Unlisted Shares

Healthy Net Interest Income:- Company has shown a Year on Year (Y-o-Y) growth  of 17.4% in Net Interest Income. Company has shown 5 year CAGR growth of 12.3% in Net Interest Income 

Improvement in Net Non-Performing Asset (NNPA):- The NNPA of the company has decreased significantly Y-o-Y from 0.95% in FY23 to 0.63% in FY24. This improvement in NNPA of the company has happened on account of company focusing on higher asset quality and diversifying borrowings mix to reduce default risks due to rising interest rates   

Huge Jump in Net Profit:- The net profit of the company has shown a Y-o-Y growth of 25.6% from Rs 1,959 Cr in FY23 to Rs 2,461 Cr in FY24. This significant rise in the profit of the company is due to the improved asset quality of the company and significant reduction in the Provision for the loan losses of the company.

Adequately Liquid:- The Capital Adequacy Ratio (CAR) of the company stands at 19.3% in FY24 which is way above the regulatory requirement of 15%. The company has been consistently maintaining its CAR well above the regulatory requirement for more than a decade now

Powered by HDFC Bank:- HDFC Bank holds 94.64% in HDB Financial Services

Investment Thesis:- The 3-year average book value growth of the company stands at 16.5% and we expect the current performance of the company to continue keeping in mind the overall growth in the credit cycle. The book value of the company is expected to increase from the current levels of Rs 173 in FY24 to Rs 202 in FY25 valuing the company at an average P/B multiple of 6.2 valuing the company at a share price of Rs 1,253