AXISBANK vs HDFCBANK
Side-by-side comparison of Axis Bank Ltd. and HDFC Bank Ltd.. Descriptive only — not investment advice.
Axis Bank Ltd.
Banking
Quality Score: 62/100
HDFC Bank Ltd.
Banking
Quality Score: 67/100
At a glance
| Metric | AXISBANK | HDFCBANK |
|---|---|---|
| Quality Score | 62/100 | 67/100 |
| P/E (trailing) | 15.0 | 17.4 |
| Forward P/E | 10.0 | 12.4 |
| ROE | +13.2% | +13.8% |
| Profit margin | +35.4% | +26.8% |
| Debt-to-equity | — | — |
| Dividend yield | +0.08% | +1.66% |
| 1Y price return | +9.3% | -18.1% |
| From 52w high | -10.6% | -23.5% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.27 | 1.16 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Axis Bank trades at ₹1,268.3, up 9.3% over 12 months, with a trailing PE of 15.03 and ROE of 13.15% — the lowest PE in its 6-stock Banking peer set and below ICICI Bank's ROE of 16.36%. The stock sits above its 200-DMA (₹1,227.63) but below its 50-DMA (₹1,293.7), with RSI at 43.82, and is 10.58% off its 52-week high. Five-year revenue growth is -11.2%, while 5-year earnings growth is +6.4%, reflecting a divergence between top-line and bottom-line trends.
HDFCBANK is India's largest private sector bank by assets, currently trading at ₹780.85 — down 18.06% over the past year and 23.48% off its 52-week high — below both its 50-DMA (₹810.56) and 200-DMA (₹933.35). The trailing PE stands at 17.43 with a forward PE of 12.41, reflecting consensus expectations of earnings acceleration. A 5-year earnings CAGR of 7.5% and a dividend yield of 1.66% characterise the fundamental backdrop.
Pros
- ✓Lowest PE among Banking peers at 15.03, compared to ICICI Bank at 16.96, HDFC Bank at 17.43, Bajaj Finance at 31.32, and Bajaj Finserv at 30.32 — a notable valuation gap on this metric.
- ✓Forward PE of 10 represents a significant compression from the trailing PE of 15.03, implying consensus earnings growth expectations embedded in current prices.
- ✓Profit margin of 35.41% is the primary driver of a positive earnings growth rate (+6.4% over 5 years) despite declining revenue, indicating cost discipline or improving credit provisions.
- ✓Analyst coverage is broad: mean rating of 1.275 across 40 analysts (1–5 scale, lower = more constructive).
- ✓Forward PE of 12.41 represents a 28.7% compression from the trailing PE of 17.43, implying a significant implied earnings-growth step-up priced in by the analyst consensus of 1.16 across 38 analysts (1–5 scale, lower = more constructive).
- ✓FCF was positive in 4 of the available historical years, and profit margin of 26.83% remains among the higher levels for large-cap Indian banking.
- ✓5-year earnings growth of 7.5% demonstrates sustained bottom-line expansion through a period that included a large-scale merger integration with HDFC Ltd.
- ✓Dividend yield of 1.66% provides a current income component at a trailing PE of 17.43, which sits at the lower end of HDFCBANK's historical valuation range.
Cons
- ✗ROE of 13.15% has exceeded 15% in only 1 of the tracked historical years, and the consistency score stands at 46, ranking 5th of 6 peers — below ICICI Bank (16.36%), Bajaj Finance (17.91%), and HDFC Bank (13.82%).
- ✗Five-year revenue growth of -11.2% represents the most concerning structural data point; even with positive earnings growth, a shrinking revenue base constrains long-run compounding capacity.
- ✗FCF was positive in only 2 of the available years, and the debt trend is flagged as rising; without D/E or capital-adequacy data, the full leverage picture remains opaque.
- ✗The stock has declined 5.26% over the past 3 months and trades below its 50-DMA, while sitting 10.58% below the 52-week high — a period of underperformance relative to its own recent history.
- ✗The stock has been below its 200-DMA for an extended period, with price trading 16.3% below the 200-DMA (₹933.35) and a 52-week drawdown of 23.48%, reflecting sustained price underperformance.
- ✗ROE of 13.82% cleared the 15% threshold in only 2 of the available historical years, and 5-year revenue growth of -1.8% signals top-line contraction over the measurement window — likely reflecting merger-related balance sheet restructuring but material nonetheless.
- ✗Quality score of 47 and ROE rank of 4th out of 6 peers place HDFCBANK below sector peers ICICIBANK (quality 64, ROE 16.36%) and BAJFINANCE (ROE 17.91%) on composite quality metrics.
- ✗Consistency score of 69 and a rising debt trend, assessed alongside the post-merger balance sheet, warrant monitoring of NIM trajectory and deposit cost data in upcoming quarterly disclosures.
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For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Comparison reflects current public data; consult a registered adviser before any investment decision.