HDB Financial Services Unlisted Shares
Buy - ₹930.00
Sell - ₹965.00
About HDB Financial Services Unlisted Shares
1. About HDB Financial Services (HDBFS)
HDB Financial Services (HDBFS) is a prominent Non-Banking Financial Company (NBFC) in India that specializes in offering a diverse range of financial services to both retail and commercial clients. Established in 2008, the company has rapidly expanded its footprint and built a strong reputation for reliability and customer-centric financial products. Operating as a Systemically Important Non-Deposit Taking NBFC, HDBFS is known for its solid capitalization, widespread network, and a strong track record in the Indian financial ecosystem. With high ratings from agencies such as CARE AAA and CRISIL AAA for long-term debt, HDBFS is considered a stable and credible financial institution.
2. Business Divisions
HDB Financial Services offers a broad spectrum of financial products and services, aimed at both individuals and businesses:
- Loans:
HDBFS provides a variety of loan products, including consumer loans (gold loans, auto loans, personal loans, loans against mutual funds) and enterprise loans for small and medium-sized businesses. The company also offers asset financing for vehicles and income-generating assets like trucks and tractors. - Fee-Based Products:
Through partnerships with HDFC Life and HDFC Ergo, HDBFS acts as a Corporate Insurance Agent, offering life and general insurance products. These products cater to both individual and corporate clients, providing comprehensive coverage for various financial needs. - BPO Services:
HDBFS runs an extensive Business Process Outsourcing (BPO) division with 15 call centers across India. These call centers manage collections and due-diligence services, supporting the company’s lending and other financial operations.
3. Financial Highlights
The financial performance of HDB Financial Services highlights its growth trajectory and strong market position. Here are key financial insights for FY2024:
- Revenue Growth:
The company saw impressive revenue growth, with interest earned amounting to ₹11,157 crore in FY2024, a significant increase from ₹8,928 crore in FY2023. This increase highlights strong demand for its loan products and services. - Profit After Tax (PAT):
HDBFS recorded a PAT of ₹2,461 crore in FY2024, marking a 26% increase from ₹1,959 crore in FY2023. This indicates strong profitability and efficient cost management, contributing to the company’s overall financial health. - Improved Asset Quality:
Gross NPAs decreased to 1.9% in FY2024 from 2.73% in FY2023, reflecting the company’s effective risk management strategies and improved asset quality. The net NPA stood at 1.9%, a slight increase from 2.29% in FY2022, but still indicative of stable performance. - Earnings Per Share (EPS):
The EPS for FY2024 reached ₹31.03, an increase from ₹24.75 in FY2023. This growth in EPS reflects improved profitability and value creation for shareholders. - Total Assets and Liabilities:
HDBFS’ total assets increased to ₹92,556 crore in FY2024, up from ₹70,050 crore in FY2023. The company’s liabilities also rose to ₹92,556 crore, primarily due to increased borrowings, but it still maintained a manageable debt-equity ratio, ensuring liquidity.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Diverse Product Portfolio: Offers a wide range of financial products, enhancing revenue stability.
- Strong Market Presence: Extensive network of 1,468 branches across 1,070 cities serves diverse client needs.
- Improved Financial Performance: Consistent growth in revenue and profitability, with a 26% increase in FY2024 PAT.
Cons
- Dependency on Borrowings: High borrowings increase financial costs and vulnerability to interest rate fluctuations.
- Risk of NPAs: Fluctuating NPA ratio, with 1.9% in FY2024, requires continued focus on asset quality.
- Regulatory Challenges: Vulnerable to changes in government policies and regulations affecting lending and operations.
