HDFC Bank's intrinsic value using Intellectual Capital analysis

HDFC Bank

BSE : 500180

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NSE : HDFCBANK

Industry : Bank Pvt sector

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ISIN : INE040A01034

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FreeFloat : 80.00%

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FnO : Yes

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LotSize : 550

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty Alpha Quality Low Volatility 30 | Nifty Alpha Quality Value Low Voltlty 30 | Nifty Quality Low Volatility 30 | BSE BANKEX | BSE Private Bank | Nifty Bank | Nifty Financial Services | Nifty Financial Services 25/50 | Nifty Private Bank | BSE Dividend Stability | Nifty Growth Sectors 15 | Nifty Low Volatility 50 | Nifty100 Low Volatility 30 | Nifty100 Quality 30 | BSE 100 ESG | BSE CARBONEX | Nifty100 Enhanced ESG | Nifty100 ESG | BSE Diversfied Financials Rev Growth | Nifty Services Sector

Intellectual Capital (IC)	296,024.90
Net Worth (NW)	210,442.90
Intrinsic Worth (IW)	506,467.90
Market Cap (MC)	823,415.90
Economic Value Added	6,176.65

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	58.45%
IC Gross Margin (EBITDA/IC)	36.47%
IC Net Margin (NPT/IC)	11.79%
Knowledge Turnover (Sales/IC)	0.46
Market to Intrinsic Value (MC/IW)	1.63

As Of	Intrinsic Value	Market Price
31 Mar 2021	Rs. 918.72	Rs. 1,493.65
12 May 2021	-	Rs. 1,399.50

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 1,412.88	Sell	Avoid
KB > 50% : Yes		50 DMA : Rs. 1,469.91
0 < M2IV < 1 : No		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Jun-18
C
23978.67
28000.06
19833.30
19833.30
7419.93
4820.13
4808.35

Sep-18
C
25702.74
30124.49
21433.23
21433.23
8257.99
5417.10
5322.41

Dec-18
C
27434.29
32722.77
23119.47
23119.47
9056.95
5897.87
5900.87

Mar-19
C
28045.05
33260.48
23644.86
23644.86
9583.30
6310.52
6300.81

Jun-19
C
29176.45
34324.45
23811.98
23811.98
8834.83
5690.80
5676.06

Sep-19
C
30016.88
36130.96
24987.43
24987.43
9428.99
6648.80
6638.03

Dec-19
C
31200.92
38325.70
26322.45
26322.45
10249.18
7659.96
7659.65

Mar-20
C
31795.05
38287.17
25210.43
25210.43
9681.86
7296.71
7280.22

Jun-20
C
32351.61
36698.59
24948.00
24948.00
9339.51
6940.88
6927.24

Sep-20
C
31742.27
38438.47
25410.88
25410.88
10377.70
7711.37
7702.86

Dec-20
C
31851.60
39838.73
26335.88
26335.88
11813.20
8760.19
8769.33

Mar-21
C
32606.92
40909.49
25348.97
25348.97
11265.73
8444.33
8433.78

* C - Consolidated, S - Standalone