Last week, the stock exchanges saw some serious dips in the market valuations of 6 of its top 10 companies. Out of them, HDFC Bank stood out with the highest slag of Rs. 43,578.18 crores to stand at Rs. 797422.67 crores on Friday.
Other companies like Hindustan Unilever Ltd., Reliance Industries Ltd., Kotak Mahindra Bank, and State Bank of India followed suit with significant dips in their market capitalisation. Resultantly, the 30-share BSE benchmark saw a 0.30% dip to lose 164.26 points.
HDFC Bank’s Latest Whereabouts
One of India’s leading private sector banks, HDFC Bank Ltd., offers a wide range of financial products and services, comprising transaction, investment, and commercial banking.
Here are a few insights into the bank’s key operations –
- HDFC Bank Ltd. operated across 2866 locations in India as of 31 December 2021.
- During this period, its distribution networks included 15541 ATMs and CDMs, and 5485 physical branches.
- Plus, the bank also operates overseas with its presence in Hong Kong, Kenya, Bahrain, and UAE.
Although the slag in business activities due to COVID-19’s second wave brought down origination volumes, a look at the company financials reveals the following data –
- The bank’s total income saw a 6.7% rise to reach Rs. 36771.47 crores for the quarter ended 30 June 2021.
- During this period, it reported a net profit of Rs. 7,729.64 crores, leading to a 16.1% Y-o-Y rise.
- HDFC Bank shares closed at Rs. 1442.85 as of 23 July 2021, Friday.
In a board meeting held on 18 June, the company recommended a dividend of Rs. 6.50 per share with a face value of Re. 1. Earlier this year, one of HDFC Bank’s subsidiaries, HDB Financial Services Ltd., considered launching an IPO.
HDFC Bank Facing M-cap Lag for the Second Time This Month
HDFC Bank’s market capitalisation fell for the 2nd time in July, contributing significantly to the market valuation slump of 8 companies that week.
For the week ended 2 July, HDFC Bank’s value dropped by Rs. 18,113.03 crores to stand at Rs. 818313.66 crores.
Tata Consultancy Services was another company that contributed largely to this market lag. Its value dipped by Rs. 20,400.27 crores to stand at Rs. 1230138.03 crores.
However, TCS witnessed an Rs. 6,436.35 crores gain in its market cap to reach Rs. 1188153.80 crores in the week ended on 23 July.
Hindustan Unilever and Reliance Industries had been significant gainers as of 2 July. However, they witnessed losses of Rs. 13,004.97 crores and Rs. 4,184.03 crores, respectively, this time.
Significant Gainers from Last Week
In stark contrast with HDFC Bank, Infosys from the top 10 company list saw a sharp rise in market cap by Rs. 15,055.86 crores to arrive at Rs. 677,343.70 crores.
ICICI Bank also emerged as a notable gainer, adding Rs. 11,370.14 crores to its current valuation of Rs. 468,639.08 crores.
HDFC Bank has been on a bearish run over the past few weeks despite reporting Rs. 7,729.64 crores in net profits for the quarter ended June 2021. It previously closed on Rs. 1429.95 and is trading at Rs. 1430.95 at the time of writing. Almost a month prior, on 28 June 2021, HDFC Bank stocks closed on Rs. 1506.60, marking a fall of approximately Rs. 70 to Rs. 1429.95.
Now, it is only a matter of time to see if HDFC Bank stock manages to improve and recover its valuation akin to its competitors.
Frequently Asked Questions
- Which are the top 10 most-valued companies?
HDFC Bank, Reliance Industries Ltd., Infosys, Hindustan Unilever, Tata Consultancy Services, Bajaj Finance, HDFC, State Bank of India, Kotak Mahindra Bank, and ICICI Bank constitute the top 10 company list.
- Which are the subsidiary companies of HDFC Bank?
HDFC Bank has 2 subsidiaries, namely, HDB Financial Services Ltd. and HDFC Securities Ltd.
- Who is the CEO of HDFC Bank?
Sashidhar Jagdishan is the CEO of HDFC Bank Ltd.