Is HDFC Bank cheap after the merger? Compare its P/B and ROE with ICICI Bank and tell me what FIIs have been doing.
D DoXy
✓DoXy IntelligencePreparing investment analysis…Research completed · 20 sources · 4 financials46s
✓Screening4 results0s
✓Market Data6 metrics14sChecking prices for 2 stocks · 2 rows · 6.9sChecking fundamentals · 2 rows · 6.9s
✓Shareholding & Flows16 datasets14s
✓Financial Statements16 datasets14sReading HDFCBANK's financials · 8 rowsReading ICICIBANK's financials · 8 rows
✓Market Intelligence18 sources0s
✓Peer Analysis1 peers0s
HDHDFCBANKHDFC Bank Ltd₹706.65+0.83%ICICICIBANKICICI Bank Ltd₹1,430+0.25%
I'll analyze HDFC Bank's post-merger valuation, compare it with ICICI Bank, and check FII positioning.
AccumulateFair value ₹1,550 – ₹1,850▲ 140.6%18–24 months
Trading at historically depressed P/B (~1.85x) vs ICICI Bank (2.84x) despite similar ROE profile. Merger headwinds are clearing; FCNR deposits improve funding. CEO transition is a near-term overhang, but long-term compounding at higher ROE remains intact.
Core comparison: HDFC Bank vs ICICI Bank
MetricHDFC BankICICI Bank
Current price (EOD)₹706.65₹1,430.00
P/E (standalone FY26)16.11x18.49x
P/B (standalone FY26)2.11x2.78x
ROE (latest)13.6%15.9%
ROCE (latest)7.02%7.18%
52-week drawdown-30.7%-3.4%
Valuation gap: HDFC trades at ~1.85–2.11x P/B vs ICICI at ~2.78x, a meaningful discount despite comparable returns on equity. This looks like a merger overhang, not fundamentals.