HDFC Bank, SBI Pass Piotroski Health Checks at Moderate P/E

8 of 9. [HDFC Bank (NSE: HDFCBANK)](/stock/HDFCBANK) and [State Bank of India (NSE: SBIN)](/stock/SBIN) each passed 8 of 9 Piotroski F-Score checks, according to FairStock.ai data. [Kotak Mahindra Bank (NSE: KOTAKBANK)](/stock/KOTAKBANK) and [Axis Bank (NSE: AXISBANK)](/stock/AXISBANK) also cleared 8 of 9 checks. The F-Score uses nine tests across profitability, borrowing, liquidity, and efficiency. HDFC Bank and SBI pass Piotroski health checks at moderate P/E levels. HDFC Bank trades at 15.9 times earnings. SBI trades at 11.4 times. The gap between the two valuations is wide enough to frame the sector debate: pay more for a private deposit franchise or buy the state-owned lender's lower multiple. HDFC Bank and SBI Pass Piotroski Health Checks at Moderate P/E The F-Score was developed by Joseph Piotroski. It asks yes/no questions about return on assets, operating cash flow, gross margin, asset turnover, borrowing, liquidity, and share count. A bank that passes 8 of 9 questions has improved its fundamental position over the past year. For HDFC Bank, the score reflects a balance sheet that has absorbed the merger with parent HDFC Ltd. The bank's P/E of 15.9 is below the levels investors paid during the pre-merger years. That matters. A lower multiple means the market isn't pricing in flawless execution. But an 8/9 F-Score says the accounting trend has turned positive. SBI's 11.4 P/E is cheaper. The bank passed the same 8 of 9 checks, which is notable because state-owned lenders often score poorly on efficiency. Its lower multiple compensates for a different risk profile: state ownership and credit exposure to public-sector enterprises. What 8 of 9 F-Score Means for Bank Investors A high F-Score doesn't predict stock returns. It filters for improving fundamentals. Investors should treat it as a risk-reduction screen, not a buy signal. The screen becomes more useful when combined with valuation. HDFC Bank at 15.9 P/E and SBI at 11.4 P/E offer different risk-rew...