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HDFC Bank Vs Kotak Bank - What to buy now


Huge discount is going on in the stock markets including Bank Nifty and Nifty. It might be opening some investment gates in Nifty as well. Apart from this, everyone is around us wanted to invest if they have cash in hand in shares that have good fundamentals and business prospects. Thus, that expedition, I am here with some fundamental comparison between to Banking Giants - HDFC Bank and Kotak Bank.

So, one can decide where and why to invest in them. HDFC Bank is very large in terms of loan book size and branch network. HDFC Bank has Rs. 9,36,030 crores loan book value whereas Kotak has Rs. 2,16,774 crores. 5345 branches are operating for HDFC bank and 1539 is number for the Kotak.



I have put all the fundamentals factors of both banks in a tabular form so one can take a bird’s eye view in a second.

My fundamental analysis of both the banks are as under:       
                                                                                                                         (Rs. in crores)

Particulars
HDFC Bank
Kotak Bank

Revenue
1,02,156
24,008
Expenses
66,365
16,712
Provisions
8,358
1,169
Profit After Tax
19,330
4,681
EPS (Annualized)
46.80
32.40
Equity Capital
548
956
Net Worth
1,49,209
42,400
Book Value
272
222
Price to Book Value (P/B)
3.00
5.30
Share Price
830
1,182
PE Ratio
18
37
NIM (Net Interest Margin)
4.20%
4.70%
Capital Adequacy Ratio
18.50%
18.20%
CASA Ratio
40%
54%
Loan Book
9,36,030
2,16,774
Gross NPA
1.40%
2.50%
Net NPA
0.50%
0.90%
Branches
5345
1539

Bottom Line:
HDFC Bank is available at a cheaper price compared to Kotak Bank. Kotak could be the best buy around in the price range of 800-900. The PE value of HDFC bank is 18 and Kotak has 37. So, Kotak has the PE values double in compare to HDFC bank also if you look at the industry PE which is around 24, suggest HDFC bank is cheaper now.

Post your comments and the suggestions about these Giants banks in the comment box.



Disclaimer: This is my personal opinion and research based on the annual report. Please do not consider this any recommendation. Do your own analysis and consult your financial advisor before investing in both the above stock.

HDFC Bank Vs Kotak Bank - What to buy now Reviewed by CA Jaykishan Pamnani on April 03, 2020 Rating: 5

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