10 High Growth Non-Tech Stocks That Are Profitable in 2024

7. HDFC Bank Limited (NYSE:HDB)

5-Year Net Income Growth: 24.06%

5-Year Revenue Growth: 32.72%

TTM Net Income: $681.67 Billion

Number of Hedge Fund Holders: 40

HDFC Bank Limited (NYSE:HDB) is a major private banking and financial services company based in India. The bank engages in Retail Banking, Wholesale Banking, Treasury Operations, and Insurance and Asset Management. It is recognized as the largest private sector bank in India and has around 11% market share in deposits. The bank also benefits from the largest credit card businesses in the country. Its diverse revenue streams and deep presence in both urban and rural markets reinforce its leadership position in the banking sector.

HDFC Bank Limited (NYSE:HDB) has been facing a series of challenges following the merger with Housing Development Finance Company in July 2023. The merger initially sparked a positive market reaction due to its potential for cross-selling services and leveraging the bank’s mortgage expertise. However, management soon found that the merger was dilutive to both book value and earnings per share in the short term.

On top of this, the December 2023 earnings report showed sluggish deposit growth and a higher loan-to-deposit ratio, raising doubts about the timely realization of merger benefits. Regardless, HDFC Bank Limited (NYSE:HDB) remains a strong player in the Indian Banking sector and benefits from a less competitive market and a strong corporate culture that emphasizes credit risk management.

During the most recent quarter, the fiscal first quarter of 2025, the bank showed significant improvement. Average advances under management grew 0.8% subsequently to reach INR 25, 327 billion ($301.32 million). Whereas the average deposits were up 4.6% during the same time to reach INR 22,831 billion ($271.63 million).

Over the past 5 years, the bank has grown its top line by around 33% indicating that it is one of the high-growth non-tech stocks that is profitable in 2024.

Artisan Developing World Fund stated the following regarding HDFC Bank Limited (NYSE:HDB) in its Q2 2024 investor letter:

“To reduce the range of investment outcomes further, we may seek investments not only with low revenue variability but with low incremental margin structures. For example, HDFC Bank Limited (NYSE:HDB) in India will have to fund every loan it makes with deposits, and will have to invest incremental profitability in acquiring and servicing customers.”