HDB Financial shares fall after Q1 results; Emkay sees up to 11% upside
HDB Financial Services Ltd shares fell 3.6 per cent in Wednesday’s trade after the recently listed financial player delivered a less-than-expected set of numbers for June quarter results.
- Jul 16, 2025,
- Updated Jul 16, 2025 1:49 PM IST
HDB Financial Services Ltd shares fell 3.6 per cent in Wednesday’s trade after the recently listed financial player delivered a less-than-expected set of numbers for June quarter results. The company reported a 2.4 per cent fall in net profit at Rs 568 crore for the first quarter of FY26 compared with Rs 582 crore in the corresponding quarter of the year.
Following the results, HDB Financial Services shares fell 3.02 per cent, or Rs 25.40, to Rs 815.70 on the BSE at 12:20 pm. Earlier in the session, the stock hit a low of Rs 810, down nearly 3.6 per cent from its previous close of Rs 841.10.
Emkay Global said HDB Financial Services posted a soft Q1FY26, with AUM growth staying modest due to seasonal factors and conscious recalibration of its asset mix. The recalibration led to a 30 bps yield improvement, thus driving a 10 bps sequential expansion in NIMs. Asset quality saw marginal moderation and elevated credit costs due to continual stress in the CV and USL segments.
Emkay Global kept its 'Buy' recommendation for the stock at its unchanged target price of Rs 900, which is almost 11 per cent up from today’s low of Rs 810. “Factoring in the Q1FY26 developments and management commentary, we revise down our FY26/27 AUM growth estimates by 1 per cent to 2.5 per cent and marginally increase our credit cost estimate (offsetting the marginal improvement in yields), resulting in an EPS cut of 2-5 per cent over FY26-28E,” Emkay said.
“To reflect the Q1 FY26 developments and management commentary, we marginally adjust our FY26-27 EPS downward by 3-5 per cent, which results in a 5-10bps cut in ROA. We reiterate BUY on the stock and keep the Jun-26E target price unchanged at Rs 900, implying FY27E P/B of 3.0x. HDBFS is currently trading at an FY27E P/BV of 2.8x,” the brokerage firm said.
HDB Financial Services Ltd shares fell 3.6 per cent in Wednesday’s trade after the recently listed financial player delivered a less-than-expected set of numbers for June quarter results. The company reported a 2.4 per cent fall in net profit at Rs 568 crore for the first quarter of FY26 compared with Rs 582 crore in the corresponding quarter of the year.
Following the results, HDB Financial Services shares fell 3.02 per cent, or Rs 25.40, to Rs 815.70 on the BSE at 12:20 pm. Earlier in the session, the stock hit a low of Rs 810, down nearly 3.6 per cent from its previous close of Rs 841.10.
Emkay Global said HDB Financial Services posted a soft Q1FY26, with AUM growth staying modest due to seasonal factors and conscious recalibration of its asset mix. The recalibration led to a 30 bps yield improvement, thus driving a 10 bps sequential expansion in NIMs. Asset quality saw marginal moderation and elevated credit costs due to continual stress in the CV and USL segments.
Emkay Global kept its 'Buy' recommendation for the stock at its unchanged target price of Rs 900, which is almost 11 per cent up from today’s low of Rs 810. “Factoring in the Q1FY26 developments and management commentary, we revise down our FY26/27 AUM growth estimates by 1 per cent to 2.5 per cent and marginally increase our credit cost estimate (offsetting the marginal improvement in yields), resulting in an EPS cut of 2-5 per cent over FY26-28E,” Emkay said.
“To reflect the Q1 FY26 developments and management commentary, we marginally adjust our FY26-27 EPS downward by 3-5 per cent, which results in a 5-10bps cut in ROA. We reiterate BUY on the stock and keep the Jun-26E target price unchanged at Rs 900, implying FY27E P/B of 3.0x. HDBFS is currently trading at an FY27E P/BV of 2.8x,” the brokerage firm said.