HDB Financial Services Share Price 2024 - Buy/Sell Online
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Unlisted Shares

PHYSICAL

HDB Financial Services Essentials

HDB Financial Services Growth

Compounded Sales Growth

1 Year

5 Year

9 Year

Compounded Profit Growth

1 Year

5 Year

9 Year

Return On Equity

2018

2020

2023

Highlights

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Healthy Net Interest Income:- Company has shown a Year on Year (Y-o-Y) growth  of 7.5% in Net Interest Income. Company has shown 5 year CAGR growth of 11.6% in Net Interest Income 

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Improvement in Net Non-Performing Asset (NNPA):- The NNPA of the company has decreased significantly Y-o-Y from 2.29% in FY22 to 0.95% in FY23. 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   

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Huge Jump in Net Profit:- The net profit of the company has shown a Y-o-Y growth of 93.7% from Rs 1,011.4 Cr in FY22 to Rs 1,959.3 Cr in FY23. 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. If we consider profits without the provision for the loan losses, then there is De Growth of -5.5% in the net profit of the company

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Adequately Liquid:- The Capital Adequacy Ratio (CAR) of the company stands at 20.0% in FY23 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

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Powered by HDFC Bank:- HDFC Bank holds 94.84% in HDB Financial Services

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Investment Thesis:- HDB Financial Services is doing well in its segment and is backed by HDFC Bank but compared to its peers (Cholamandalam Investment & Finance Company Ltd, L&T Finance Holdings Ltd and Mahindra Finance) it is available at a P/B multiple of 4.9 vs the industry average of 3.0. Investors who have bought it can hold it but one should not make any new investments at these levels

Business Rating

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Managment
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Accounting Practice
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Profatibility
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Solvency
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Growth
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Valuation
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Over all Ratings
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Recommendation
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