HDB Financial Services Limited Unlisted Shares | Latest Updates & Share Price
Company Overview
HDB Financial Services is a leading non-banking financial company (NBFC), engaged in the business of lending, fee-based products, and BPO services. The company is a subsidiary of HDFC Bank with a 95% stake.
As of 31-March-2022, there were 79,04,40,031 outstanding equity shares of a face value of Rs 10 each, and 94.96% of the shareholding was owned by HDFC Bank. At an unlisted share price of Rs 640 per share (HDB Financial Unlisted Share Price), the total market capitalization of the company stands at around Rs 50,500 crores, with a P/E ratio of 50x (640/12.8).
The company paid dividends in the recent past as per the following rates:
– FY 2022: ₹ 1 per share
– FY 2021: Nil
– FY 2020: Nil
– FY 2019: ₹ 1.80 per share
– FY 2018: ₹ 0.90 per share
Business Model
The business model of HDB financial Services is based on offering loan products with customized features and focused towards first-time borrowers and underserved segment class. The company offers consumer loans, business loans, loan against property, asset-backed finance and micro lending.
Under consumer loans, HDB provides gold loans, consumer durable loans, personal loans, loan against MFs, and car loans. Under business loans, HDB provides working capital loans, commercial vehicle loan, loan against property, Under the Asset-backed loan category, HDB provides tractor loan, construction equipment loan, commercial vehicle loan.
Under BPO Services, the company manages call centers at over 700 locations in India. These call centers manage the collection of overdue retail loans of HDFC Bank and also provide sales support and back-office services including form processing, document verification, accounting operations to HDFC Bank. The BPO segment accounts for around 18% of the total income of the company.
HDB is also a corporate agent of HDFC Life Insurance, Aditya Birla Sun Life Insurance, HDFC Ergo General Insurance and Tata AIG General Insurance to sell their life and non-life insurance products to its customers.
As on 31-March-2021, HDB has 1319 branches across 959 cities in India.
Registered Address
The registered address of the company is located at Radhika, 2nd Floor, Law Garden Road, Navrangpura, Ahmedabad, Gujrat.
Symbol: HDB Financial Services Ltd.
Face Value (₹): 10
ISIN: INE756I01012
Demat Status: NSDL & CDSL
Lot Size: 20 Shares
Network Spread – HDB Financial Services Ltd has a branch network of 1319 branches across 959 cities in India. HDB Financial has set up 13 call centers across the country with a capacity of over 3500 seats and offers end to end collection services, sales support services, back office, operations and processing in contract with HDFC Bank Ltd in over 500 locations.
Board of Directors:
| Name | Designation | Profile |
|---|---|---|
| Mr.Bhavesh C Zaveri | Director |  |
| Mr.Venkatraman Srinivasan | Director |  |
| Mr.Aditya Puri | Director | |
| Mr.Ramesh Ganesan | Managing Director | |
| Mr.Jimmy Minocher Tata | Director | |
| Ms.Smita Cawas Affinwalla | Independent Director | |
Key Highlights of HDB Financial Unlisted Share Price
- Undervalued NBFC stock currently trading at P/B of around 8.03.
- Stable business growth with around 11.45% CAGR in AUM during the last 3 years.
- Diversified business model with both retail and commercial lending, having presence in over 1100 cities pan-India and 72% of the loan portfolio is secured.
- Backed by reputed parent HDFC Bank, HDB Financial Services will be 5th HDFC group company to get listed.
Ratio
| Ratio | FY23 | FY22 |
|---|---|---|
| Operating Margin | 49% | 41% |
| Net Profit Margin | 16% | 9% |
| Return on Equity | 17% | 11% |
| Debt-Equity | 4.49 | 4.70 |
| Current Ratio | 1.18 | 1.17 |
| Dividend Payout | 0% | 8% |
Note:- Dividend payout = Total Dividend/Net Income.
It indicates, how much % of its Net Income, the company is paying out as dividend to its Shareholders.
