HDB Financial Services shares extend gains from issue price — Here is a scenario analysis

Shares of newly listed HDB Financial Services, the subsidiary of India’s largest private lender, HDFC Bank Ltd., gained as much as 6% on Thursday, July 3, extending their gains from the 13.5% surge seen on listing day.At the highs of the day, shares of HDB Financial were up 20% from their issue price of ₹740.

Here are some of the key things you need to know about HDB Financial Services:
Its asset quality is one of the lowest among its peers.

Stock	Asset Quality
HDB Financial	2.26%
Chola Finance	2.81%
Shriram Finance	4.55%
Bajaj Finance	0.96%

The company has a diversified portfolio, with 73% of its loan book being secured and 27% being unsecured, at the end of financial year 2025.
The company operates in three business verticals – Enterprise, Asset Finance and Consumer.

Segment	% Of Loan Book	AUM
Enterprise	39.9	39,301
Asset Finance	37.4	36,850
Consumer	22.8	22,474

The company’s net profit has grown at a Compounded Annual Growth Rate (CAGR) of 29% over the last four years.Here are some of the concerns highlighted by analysts:

The lender’s Return on Assets declined on a year-on-year basis, and is marginally lower compared to peers like Chola and Bajaj Finance.

Stock	Length
HDB Financial	2.16%
Chola Finance	2.40%
Shriram Finance	3.51%
Bajaj Finance	4.60%

HDB Financial’s Cost-to-Income ratio is also higher than its peers.

Stock	C-I Ratio
HDB Financial	49.41%
Chola Finance	39.85%
Shriram Finance	30.08%
Bajaj Finance	34.14%

At the highs of the day, HDB Financial traded at a one-year forward price-to-book multiple of 3.63 times, which is higher than Shriram Finance (2x), but lower than its other larger listed peers like Shriram Finance (4.7x) and Bajaj Finance (5.2x).

Shares of HDB Financial Services are trading 3% higher at ₹867.2.