HDFC Bank Limited (HDB): one to watch?

Cheap-looking bank stock hit by a real (not fake) profit-margin problem — wait for evidence the margin squeeze is stabilizing before buying.

👀 WATCH Fundamentals62/100

Fell 11% in 1 trading day(s) — now $23.60

Why HDB dropped

The drop was triggered by HDFC Bank's Q1 FY27 (June-quarter) earnings released over the weekend: profit grew only about 5% year-over-year and, more importantly, its net interest margin (the spread between what it earns on loans and pays on deposits) compressed to roughly 3.26-3.40%, a meaningful sequential decline, while its loan-to-deposit and liquidity ratios also looked stretched.

Fwd P/E 16.6Op margin 33.3%Rev growth 16.6%Debt/equity —Analyst upside 43.9%

How this scored 62/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 26.8%

✅ Generates cash Free cash flow unknown

✅ Not drowning in debt Debt/equity unknown — exempt (banks run on leverage by design)

✅ Can pay its bills Exempt (financials)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 21/25

Operating margin 33.3% 9/9

Net profit margin 26.8% 8/8

Return on equity 13.8% 4/8

Growth Is it getting bigger, or dying? 14/25

Revenue growth 16.6% 6/9

Earnings growth 18.1% 6/8

Expected profit change -0.3% 2/8

Value Is it cheap right now? 19/25

Forward P/E 16.6 7/10

PEG ratio 1.0 6/8

Analyst target upside 43.9% 5/7

Balance sheet Will it survive? 8/25

Debt / equity unknown 3/10

Current ratio unknown 2/8

Free cash flow unknown 2/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-21. Research only — not financial advice.