Financial Highlights
| Particulars | 2022-23 | 2021-22 | 2020-21 | 2019-20 | 2018-19 |
|---|---|---|---|---|---|
| Total Income (₹ Crores) | 12402.88 | 11306.29 | 10944.78 | 10756.47 | 8724.81 |
| PAT (₹ Crores) | 1959.35 | 1011.40 | 391.47 | 1004.85 | 1153.24 |
| Diluted EPS | 24.76 | 12.80 | 4.97 | 12.77 | 14.69 |
| Book Value per Share (₹) | 144.52 | 120.69 | 107.02 | 101.80 | 91.36 |
| Equity (₹ Crores) | 11436.97 | 9539.73 | 8446.24 | 8017.80 | 7178.48 |
Financial Charts
Historical Chart
Shareholding Pattern
Peer Comparison
| Company | Market Cap (₹ Crores) | Profitability Margin (%) | ROCE (%) | ROE (%) | D/E Ratio | P/E Ratio | P/B Ratio | Book Value per Share (₹) |
|---|---|---|---|---|---|---|---|---|
| HDB Financial Services Ltd | 53024 | 16% | 51% | 17% | 4.49 | 27.06 | 4.64 | 144.52 |
| Bajaj Finance Ltd | 421255 | 28% | 12% | 24% | 3.99 | 36.60 | 7.73 | 898.00 |
| Muthoot Finance Ltd | 49242 | 33% | 12% | 18% | 2.36 | 14.20 | 2.35 | 525.00 |
Media Updates
HDFC Bank revives IPO plans of NBFC arm, looking to bring in strategic investor
New Delhi: HDFC Bank—the country’s largest private lender—is reportedly actively considering going public with its non-banking subsidiary HDB Financial Services, months after deferring plans. The lender has started a formal process to bring in a strategic investor.
Read more here: https://www.timesnownews.com/business-economy/industry/article/hdfc-bank-revives-ipo-plans-of-nbfc-arm-looking-to-bring-in-strategic-investor/820959
“HDB FINANCIAL SERVICES LTD – Q2 FY2021 RESULT”
- The total loan book grew by 2.3% to ₹ 57,014 crore as on September 30, 2020 as against ₹ 55,759 crore as of September 30, 2019.
- Liquidity Coverage Ratio now at a healthy 214%.
- HDBFSL’s net interest income was at ₹924.2 crore as against ₹ 971.1 crore in the previous quarter.
- Profit after tax for the quarter ended September 30, 2020 was ₹ 29.9 crore compared to ₹ 213.0 crore in the previous quarter.
- As on September 30, 2020, Gross and Net NPA were 4.3% of gross advances and 3.1% of net advances respectively.
- Total CAR was at 19.6% with Tier-I CAR at 14.6%.
- As on September 30, 2020 HDBFSL had 1,342 branches across 986 cities / towns.
“HDB FINANCIAL SERVICES LTD – Q1 FY2021 RESULT HIGHLIGHTS”
- Interest Income – Rs. 2153.8 Crs (June 2020) v/s Rs. 1951.1 Crs (June 2019).
- Total Income – Rs. 2679.7 Crs (June 2020) v/s Rs. 2529.8 Crs (June 2019).
- Segment Revenue – Lending Rs. 2210 Crs & BPO Services Rs. 46.95 Crs
- PAT – Rs. 111 Crs (June 2020) v/s Rs. 221.9 Crs (June 2019).
- EPS – Rs. 1.41 per share (June 2020) v/s Rs. 2.82 per share (June 2019).
Frequently Asked Questions
The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid.
The procedure to buy the HDB Financial Services shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller.
When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day
In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.
The HDB Financial shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.
The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for HDB Financial unlisted shares, please visit the stock page on our website: www.delistedstocks.in
There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares.
Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.
If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor.
If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.
The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, 1992 which comes under the preview of SEBI. The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.
The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange.
Yes, NRI’s can also buy and sell HDB Financial Services unlisted shares just like domestic investors. But their investment is on a non-repatriable basis.