KONGU ENGINEERING COLLEGE

PERUNDURAI, ERODE – 638060

(Autonomous)

DEPARTMENT OF MANAGEMENT STUDIES

22MBE01 - SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT

MINI PROJECT

NAME: ABUBAKAR SIDIQ M

REG NO: 22MBR002

CLASS: I MBA – ‘A’

BATCH: 2022 -2024

TOPIC: FUNDAMENTAL AND TECHNICAL ANALYSIS OF

A COMPANY – HDFC BANK
 HDFC BANK

COMPANY OVERVIEW:
HDFC Bank is one of the largest private sector banks in India. It was
established in 1993 as UTI Bank and later rebranded as HDFC Bank in
2007.The bank offers a wide range of financial products and services to its
customers, including retail banking, corporate banking, treasury operations,
and investment banking.

In September 2021, HDFC Bank had a network of over 4,528 branches and
extension counters, along with more than 17,766 ATMs across India. The
bank also has a significant presence in the international market with
branches in countries like Singapore, Hong Kong, Dubai, Shanghai, and
Colombo.

HDFC Bank serves a diverse customer base, including individuals, small

andmedium-sized enterprises (SMEs), large corporates, and government
entities. The bank provides various banking services such as savings and
current accounts, fixed deposits, loans (including home loans, personal
loans, and business loans), credit cards, wealth management, insurance
products, and investment services.

The bank has received several accolades and recognition for its
services and performance. It has been awarded the "Best Bank in India"
multiple times by prominent financial publications. HDFC Bank is known
for its customer-centric approach, technological innovations, and
commitmentto providing seamless banking experiences.
MARKET SUMMARY
FUNDAMENTAL ANALYSIS:

Industry Overview
According to an IBEF report, an increase in the working population and
growing disposable income will raise the demand for banking and related
services in India. The country’s fintech market is expected to reach ₹ 6.2
trillion by 2025.
Services like mobile banking, internet banking, and the extension of
facilities at ATMs will improve operational efficiency, according to the report.
The revenue mix of Indian banks is improving with the help of rising fee
incomes.
According to the Reserve Bank of India (RBI), India’s banking sector is
sufficiently capitalized and well-regulated. The industry has witnessed the
rollout of innovative banking models like payments and small finance banks.
In addition, India has focused on increasing its banking reach through various
schemes like Pradhan Mantri Jan Dhan Yojana and Post payment banks.

HDFC Bank, the third largest private sector bank in India, is one of the
first new-generation private-sector banks that began operations in 1994. It
offers a spectrum of financial services to customer segments covering large
and mid-corporates, MSMEs, and agriculture and retail businesses. It weaves
its presence into its consumers’ financial lives through its vast network of
branches and ATMs.
The bank has a network of 4,758 domestic branches (including
extension counters) with 10,990 ATMs & 5,972 cash recyclers spread across
the country, according to its latest annual report. The overseas operations of
the bank are spread over eight international offices with branches in
Singapore, Dubai (at DIFC), and Gift City-IBU; representative offices in
Dhaka, Dubai, Abu Dhabi, and Sharjah and an overseas subsidiary in London,
UK.
HDFC Bank – Financials

Year 2018 2019 2020 2021 2022

CASA 53.49 44.18 41.01 45.44 44.97

Net NPA 3.4 2.06 1.56 1.05 0.73

Advances Growth 18.02 12.63 15.06 -99.99 15.88

Capital Adequacy Ratio 17 15.84 17.53 19.12 18.54

NIM (%) 2.94 2.96 3.08 3.26 3.05

ROA 0.07 0.67 0.22 0.75 1.29

ROE 0.77 7.65 2.44 7.64 12.78

Key Metrics of HDFC Bank
Particulars Values Particulars Values

Face Value (₹) 2 ROE (%) 12.78

Market Cap (₹ in Cr) 2,86,236.32 Net Profit Margin 20.57

EPS (₹) 45.99 Net NPA 0.73

Stock P/E (TTM) 15.57 CASA Ratio 44.97

Dividend Yield (%) 0.13 Net Interest Margin (%) 3.05

TECHNICAL ANALYSIS:
KEY technical Indicators:
Reverse Head & Shoulder formed by HDFC
BankLtd.

