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HDB Financial Services operates in three business verticals – Enterprise, Asset Finance and Consumer.

Most analysts covering HDB Financial’s IPO had given it a ‘Subscribe’ rating, citing strong growth prospects and the backing of the HDFC brand. In terms of valuation, HDB Financial appeared more attractive than peers like Chola Investment and Bajaj Finance, though it seemed expensive relative to Shriram Finance.

– A robust brand franchise and granular retail lending model

– A wide-reaching omni-channel (phygital) distribution platform

– Access to low-cost funding anchored by AAA-rated credit profile

HDB Financial Services aims to expand its footprint in underpenetrated markets and broaden its product offerings. It plans to enhance its presence in smaller cities, increase its loan book in sectors like microfinance and small business loans, and leverage technology for superior customer engagement and efficient operations.

Shares of HDB Financial Services ended 0.3% lower on Tuesday at ₹841.15, ahead of the earnings announcement.

– BPO Revenue Is A Small Part Of Our Net Revenue

– Relative To The Lending Business, BPO Revenue Will Decline

– Only LAP Book Is Linked To Floating And The Remaining Approximately 75% Book Is Fixed

Just a few minutes ago, HDB Financial Services, from levels of ₹845, slipped to an intraday low of ₹839.35.

The stock is now back at levels of ₹842, indicating volatile moves ahead of results.

– Don’t Get Any Business From HDFC Bank As We Run Our Own Biz & Tech Stack

– Draft Regulations For Overlapping Biz Are Still Under Discussion With Regulators

– We Run As An Independent Business And Only Do Retail Lending

Trading activity on HDB Financial’s shares remain subdued ahead of the quarterly earnings report.

Only 7.7 lakh shares of the company have been traded so far, in comparison to the previous three-day average of around 30 lakh shares.

– HDB Financial – 2.26%

– Chola Finance – 2.81%

– Shriram Finance – 4.55%

– Bajaj Finance – 0.96%

– Has 1,680 branches & a diverse AUM mix, largely focused on retail & SME lending

– Vehicle finance and Loans Against Property among its largest loan portfolios

– To be utilised for Tier-1 capital augmentation

– For future capital requirements including onward lending

– To ensure compliance with regulatory requirements on capital adequacy

– Total Assets: ₹1.09 lakh crore

– Gross Loan Book: ₹1.03 lakh crore

– Net Profit (after tax): ₹531 crore

– Capital adequacy ratio: 19.22%

– Gross Stage 3 ratio : 2.26%

– Liquidity coverage ratio: 161%

– Moderate asset quality

– Presence in unsecured and relatively riskier segments

– Strong liquidity

– Stake sale overhang

– Strong linkage with parent HDFC Bank

– Established presence in granular retail segment

– Comfortable capital structure and diversified resource profile

Trading in HDB Financial Services continues to remain choppy ahead of its quarterly results.

The stock is trading little changed at ₹844 as of 10:30 AM.

I think there is very little upside, and risks are more to the downside than to the upside from current levels. In our view, there is stress in the vehicle finance portfolio, both from a growth as well as from an asset quality perspective in the near term. And we do believe earnings could be weaker, especially for vehicle finance, NBFCs in the near term, and HDB indeed has a good 50% of the mix exposed to various vehicle segments. So that’s the challenge here. And clearly it looks like there is not much money to be made from current levels based on our fair value assessment of HDB financial services, increasing risks to the downside.

Gross Stage 3 Loans amounted to 2.26% of Total Gross Loans as at March 31, 2025, which was an increase from 1.90% as at March 31, 2024

Customers may default on their repayment obligations or may delay payments due to various factors. HDB also experience a drop in collection efficiency.

Asset quality will be a key monitorable.

– One of the leading, diversified retail-focused NBFC

– Categorized as an Upper Layer NBFC (NBFC-UL) by the RBI

– Three business verticals: Enterprise Lending (~40%), Asset Finance (~37%) and Consumer Finance (~23%) (data as of 1HFY25 as per DRHP)

– One of India’s largest and fastest growing customer franchises with customer base of 192 lakh customers

Shares of HDB Financial Services have opened lower on the day of its earnings announcement.

The stock is trading below its flat line in the early minutes of the trading session.

“The parent HDFC Bank may have to decrease its holding from 74.2% (post-issue @ UB) to less than 20% in a span of two years, according to the draft circular by the RBI, which was issued on October 4, 2024,” SBI Securities had said in a pre-IPO note.

Emkay had initiated coverage on HDB Financial Services with a “buy” rating and a price target of ₹900.

It said that HDB Financial is well positioned to improve profits and growth.

A favourable interest rate cycle driving NIM expansion, credit cost moderation, and growth outlook improving are some key positive factors.

Out of the nine trading sessions that HDB Financial Services has had, including its listing day on July 2, the stock has declined in five of them.

The stock has closed in the green in the other four sessions.

HDB Financial Services had allotted 4.5 crore shares to anchor investors at a price of ₹740 per share.

Anchor investors include marquee names like LIC, ICICI Prudential, Abu Dhabi Investment Authority (ADIA),SBI MF, Nippon Life, Government Pension Fund Global.

At the current price, HDB Financial Services trades at a one-year forward price-to-book multiple of 3.4 times which is lower than larger peers like Bajaj Finance, but higher than others like Shriram Finance.

HDB Financial Services listed at a 13% premium compared to its issue price of ₹740.

The stock made a post-listing high of ₹891 on its second-trading day, implying a growth of 20% from its issue price.

However, the stock is down 5% from those levels and is back at its issue price.

The first three trading sessions of HDB Financial Services saw volumes that were between 4 crore to 8 crore shares.

However, volumes since then have declined, with the last three sessions witnessing an average volume of 30 lakh shares being traded.

Shares of HDB Financial Services had ended Monday’s trading session 0.4% lower at ₹842.1.

Close to 34 lakh shares of the company changed hands during Monday’s trading session.

The stock has declined in three out of the last four trading sessions.

In the few days since it became a public company, HDB Financial’s shares have continued to trade around its listing price of ₹840 per share, which is a 13% premium to their issue price of ₹740 per share.

Having made a post-listing high of ₹891 on just its second day of trading, HDB Financial shares have corrected 5% from those levels.

HDFC Bank’s non-bank lending unit, which recently made its stock market debut, will be reporting their first quarterly results later today.

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