HDB Financial Services Ltd.
NSE: HDBFSHDB Financial Services Ltd.: A 30-second snapshot
HDB Financial Services (HDBFS) is a listed NBFC and subsidiary of HDFC Bank, trading at ₹674.95 with a trailing PE of 21.8 and a forward PE of 14.1, implying consensus expectations of accelerating earnings. The stock sits 6.7% below its 200-DMA and 24.1% below its 52-week high, with a 3-month price change of -6.3%, even as the company reported strong recent quarterly profit growth.
P/E
21.8
Forward P/E
14.1
ROE
+13.9%
Debt / Equity
480.24
Profit Margin
+28.9%
Div. Yield
+0.6%
5Y ROE > 15%
2/5
5Y FCF > 0
0/5
Quality
50/100
News
8 headlines · 2 positive · 1 negative
India new issue-HDB Financial to issue floating-rate bonds, bankers say - marketscreener.com
marketscreener.com
HDB Financial shares fall after Q1 results; Emkay sees up to 11% upside - MSN
MSN
HDB Financial Services Issues 10,440 ESOP Shares, Increasing Paid-Up Capital - Whalesbook
Whalesbook
Press Release Distribution India - Business Wire India
Business Wire India
Number of shareholders of HDB Financial Services Limited – NSE:HDBFS - TradingView
TradingView
Recent context
- ·Post-Q1 results in April 2026, shares declined despite the quarterly numbers; Emkay cited potential upside in its coverage, and the headline noted an 11% upside view from that named broker.
- ·In May 2026 HDBFS announced a floating-rate bond issuance — a liability-side funding action that adds to the rising debt trend already flagged in persistence data.
- ·ESOP share issuances in April 2026 incrementally increased paid-up capital; at 10,440 shares the dilution is minimal but signals ongoing equity-compensation activity.
Strengths
- +Revenue has grown at an 18.4% five-year CAGR and earnings at 35.7%, placing HDBFS among the higher-growth profiles in the Banking-NBFC peer group.
- +Quality score of 57/100 ranks first among the six sector peers tracked (vs AXISBANK 53, BAJFINANCE 53, HDFCBANK 47), suggesting relative operational strength within the comparison set.
- +Forward PE of 14.1 represents a 35% compression from the trailing PE of 21.8, reflecting analyst consensus expectations of meaningful earnings growth in the near term.
- +Profit margin of 28.9% is consistent with NBFC economics; dividend yield of 0.59% is present, and the company has recently issued ESOP shares and floating-rate bonds — indicating active capital management.
Weaknesses
- −FCF has been positive in 0 of recorded years, and the debt trend is classified as rising — for an NBFC with D/E of 480.2, sustained negative free cash flow increases sensitivity to refinancing conditions and liquidity cycles.
- −ROE of 13.94% has exceeded 15% in only 2 of tracked years (consistency score 31/100); the gap between strong earnings growth and sub-15% ROE persistence suggests profitability has not yet reached structural durability.
- −Current price of ₹674.95 sits 6.7% below the 200-DMA of ₹723.37 and 24.1% below the 52-week high, with three resistance levels clustered between ₹705 and ₹731; the stock has not reclaimed its longer-term trend line.
- −Quality consistency score of 31/100 is low in absolute terms despite the peer-relative rank of 1 of 6 — reflecting that the peer group itself is broadly in the 20–57 range, not a high-quality cohort.
Open questions
- ?Does the gap between 35.7% five-year earnings CAGR and 0 FCF-positive years reflect structural provisioning norms for this NBFC business model, or does it indicate earnings quality concerns that may surface in future credit cycles?
- ?How much of the 35% compression from trailing to forward PE is driven by actual analyst earnings upgrades versus multiple de-rating — and how sensitive is that forward PE to a credit-cost increase?
- ?Given that HDBFS has D/E of 480.2 with a rising debt trend, how does its funding mix (deposits vs. market borrowings vs. bank lines) compare to peers, and what portion matures in the next 12 months?
- ?The stock is 24.1% below its 52-week high yet support levels are at ₹651 and ₹555 — what catalysts, if any, have historically coincided with HDBFS reclaiming its 200-DMA after similar extended drawdowns?
Peer comparison: Banking
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HDBFS | HDB Financial Services Ltd.You're viewing | 21.8 | +13.9% | 57 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹674.95
SMA 50
₹649.78
SMA 200
₹723.37
RSI (14)
53.2 (neutral)
From 52w high
-24.1%
1Y return
—
3M return
-6.3%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 480.2 reflects standard NBFC leverage, but FCF has been positive in 0 of recorded years and the debt trend is classified as rising — this combination elevates refinancing and asset-quality sensitivity relative to peers.
- mediumROE of 13.94% has cleared 15% in only 2 of tracked years; consistency score is 31/100, indicating that five-year earnings CAGR of 35.7% has not yet produced durable return-on-equity.
- mediumCurrent price of ₹674.95 is 6.7% below the 200-DMA of ₹723.37 and 24.1% below the 52-week high; the stock has spent recent months in a below-200-DMA regime.
- lowNews corpus totals 8 items — modest signal breadth; headline coverage includes a post-Q1 share price decline and a floating-rate bond issuance, with 1 negative item among 8.
Cross-section contradictions
- Five-year earnings CAGR of 35.7% and a forward PE of 14.1 that is well below the trailing PE of 21.8 imply strong near-term profit growth expectations, yet FCF has been positive in 0 of recorded years and quality consistency scores 31/100 — earnings expansion has not been accompanied by free-cash conversion.
- News sentiment is neutral-to-positive (2 positive, 1 negative of 8 items), but the stock is down 6.3% over 3 months and 24.1% below its 52-week high, suggesting price action has diverged from the recent earnings and news tone.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days