HDFC Bank (MEX:HDBN) Beneish M-Score: -2.28 (As of Jun. 24, 2026)


MEX:HDBN HDFC Bank Ltd MEX:HDBN
66 GF Score
Price MXN410.00
GF Value MXN501.84
Valuation Modestly Undervalued
! 3 Warning Signs
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What is HDFC Bank Beneish M-Score?

HDFC Bank MEX:HDBN 66 Beneish M-Score is -2.28 as of Jun. 24, 2026. GuruFocus rates MEX:HDBN with a GF Score™ of 66/100 and a GF Value™ of MXN501.84 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,396 Banks companies, HDFC Bank ranks worse than 69.99% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:HDBN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.29   Max: -1.05
Current: -2.28

During the past 13 years, the highest Beneish M-Score of HDFC Bank was -1.05. The lowest was -3.04. And the median was -2.29.

MEX:HDBN
66GF Score
HDFC Bank Ltd MEX:HDBN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

HDFC Bank Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of HDFC Bank for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0468+0.528 * 1+0.404 * 0.9995+0.892 * 1.355+0.115 * 0.9785
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9069+4.679 * -0.010835-0.327 * 0.813
=-2.10

* 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 (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was MXN107,502 Mil.
Revenue was MXN434,751 Mil.
Gross Profit was MXN434,751 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN11,394,095 Mil.
Property, Plant and Equipment(Net PPE) was MXN74,420 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN14,902 Mil.
Selling, General, & Admin. Expense(SGA) was MXN139,982 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN1,423,466 Mil.
Net Income was MXN159,253 Mil.
Gross Profit was MXN0 Mil.
Cash Flow from Operations was MXN282,707 Mil.
 Total Receivables was MXN75,789 Mil.
Revenue was MXN320,839 Mil.
Gross Profit was MXN320,839 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN8,819,450 Mil.
Property, Plant and Equipment(Net PPE) was MXN53,641 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN10,465 Mil.
Selling, General, & Admin. Expense(SGA) was MXN113,904 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN1,355,308 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(107502.034 / 434751.256) / (75788.913 / 320838.561)
=0.247273 / 0.236221
=1.0468

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(320838.561 / 320838.561) / (434751.256 / 434751.256)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 74419.944) / 11394094.558) / (1 - (0 + 53640.642) / 8819450.018)
=0.993469 / 0.993918
=0.9995

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=434751.256 / 320838.561
=1.355

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(10464.6 / (10464.6 + 53640.642)) / (14901.543 / (14901.543 + 74419.944))
=0.163241 / 0.16683
=0.9785

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(139982.094 / 434751.256) / (113904.282 / 320838.561)
=0.321982 / 0.355021
=0.9069

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1423465.947 + 0) / 11394094.558) / ((1355307.651 + 0) / 8819450.018)
=0.12493 / 0.153673
=0.813

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(159252.711 - 0 - 282706.705) / 11394094.558
=-0.010835

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

HDFC Bank has a M-score of -2.10 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.28 mean?
HDFC Bank (MEX:HDBN) has a Beneish M-Score of -2.28 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on HDFC Bank and its competitors. According to the industry distribution chart, HDFC Bank ranks #977 out of 1396 companies in the Banks industry, placing it in the top 70%.
Is HDFC Bank's Beneish M-Score too high?
HDFC Bank's current Beneish M-Score is -2.28. Based on the distribution chart, HDFC Bank ranks #977 out of 1396 companies in the Banks industry, which is below the industry midpoint. Overall, HDFC Bank has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Bank's Beneish M-Score compare to PNC?
According to the Banks industry distribution chart, HDFC Bank ranks #977 out of 1396 companies for Beneish M-Score. This places HDFC Bank in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on HDFC Bank and its competitors. HDFC Bank's current Beneish M-Score is -2.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDFC Bank stock overvalued right now?
Based on GuruFocus' analysis, HDFC Bank (MEX:HDBN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN501.84, compared to a current price of MXN410.00 — trading 18.3% below its estimated fair value. The current Beneish M-Score is -2.28. HDFC Bank's overall GF Score™ is 66/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For HDFC Bank (MEX:HDBN), the current Beneish M-Score is -2.28 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is HDFC Bank (MEX:HDBN) Overvalued in 2026?

Based on GuruFocus' analysis, HDFC Bank stock appears to be undervalued. The current stock price of MXN410.00 is trading 18.3% below its estimated GF Value™ of MXN501.84. GuruFocus considers HDFC Bank to be Modestly Undervalued.

Key valuation signals for MEX:HDBN:

  • Beneish M-Score: -2.28
  • GF Value™: MXN501.84 vs. price of MXN410.00 (18.3% below fair value)
  • GF Score™: 66/100 with 3 warning signs

No single metric tells the full story. See the MEX:HDBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

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.
66GF Score

Get the complete analysis for MEX:HDBN

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN410.00
Price
MXN501.84
GF Value