Investing in the stock market can be a lucrative way to grow your wealth over time. HDFC Bank Ltd, one of India’s premier banking institutions, has been a strong performer in the Indian stock market.
This article provides a detailed analysis of how much an investment of ₹10,000 in HDFC Bank Ltd five years ago would be worth today, using financial data from the provided document and historical stock prices.
On June 7, 2019, the stock price of HDFC Bank Ltd was ₹1224.00 per share. By June 6, 2024, the stock price had risen to ₹1559.45 per share.
Calculation of Investment Growth
To calculate the growth of an investment of ₹10,000 made five years ago, we can use the following steps:
Therefore, an investment of ₹10,000 in HDFC Bank Ltd shares on June 7, 2019, would be worth approximately ₹12,742.87 on June 6, 2024.
HDFC Bank Investment Calculator
Financial Performance of HDFC Bank Ltd
To provide a more comprehensive understanding of HDFC Bank’s performance, let’s delve into key financial metrics from the balance sheet, cash flow statement, and key performance indicators.
Balance Sheet Overview
| Year (in Rs. Cr.) | Mar 24 | Mar 23 | Mar 22 | Mar 21 | Mar 20 |
|---|---|---|---|---|---|
| Total Shareholders’ Funds | 437,593.08 | 280,199.01 | 240,092.94 | 203,720.83 | 170,986.03 |
| Deposits | 2,379,786.28 | 1,883,394.65 | 1,559,217.44 | 1,335,060.22 | 1,147,502.29 |
| Borrowings | 662,153.07 | 206,765.57 | 184,817.21 | 135,487.32 | 144,628.54 |
| Total Capital & Liabilities | 3,617,623.06 | 2,466,081.47 | 2,068,535.05 | 1,746,870.52 | 1,530,511.26 |
| Advances | 2,484,861.52 | 1,600,585.90 | 1,368,820.93 | 1,132,836.63 | 993,702.88 |
Cash Flow Statement
| Year (in Rs. Cr.) | Mar 24 | Mar 23 | Mar 22 | Mar 21 | Mar 20 |
|---|---|---|---|---|---|
| Net Profit Before Tax | 70,895.30 | 58,485.30 | 49,015.48 | 41,658.98 | 36,607.15 |
| Net Cash Flow From Operating Activities | 35,014.96 | 27,313.41 | -14,208.72 | 41,494.79 | -16,689.78 |
| Net Cash Used In Investing Activities | 7,094.17 | -2,428.88 | -1,291.60 | -1,120.17 | -1,104.92 |
| Net Cash Used From Financing Activities | -22,236.94 | 16,121.92 | 48,191.75 | -7,381.11 | 22,851.79 |
| Net Increase/Decrease in Cash and Cash Equivalents | 19,973.45 | 41,438.16 | 32,856.53 | 32,851.68 | 5,271.08 |
Key Performance Indicators
| Metric | Mar 24 | Mar 23 | Mar 22 | Mar 21 | Mar 20 |
|---|---|---|---|---|---|
| Basic EPS (₹) | 85.83 | 79.25 | 66.80 | 56.58 | 48.01 |
| Diluted EPS (₹) | 85.44 | 78.89 | 66.35 | 56.32 | 47.66 |
| Book Value/Share (₹) | 576.02 | 502.17 | 432.95 | 369.54 | 311.83 |
| Return on Equity (%) | 13.89 | 15.74 | 15.39 | 15.27 | 15.35 |
| Net Profit Margin (%) | 23.53 | 27.29 | 28.93 | 25.74 | 22.86 |
| Return on Assets (%) | 1.68 | 1.78 | 1.78 | 1.78 | 1.71 |
| Price to Book Value (X) | 2.51 | 3.21 | 3.40 | 4.04 | 2.76 |
| Net Interest Margin (X) | 3.00 | 3.52 | 3.48 | 3.71 | 3.67 |
Dividend Payouts
HDFC Bank has also been consistent in paying dividends, which adds to the overall return on investment. Here are the dividends per share for the past five years:
- 2024: ₹19.50
- 2023: ₹19.00
- 2022: ₹15.50
- 2021: ₹6.50
- 2019: ₹20.00 (including a special interim dividend of ₹5.00)
Total Returns
To determine the total returns, we need to consider both capital gains and dividend payouts.
Thus, the total value of the investment today, including both capital gains and dividends, would be:
Conclusion
Investing ₹10,000 in HDFC Bank Ltd five years ago would have grown to approximately ₹17,966.02 today, considering both capital appreciation and dividend income.
This demonstrates a significant return on investment, underscoring the bank’s robust financial health and consistent performance.
HDFC Bank Ltd has showcased impressive growth in its balance sheet figures, maintaining strong financial metrics, and providing consistent dividends, making it a valuable investment for shareholders.
With its strategic expansions and financial prudence, HDFC Bank continues to be a reliable choice for investors looking for stable and substantial returns.