication that company management has increased the business's exposure to risk by borrowing against company assets. An ROE of 15-20% is considered good.

For some industries, an ROE of more than 25% is desirable, while for others, a figure over 15% may be considered exceptional. However, a lower ROE does not always indicate impending catastrophe for a business.

Compared to the current market price of 1 559.95 INR, HDFC Bank Ltd is Undervalued by 13%.

There are 20 analysts who have given it a strong buy rating & 17 analysts have given it a buy rating.

Is 15% a good ROE? ›

While average ratios, as well as those considered “good” and “bad”, can vary substantially from sector to sector, a return on equity ratio of 15% to 20% is usually considered good.

A good ROE ratio is between 15% and 20%; an excellent ROE is 40%. The NYU Stern School of Business maintains return on equity by sector statistics before and after adjusting it for R&D. The unadjusted average ROE for the total U.S. market of 7,229 companies in January 2022 was 18.12%.

On average, the solid Return on Equity ratio in tier-1 economies is about 10-12%. In countries with higher inflation, the indicator should be higher too – about 20-30%. To assess investment attractiveness, one can compare the ROE ratio of the chosen company with investments in such instruments as bonds or deposits.

From the above chart, it is observed that HDFC Bank is 0.40 in the year of 2019, 0.40 in the year of 2020, 0.39 in the year of 2021, 0.92 in the year of 2022, and 0.93 in the year of 2023. The current ratio has displayed a stable trend, consistently maintaining a healthy level of 0.35 over the past few years.

HDFC Bank (HDFC Bank) ROA % : 2.13% (As of Dec. 2023)

P/E ratio as of June 2024 (TTM): 19.5

According to HDFC Bank's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 19.4968. At the end of 2020 the company had a P/E ratio of 32.5.

Based on ICICI Bank Ltd's most recent financial statements, the company has ROE of 18.8%.