HDB FINANC SER

How has been the historical performance of HDB FINANC SER?

HDB FINANC SER's historical performance shows mixed results, with net sales increasing to 16,300.30 Cr in March 2025, but profitability declined, reflected in lower operating profit, profit before tax, and earnings per share. Total liabilities and debt rose significantly, while cash flow from operations remained negative, indicating rising costs and declining profitability despite some asset growth.

Answer:<BR>The historical performance of HDB FINANC SER shows a mixed trend in its financial metrics over the past two years.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2025, HDB FINANC SER reported net sales of 16,300.30 Cr, an increase from 14,171.10 Cr in March 2024. Total operating income mirrored this growth, remaining at 16,300.30 Cr in March 2025. However, total expenditure also rose to 13,178.10 Cr from 10,721.30 Cr, leading to an operating profit (PBDIT) of 3,122.20 Cr, down from 3,449.80 Cr the previous year. Interest expenses surged to 6,390.20 Cr from 4,864.30 Cr, resulting in a gross profit (PBDT) of -3,268.00 Cr, compared to -1,414.50 Cr in March 2024. Profit before tax decreased to 2,927.80 Cr from 3,304.70 Cr, and profit after tax also fell to 2,175.90 Cr from 2,460.80 Cr. The earnings per share (EPS) declined to 27.34 from 31.09, reflecting a decrease in profitability. The operating profit margin dropped to 19.15% from 24.34%, while the profit after tax margin decreased to 13.35% from 17.36%. On the balance sheet, total liabilities increased significantly to 1,07,780.04 Cr from 91,616.56 Cr, with total debt rising to 87,397.77 Cr from 74,330.67 Cr. Despite these challenges, the book value per share improved to 198.8 from 173.28, indicating a stronger equity position. Cash flow from operating activities remained negative at -13,626.00 Cr, although cash and cash equivalents increased to 950.00 Cr from 647.00 Cr, suggesting some liquidity improvement. Overall, while HDB FINANC SER experienced growth in sales and assets, it faced rising costs and declining profitability.

Has HDB FINANC SER declared dividend?

HDB Financial Services Ltd has declared a 20% dividend, with an ex-date of October 24, 2025. However, the total returns over various periods have been minimal, with a dividend yield of 0% and no significant price growth in recent years.

HDB Financial Services Ltd has declared a 20% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 20%<BR>- Ex-date: 24 Oct 25<BR><BR>Dividend Yield: 0%<BR><BR>Total Returns by Period:<BR>In the last 3 months, HDB Financial Services Ltd experienced a price return of -9.23%, a dividend return of 0.25%, resulting in a total return of -8.98%.<BR><BR>Over the 6-month period, the price return was 0%, the dividend return was 0%, leading to a total return of 0.0%.<BR><BR>For the 1-year period, there was no price return, no dividend return, and thus a total return of 0.0%.<BR><BR>In the 2-year period, the price return remained at 0%, with no dividend return, resulting in a total return of 0.0%.<BR><BR>During the 3-year period, there was again no price return or dividend return, leading to a total return of 0.0%.<BR><BR>For the 4-year period, the price return was 0%, the dividend return was 0%, resulting in a total return of 0.0%.<BR><BR>Lastly, in the 5-year period, there was no price return, no dividend return, and consequently a total return of 0.0%.<BR><BR>Overall, while HDB Financial Services Ltd has declared a dividend, the total returns over various periods indicate a lack of significant growth or returns, particularly in the longer terms. The dividend yield remains at 0%, suggesting limited income generation from dividends in recent years.

Is HDB FINANC SER overvalued or undervalued?

As of November 10, 2025, HDB Financial Services is considered overvalued with a PE ratio of 27.86, despite being less expensive than Bajaj Finance, but significantly higher than Life Insurance, and its low dividend yield of 0.27% and ROE of 1.13% further indicate overvaluation.

As of 10 November 2025, the valuation grade for HDB Financial Services has moved from fair to expensive. The company is currently overvalued based on its financial ratios, with a PE ratio of 27.86, an EV to EBIT of 47.04, and an EV to EBITDA of 44.11. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.<BR><BR>In comparison to its peers, HDB Financial Services has a lower PE ratio than Bajaj Finance, which stands at 38.76, indicating that HDB is less expensive relative to Bajaj. However, it is significantly higher than Life Insurance, which boasts a PE of 11.14, highlighting a notable disparity in valuation within the sector. Additionally, the company's dividend yield of 0.27% and ROE of 1.13% further support the conclusion of overvaluation, especially when juxtaposed with the broader market performance, where HDB has shown a slight gain of 0.93% over the past week compared to a decline in the Sensex.

Should I buy, sell or hold HDB Financial Services Ltd?

Which are the latest news on HDB FINANC SER?

Why is HDB Financial Services Ltd falling/rising?

As of 19-May, HDB Financial Services Ltd's stock price is at 674.50, reflecting a recent decline and underperformance compared to its sector. Despite this, strong fundamentals and increased institutional interest suggest potential for future recovery.

As of 19-May, HDB Financial Services Ltd's stock price is currently at 674.50, reflecting a decrease of 0.5 (-0.07%). The stock has been underperforming recently, having lost value for three consecutive days, resulting in a total decline of 0.3% during this period. Additionally, the stock's performance today has underperformed its sector by 0.39%. <BR><BR>In terms of broader performance metrics, the stock has shown a year-to-date decline of 11.85%, which is slightly worse than the benchmark Sensex's decline of 11.76%. Over the past month, the stock has decreased by 0.97%, while the Sensex has increased by 0.86% in the same timeframe. <BR><BR>Despite these declines, there are some positive indicators. The stock is currently trading higher than its 50-day moving average, although it remains below its 5-day, 20-day, 100-day, and 200-day moving averages. Furthermore, there has been a notable increase in investor participation, with delivery volume rising by 379.49% against the 5-day average, indicating heightened interest in trading the stock.<BR><BR>The fundamentals of HDB Financial Services Ltd remain strong, with a solid average Return on Equity (ROE) of 15.92%. Recent quarterly results have also shown positive performance, with record net sales and profits. Additionally, institutional investors have increased their stake in the company by 0.57% over the previous quarter, suggesting confidence from more sophisticated investors.<BR><BR>In summary, while HDB Financial Services Ltd is currently experiencing a decline in stock price due to recent underperformance and consecutive losses, the strong fundamentals and increasing institutional interest may provide a foundation for potential recovery in the future.