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HDB (HDFC Bank) Piotroski F-Score : 6 (As of Oct. 31, 2024)


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What is HDFC Bank Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

HDFC Bank has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for HDFC Bank's Piotroski F-Score or its related term are showing as below:

HDB' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 5   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of HDFC Bank was 8. The lowest was 5. And the median was 5.


HDFC Bank Piotroski F-Score Historical Data

The historical data trend for HDFC Bank's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

HDFC Bank Piotroski F-Score Chart

HDFC Bank Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 7.00 5.00 5.00 6.00

HDFC Bank Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 - 5.00 - 6.00

Competitive Comparison of HDFC Bank's Piotroski F-Score

For the Banks - Regional subindustry, HDFC Bank's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


HDFC Bank's Piotroski F-Score Distribution in the Banks Industry

For the Banks industry and Financial Services sector, HDFC Bank's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where HDFC Bank's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was $7,500 Mil.
Cash Flow from Operations was $12,314 Mil.
Revenue was $23,933 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was (313075.48 + 531412.058) / 2 = $422243.769 Mil.
Total Assets at the begining of this year (Mar23) was $313,075 Mil.
Long-Term Debt & Capital Lease Obligation was $81,663 Mil.
Total Assets was $531,412 Mil.
Total Liabilities was $436,422 Mil.
Net Income was $6,022 Mil.

Revenue was $14,652 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was (277120.572 + 313075.48) / 2 = $295098.026 Mil.
Total Assets at the begining of last year (Mar22) was $277,121 Mil.
Long-Term Debt & Capital Lease Obligation was $25,064 Mil.
Total Assets was $313,075 Mil.
Total Liabilities was $277,607 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

HDFC Bank's current Net Income (TTM) was 7,500. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

HDFC Bank's current Cash Flow from Operations (TTM) was 12,314. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=7499.953/313075.48
=0.02395573

ROA (Last Year)=Net Income/Total Assets (Mar22)
=6022.462/277120.572
=0.02173228

HDFC Bank's return on assets of this year was 0.02395573. HDFC Bank's return on assets of last year was 0.02173228. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

HDFC Bank's current Net Income (TTM) was 7,500. HDFC Bank's current Cash Flow from Operations (TTM) was 12,314. ==> 12,314 > 7,500 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=81663.463/422243.769
=0.1934036

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=25063.608/295098.026
=0.08493316

HDFC Bank's gearing of this year was 0.1934036. HDFC Bank's gearing of last year was 0.08493316. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Mar24)=Total Assets/Total Liabilities
=531412.058/436422.298
=1.21765561

Current Ratio (Last Year: Mar23)=Total Assets/Total Liabilities
=313075.48/277607.363
=1.1277636

HDFC Bank's current ratio of this year was 1.21765561. HDFC Bank's current ratio of last year was 1.1277636. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

HDFC Bank's number of shares in issue this year was 2369.151. HDFC Bank's number of shares in issue last year was 1862.391. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=7499.953/23932.797
=0.31337553

Net Margin (Last Year: TTM)=Net Income/Revenue
=6022.462/14652.076
=0.41103131

HDFC Bank's net margin of this year was 0.31337553. HDFC Bank's net margin of last year was 0.41103131. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=23932.797/313075.48
=0.07644418

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=14652.076/277120.572
=0.05287257

HDFC Bank's asset turnover of this year was 0.07644418. HDFC Bank's asset turnover of last year was 0.05287257. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+0+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

HDFC Bank has an F-score of 6 indicating the company's financial situation is typical for a stable company.

HDFC Bank  (NYSE:HDB) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


HDFC Bank Piotroski F-Score Related Terms

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HDFC Bank Business Description

Address
Senapati Bapat Marg, HDFC Bank House, Lower Parel (West), Mumbai, MH, IND, 400013
HDFC Bank Ltd is an Indian bank. It operates in the following segments; Treasury, Retail banking, Wholesale banking, and Other banking business. The maximum revenue for the company is generated from its Retail banking segment which serves retail customers through its branch network and other channels. This segment raises customer deposits and provides loans and other services to customers using different product groups. Its other operations include providing wholesale banking services to corporates, government entities, and other enterprises, generating income from its treasury operations, and performing para banking activities such as offering credit cards, debit cards, etc. Geographically, the company generates a majority of its revenue from its operations in India.

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