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: 58/100
At a glance
| Metric | HDFCBANK | KOTAKBANK |
|---|---|---|
| Quality Score | 67/100 | 58/100 |
| P/E (trailing) | 17.4 | 19.5 |
| Forward P/E | 12.4 | 13.5 |
| ROE | +13.8% | +11.4% |
| Profit margin | +26.8% | +26.1% |
| Debt-to-equity | — | — |
| Dividend yield | +1.67% | +0.13% |
| 1Y price return | -16.7% | -9.7% |
| From 52w high | -22.3% | -16.7% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.15 | 1.72 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
HDFC Bank trades at ₹779.80 as of the analysis date, down 16.7% over 12 months and 22.3% below its 52-week high, with the price currently above its 50-DMA (₹761) but 11.8% below its 200-DMA (₹884). Trailing PE of 17.4 compresses to a forward PE of 12.4, while ROE of 13.82% and a profit margin of 26.83% reflect the ongoing integration phase following the HDFC Ltd merger completed in 2023.
Kotak Mahindra Bank trades at ₹377.4, 7.1% below its 200-DMA of ₹406.31 and down 9.69% over the past 12 months. Trailing PE of 19.45 sits mid-range among banking peers, while ROE of 11.39% is the second-lowest in the peer group; 5-year revenue contracted 11% though earnings grew 9.8% over the same period, indicating margin expansion accompanied by shrinking top-line volume.
Pros
- ✓Profit margin of 26.83% and positive free cash flow in 4 of the available years demonstrate earnings durability across varying rate cycles.
- ✓Forward PE of 12.4 represents a 29% compression from the trailing PE of 17.4, indicating that consensus earnings growth expectations are already priced into a materially lower multiple.
- ✓The USD 750 million senior unsecured offshore bond issued via GIFT City IFSC in June 2026 — described as the largest such deal by Indian banks since 2023 — points to continued international capital-market access.
- ✓5-year earnings growth of 7.5% has remained positive through the merger integration period, alongside a dividend yield of 1.67%.
- ✓Forward PE of 13.48 vs trailing PE of 19.45 — a 31% compression — reflects analyst consensus expectations of a meaningful earnings step-up in coming periods.
- ✓Profit margin of 26.05% is robust within the banking sector; 5-year earnings growth of 9.8% was achieved against a backdrop of revenue contraction, indicating cost and margin improvement.
- ✓RBI cleared Kotak Bank to acquire stakes of up to 9.99% each in AU Small Finance Bank and Federal Bank (May 2026), providing regulatory-approved inorganic growth optionality.
- ✓36-analyst coverage with a mean rating of 1.72 on a 1–5 scale (lower = more constructive) reflects broadly constructive institutional attention on the stock.
Cons
- ✗ROE of 13.82% has exceeded 15% in only 2 of the available historical years and ranks 4th of 6 banking peers; ICICIBANK (16.36%) and BAJFINANCE (17.91%) both post materially higher returns on equity.
- ✗5-year revenue growth is negative at -1.8%, reflecting top-line compression in the post-merger consolidation period; the quality score of 47 places HDFCBANK 4th of 6 in its peer group.
- ✗The stock has traded below its 200-DMA for an extended period, with a 52-week drawdown of 22.3% and a 12-month price decline of 16.7%, while the broader sector median 1-year change is unavailable for direct comparison.
- ✗Debt trend is classified as rising, which in a banking context merits tracking against net interest margin compression and any shift in the Reserve Bank of India rate posture.
- ✗ROE of 11.39% has not exceeded 15% in any tracked year (roeYearsAbove15 = 0) and ranks 5th of 6 among banking peers; rising debt trend and consistency score of 32 out of 100 underscore an uneven profitability record.
- ✗5-year revenue growth of -11% represents top-line contraction; the gap between trailing PE (19.45) and forward PE (13.48) signals that a substantial earnings recovery is already embedded in current valuations.
- ✗Price has remained below the 200-DMA (₹406.31) with declines of 9.69% over 12 months and 11.76% over 3 months; the stock sits 16.73% below its 52-week high.
- ✗Quality score of 47 ranks 4th of 6 among sector peers; FCF was positive in only 3 of available tracked years, lagging comparables such as Bajaj Finance (53) and HDFC Bank (50) on composite fundamentals.
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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.