Patterns Details
Fields values

Share Price 980.95

First Shoulder Date 27-Jul-20 00:00

MidPoint Date 29-Jul-20 00:00

Head Date 03-Aug-20 00:00

MidPoint Date 05-Aug-20 00:00

Second Shoulder Date 10-Aug-20 00:00

 HDFC Bank Limited provides various financial products and services.
Itoperates through four segments: easily, Retail Banking,
Corporate/Wholesale Banking, and Other Banking Business. The ľreasury
segment is involved in investments in sovereign and corporate debt, and
equity and mutual funds, as well as in trading operations, derivative trading,
and foreign exchange operations.

The Retail Banking segment engages in the provision of lending

services to individuals/small businesses, liability products, card services,
internet banking, mobile banking, AľM services, depository, financial
advisory services, NRI services, and digital banking services. The
Corporate/Wholesale Banking segment offers corporate advisory,
placements and syndication, project appraisals, trade finance products,
letter of credits, bank guarantees, commercial cards, and cash
management services.

The Other Banking Business segment is involved in para banking

activities. It also offers life and non-life insurance products; and
government small saving schemes and pension schemes. The company
operates multiple branches; AľMs; and recyclers in India. It also has
international offices with branches in Singapore and Dubai, and
representative offices in Dhaka, Dubai, Abu Dhabi, and Sharjah. The
company was formerly known as UľI Bank Limited and changed its name
to HDFC Bank Limited in July 2007. The company was incorporated in
1993and is based in Mumbai, India.
Shareholding Pattern - HDFC Bank Ltd.

Holder's Name No of Shares % Share Holding

No Of Shares 3076852012 100%

Promoters 0 0%

Foreign Institutions 1472600171 47.86%

N banks Mutual Funds 709434695 23.06%

Central Govt 370 0%

Others 146614950 4.77%

General Public 177529659 5.77%

Financial Institutions 251453357 8.17%

GDR 74358165 2.42%

Mutual Ïund June 2023 shareholdings and fund action in
HDFC Bank Ltd.

112 MFs bought and 119 MFs sold HDFC Bank Ltd. in the month of June 2023
fora net change of 10,126,628 stocks.
HDFC BANK PORTFOLIO MANAGEMENT SERVICES
An investing approach called the “HDFC brand equity portfolio” focuses on

choosing businesses with significant “Brand equity.” Long-term capital

growth is the goal of this approach. His investing strategy stands out

because it generates profits and has a promising future.

Firms are acquired under the HDFC Brand equity PMS portfolio, which offers:

• Sustainable Competitive Advantages: Investing in businesses that

outperform rival’s. Strong Management team: The company’s management

team must be capable of driving long-term success for the business.

Corporate governances: The business must uphold moral behavior and

seek to advance the interests of all of its stakeholders.

This strategy’s portfolio’s investing approach is bottom-up, growth-oriented,

and designed with “Buy and Hold” in mind.

This strategy’s time horizon is between three and five years in older to see

a return. Only after waiting for a minimum of three years can an investor

receive a return on their investment.The prospect of a higher return exists

on the higher end of this range.

Outstanding outcomes have been demonstrated by HDFC Brand Equity

PMS Returns. The S&P BSE 200 Index sieves as a benchmark for measuring

the success of the portfolio built using this technique.

The first investment must be at least 50 lakhs, and subsequent investments

must be in multiples of one lakh. Additionally, the minimum new contributions

is 5 lakhs, with subsequent investments coming in multiples of 1 lakh.

HDFC PMS BENEFITS
● The advantages of HDFC PMS’s portfolio management services are as

follows:

● HDFC PMS is a skilled and knowledgeable investment staff that

offerscustomers’ money expert management. Additionally, they

guaranteethese top stocks are long-term investments with effective

risk management.

● The clients receive regular portfolio monitoring services.

Additionally,in order to give customers, the best return possible, the

business analyzes their portfolios. The consumers receive a hassle-

free service from HDFC PMS. They provide clients top-notch

customer service to help them with their problems.

● Investors get regular portfolio reports and updates. Additionally,

theymake it simple for clients to keep tabs on the success of the

portfolio.

● It is possible to create a unique investing portfolio.

● The organizationoffers a variety of techniques and flexible

investment programs for the benefit of its clients.

Investment Philosophy
Buy companies with well-known brands that provide: long term competitive

advantage, stellar management team and good corporate governance.

Brands are a result of: deep connection with the customer, Differentiated

positioning, Distinguishable quality, Consistency in the delivery of good

performance and Innovation.

Brands have a strong recall value. Companies with strong brands wield a

unique bargaining card due to huge scale, high barriers for entry and strong

pricing power. This enables large margins and huge growth potential. This

results in consistent high returns over long terms.