The company runs under
Banks sector within
Financials industry.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. HDFC Bank has an asset utilization ratio of 4.83 percent. This suggests that the company is making $0.0483 for each dollar of assets. An increasing asset utilization means that HDFC Bank Limited is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in HDFC Bank, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding HDFC Bank along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of HDFC Bank's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is HDFC Bank's Liquidity
HDFC Bank
financial leverage refers to using borrowed capital as a funding source to finance HDFC Bank Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HDFC Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to HDFC Bank's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of HDFC Bank's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between HDFC Bank's total debt and its cash.
HDFC Bank Gross Profit
HDFC Bank Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing HDFC Bank previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show HDFC Bank Gross Profit growth over the last 10 years. Please check HDFC Bank's
gross profit and other
fundamental indicators for more details.
HDFC Bank Correlation with Peers
Investors in HDFC can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in HDFC Bank Limited. Diversification will allow for the same portfolio return with reduced risk. The correlation table of HDFC Bank and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities HDFC is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of HDFC for more details
Is HDFC Bank valued fairly by the market?
HDFC Bank appears to be very steady, given 3 months investment horizon.
HDFC Bank Limited holds Efficiency (Sharpe) Ratio of 0.15, which attests that the entity had 0.15% of return per unit of return volatility over the last 3 months. Our approach into determining the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for HDFC Bank Limited, which you can use to evaluate the future volatility of the firm. Please utilize HDFC Bank's Semi Deviation of 1.08,
market risk adjusted performance of 0.4225, and Risk Adjusted Performance of 0.2419 to validate if our risk estimates are consistent with your expectations.
Will HDFC Bank pull back in February 2023?
Current variance is at 1.83.
As of the 14th of January 2023, HDFC Bank retains the Risk Adjusted Performance of 0.2419,
semi deviation of 1.08, and Market Risk Adjusted Performance of 0.4225. HDFC Bank
technical analysis makes it possible for you to employ
historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down nineteen
technical drivers for HDFC Bank Limited, which can be compared to its competitors. Please check out
HDFC Bank Limited information ratio,
value at risk, and the
relationship between the
standard deviation and
treynor ratio to decide if HDFC Bank is priced more or less accurately, providing market reflects its last-minute price of 67.52 per share. Given that HDFC Bank Limited has
jensen alpha of 0.1137, we strongly advise you to confirm HDFC Bank Limited's regular market performance to make sure the company can sustain itself in the future.
Our Conclusion on HDFC Bank
Whereas few other entities under the banks—regional industry are still a bit expensive, HDFC Bank may offer a potential longer-term growth to investors. On the whole, as of the 14th of January 2023, our analysis shows that HDFC Bank follows the market closely. The company is
undervalued and projects
below average probability of bankruptcy for the next 2 years. Our current 90 days buy vs. sell advice on the company is
Strong Buy.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of HDFC Bank Limited. Please refer to our
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