ABOUT THE COMPANY
HDB Financial Services is a leading NBFC that caters to the growing needs of an inspirational India, serving both retail and commercial clients. It provides lending services and business process outsourcing services. In addition to these services, it also provides marketing and promotional services of various financial products.
G. Ramesh is the MD and CEO of the company.
RESULT HIGHLIGHT
OUR INTREPRETATION
HDB Financial have shown poor top-line growth in Q4FY21, signifying less disbursals made during the quarter. Few of its peers, like Shriram Transport, Cholamandalam, have surpassed their Pre-covid levels till date unlike HDB, thus signifying relative weakness in growing its business. The bottom-line has shown 123% y-o-y growth mainly due to falling interest rate in FY21.On a yearly basis, the company’s cost to income ratio have increased sharply from 78% in FY20 to 93% in FY21, indicating operational inefficiency. This impacted the profit and lead to earnings de-growth by 61% during the year. Owing to this poor performance, we believe that the stock is currently overpriced in the unlisted market.
DISCLAIMER
This article is prepared by CA Shraddha Jain, Senior Research Analyst – Unlisted & Private Equity, on January, 22 2021. The views expressed herein are based on the facts and assumptions indicated in the document.
All investment / financial opinions and/or views expressed herein are the personal views of the author. All the information contained herein is to be construed as indicative data which has to be corelated with actual market and economic conditions.
It is very important for investors to do their own analysis before making any investment. The investor should take independent financial advice or independently research and verify, any information herein. The information contained in the report is not intended as, and shall not be understood or construed as, financial advice.
Unintended and misprints may occur despite best efforts to ensure that all information is accurate and up to date.
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- Investment in unlisted securities is subject to market risks.
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- Any future gains or losses indicated herein are projections, based on our understanding of the market and macro-economic situation as well as our understanding of the enterprise issuing the unlisted securities, as on the date of this communication. Future course of events may change the projections. We do not assume responsibility to update this report based on such changes.
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