HDFC BankMEX:HDBN 66 ROE % is 8.99% as of Mar. 2025, which is 41% below its 10-year median of 15.26. 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 1,524 Banks companies, HDFC Bank ranks worse than 57.28% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. HDFC Bank's annualized net income for the quarter that ended in Mar. 2025 was MXN158,399 Mil. HDFC Bank's average Total Stockholders Equity over the quarter that ended in Mar. 2025 was MXN1,761,138 Mil. Therefore, HDFC Bank's annualized ROE % for the quarter that ended in Mar. 2025 was 8.99%.
The historical rank and industry rank for HDFC Bank's ROE % or its related term are showing as below:
MEX:HDBN'
s ROE % Range Over the Past 10 Years
Min: 9.21 Med: 15.26 Max: 18.29
Current: 9.23
During the past 13 years, HDFC Bank's highest ROE % was 18.29%. The lowest was 9.21%. And the median was 15.26%.
MEX:HDBN's ROE % is ranked worse than 57.28% of 1524
companies
in the Banks industry
Industry Median: 10.22
vs MEX:HDBN: 9.23
HDFC Bank (MEX:HDBN) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Mar. 2025) net income data. The Revenue data used here is two times the semi-annual (Mar. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
HDFC Bank ROE % Related Terms
HDFC Bank ROE % Historical Data
* Premium members only.
The historical data trend for HDFC Bank's ROE % 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.
For the Banks - Regional subindustry, HDFC Bank's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Banks Industry
For the Banks industry and Financial Services sector, HDFC Bank's ROE % distribution charts can be found below:
* The bar in red indicates where HDFC Bank's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2025) net income data.
ROE % is displayed in the 30-year financial page.
HDFC Bank (MEX:HDBN) has a ROE % of 8.99% as of Mar. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HDFC Bank and its competitors. This is 41% below median its historical median of 15.26. Over the past decade, HDFC Bank's ROE % has ranged from 9.21 to 18.29. According to the industry distribution chart, HDFC Bank ranks #873 out of 1524 companies in the Banks industry, placing it in the top 57.3%.
Is HDFC Bank's ROE % too high?
HDFC Bank's current ROE % of 8.99% is 41% below median its 10-year median of 15.26. Over the past 10 years, this metric has ranged from a low of 9.21 to a high of 18.29. The Banks industry median ROE % is 10.22. HDFC Bank's value of 8.99% is 12% below this industry median. Based on the distribution chart, HDFC Bank ranks #873 out of 1524 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 ROE % compare to PNC?
According to the Banks industry distribution chart, HDFC Bank ranks #873 out of 1524 companies for ROE %. This places HDFC Bank in the lower half of its industry. The industry median ROE % is 10.22. HDFC Bank's value of 8.99% is 12% below this benchmark. Historically, HDFC Bank's own ROE % has ranged from 9.21 to 18.29 over the past decade. While the company's 10-year median is 15.26 vs. the industry median of 10.22, HDFC Bank has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDFC Bank's current ROE % of 8.99% is 12% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on HDFC Bank and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Bank's current ROE % is 8.99%, which is 41% below median its own 10-year median of 15.26. 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 ROE % is 8.99%, which is 41% below median its 10-year median of 15.26 and 12% below the Banks industry median of 10.22. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For HDFC Bank (MEX:HDBN), the current ROE % is 8.99% as of Mar. 2025. 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:
ROE %: 8.99% (41% below median its 10-year median of 15.26)
GF Value™: MXN501.84 vs. price of MXN410.00 (18.3% below fair value)
Industry Position: 12% below the Banks median (#873 of 1524)
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 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
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