HDFCBANK vs KOTAKBANK
Side-by-side comparison of HDFC Bank Ltd. and Kotak Mahindra Bank Ltd.. Descriptive only — not investment advice.
HDFC Bank Ltd.
Banking
Quality Score: 67/100
Kotak Mahindra Bank Ltd.
Banking
Quality Score: 57/100
At a glance
| Metric | HDFCBANK | KOTAKBANK |
|---|---|---|
| Quality Score | 67/100 | 57/100 |
| P/E (trailing) | 17.4 | 19.7 |
| Forward P/E | 12.4 | 11.9 |
| ROE | +13.8% | +11.4% |
| Profit margin | +26.8% | +26.1% |
| Debt-to-equity | — | — |
| Dividend yield | +1.66% | +0.13% |
| 1Y price return | -18.1% | -8.1% |
| From 52w high | -23.5% | -16.0% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.16 | 1.72 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
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.
Kotak Bank (₹380.80) trades below both its 50-DMA (₹381.25) and 200-DMA (₹408.45), down 8.09% over 12 months and 15.98% from its 52-week high. The bank delivered a Q4 earnings beat but ROE of 11.39% — the lowest among six tracked peers — has drawn market scrutiny, and 5-year revenue growth of -11% contrasts with positive 5-year earnings growth of 9.8%. A notable recent development is RBI approval for Kotak Bank to acquire up to 9.99% stakes each in AU Small Finance Bank and Federal Bank.
Pros
- ✓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.
- ✓Forward PE of 11.94 is materially below the trailing PE of 19.66, implying earnings are expected to grow significantly in the near term relative to current price.
- ✓Profit margin of 26.05% is substantial in absolute terms, and the bank delivered a Q4 earnings beat per recent news coverage.
- ✓5-year earnings growth of 9.8% is positive despite a period of top-line contraction, reflecting some degree of cost discipline or margin management.
- ✓Mean analyst rating of 1.72 across 35 analysts (1-5 scale, lower = more constructive), with 8 news articles tilting 5-positive-to-2-negative in recent weeks.
Cons
- ✗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.
- ✗ROE of 11.39% ranks 5th of 6 peers and has not exceeded 15% in any tracked year; peers Bajaj Finance (17.91%), Axis Bank (13.15%), and HDFC Bank (13.82%) all record higher returns on equity.
- ✗5-year revenue growth of -11% points to top-line contraction over the medium term; debt trend is classified as rising and the consistency score of 32 out of 100 is low.
- ✗Price remains below both the 50-DMA (₹381.25) and the 200-DMA (₹408.45) with the stock 15.98% off its 52-week high; the nearest resistance cluster at ₹386.45-386.85 is only 1.5-1.6% above current price.
- ✗FCF was positive in only 3 of tracked years, and with debtToEquity unavailable, the rising debt trend cannot be precisely quantified — a data limitation that makes leverage assessment incomplete.
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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.