Comparison
Fundamental analysis of the two stocks involves evaluating each company’s financial metrics, such as revenue, profit margins, debt-to-equity ratio, and valuation multiples, to determine their risk and potential return.
HDFC Bank
Revenue: Rs. 113368.55 Crores
Net Profit: Rs. 31692.29 Crores
Debt-to-Equity Ratio: 0.45
Valuation Multiples: P/E – 46.72, P/B – 8.51
HDFC Ltd
Revenue: Rs. 29395.98 Crores
Net Profit: Rs. 3667.69 Crores
Debt-to-Equity Ratio: 0.37
Valuation Multiples: P/E – 16.36, P/B – 3.45
From the data above, it is clear that HDFC Bank has higher revenue, profits, and valuation multiples than HDFC Ltd. The company’s debt-to-equity ratio of 0.45 is also lower than the latter’s 0.37, indicating that it has a healthier financial position. Hence, HDFC Bank stock may be the better choice for investors looking for higher returns with reduced risk.