HDB FINANC SER

Why is HDB Financial Services Ltd falling/rising?

As of 29-Jul, HDB Financial Services Ltd's stock price is declining at 679.40, down 0.39%, with a total drop of 9.59% over the last nine days. Despite strong long-term fundamentals, negative sentiment and decreased investor participation are driving the stock's underperformance.

As of 29-Jul, HDB Financial Services Ltd is experiencing a decline in its stock price, currently at 679.40, which reflects a change of -2.65 (-0.39%). The stock has been underperforming significantly, with a consecutive fall over the last nine days, resulting in a total decline of -9.59% during this period. This trend is further highlighted by its performance over various time frames, showing a -3.92% drop over the past week and a -9.71% decline over the past month, while the benchmark Sensex has shown positive returns in both periods.<BR><BR>Investor participation has also decreased, as indicated by a 43.33% drop in delivery volume compared to the five-day average, suggesting a lack of interest or confidence among investors. Additionally, the stock is currently trading lower than its 5-day, 20-day, 50-day, and 200-day moving averages, although it remains higher than the 100-day moving average, indicating a short-term weakness in price momentum.<BR><BR>Despite these negative indicators, the company has demonstrated strong long-term fundamentals, with a return on equity (ROE) of 15.92% and a growth in net profit of 4.61% reported in its latest quarterly results. However, the overall negative sentiment and recent performance have outweighed these positive factors, contributing to the stock's current decline.

Which are the latest news on HDB FINANC SER?

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

What does HDB FINANC SER do?

HDB Financial Services Ltd is a mid-cap, retail-focused non-banking financial company (NBFC) and a subsidiary of HDFC Bank, offering diversified financial services. As of March 2026, it reported net sales of ₹4,745 Cr and a net profit of ₹751 Cr, with a market cap of ₹51,722 Cr.

Overview: <BR>HDB Financial Services Ltd is a leading, diversified, retail-focused non-deposit-taking non-banking financial company (NBFC) in the mid-cap category.<BR><BR>History: <BR>HDB Financial Services Ltd was incorporated on June 4, 2007, as a subsidiary of HDFC Bank Limited. It is classified as an Upper Layer NBFC by the Reserve Bank of India (RBI). The latest quarterly results reported net sales and profit for the period ending March 2026.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 4,745 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 751 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 51,722 Cr (Mid Cap)<BR><BR>Key Metrics: <BR>P/E: 20.00 <BR>Industry P/E: 20 <BR>Dividend Yield: 0.32% <BR>Debt Equity: 4.80 <BR>Return on Equity: 12.31% <BR>Price to Book: 2.51 <BR><BR>Contact Details: <BR>No Company Details Available <BR>Registrar Address: Not available.

How big is HDB FINANC SER?

As of 10th June, HDB Financial Services Ltd has a market capitalization of 51,722.00 Cr, with Net Sales of 12,076.50 Cr and a Net Profit of 1,659.40 Cr in the latest four quarters. Shareholder's Funds are 15,819.75 Cr and Total Assets are valued at 1,07,780.04 Cr.

As of 10th June, HDB Financial Services Ltd has a market capitalization of 51,722.00 Cr, categorizing it as a Mid Cap company.<BR><BR>In the latest four quarters, the company reported Net Sales of 12,076.50 Cr and a Net Profit of 1,659.40 Cr.<BR><BR>For the latest reporting period, Shareholder's Funds stood at 15,819.75 Cr, while Total Assets were valued at 1,07,780.04 Cr.

Who are the peers of the HDB FINANC SER?

HDB FINANC SER's peers include Cholaman.Inv.&Fn, Muthoot Finance, Aditya Birla Cap, L&T Finance Ltd, SBI Cards, Sundaram Finance, Authum Invest., M & M Fin. Serv., and Poonawalla Fin. Management risks vary from excellent to below average, with Aditya Birla Cap showing the highest 1-year return at 37.71% and SBI Cards the lowest at -42.15%.

Peers: The peers of HDB FINANC SER are Cholaman.Inv.&Fn, Muthoot Finance, Aditya Birla Cap, L&T Finance Ltd, SBI Cards, Sundaram Finance, Authum Invest., M & M Fin. Serv., and Poonawalla Fin.<BR><BR>Quality Snapshot: Excellent management risk is observed at Cholaman.Inv.&Fn, Muthoot Finance, and SBI Cards, while Good management risk is found at HDB FINANC SER, Sundaram Finance, and Aditya Birla Cap. Average management risk is noted at L&T Finance Ltd, Authum Invest., M & M Fin. Serv., and Poonawalla Fin, and the rest have Below Average management risk. Growth ratings show Good growth at Cholaman.Inv.&Fn, Muthoot Finance, and Poonawalla Fin, while HDB FINANC SER and Sundaram Finance have Below Average growth, and the rest have Average growth. Capital Structure is Excellent for Muthoot Finance, Aditya Birla Cap, L&T Finance Ltd, SBI Cards, Sundaram Finance, and the rest have Good or Average ratings.<BR><BR>Return Snapshot: Aditya Birla Cap has the highest 1-year return at 37.71%, while SBI Cards has the lowest at -42.15%. HDB FINANC SER's 1-year return is not available for comparison. Additionally, several peers, including Cholaman.Inv.&Fn, Muthoot Finance, L&T Finance Ltd, SBI Cards, Sundaram Finance, M & M Fin. Serv., Poonawalla Fin, and Tata Inv.Corpn., have negative six-month returns.

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.

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.

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.