Here in this article, you will find an overview of HDB Financial Services unlisted shares / Pre IPO shares. Pre IPO pot stocks of HDB Financial Services Limited have been very vague as much of the info about the unlisted shares capital gain or say pre IPO stock valuation has not been given.

Thus, we bring forward this article to not only throw light on the unlisted equity share gain but also their future valuation and as well as HDB Financial Services Limited’s current stand value in the market to help you make your decision on the company’s pre IPO stock trading.

ManagementTrustworthy
Accounting PracticeClean
ProfitabilityOutstanding
Financial SolvencyWell Funded
Business GrowthOutstanding
ValuationOvervalued
Market PositionDominant leader
Overall Rating5 Star
RecommendationBuy

However, the piece of writing also talks about the company and as well as the industry’s future potency, taking into note various factors to determine if or not this company’s unlisted share list worth your investment or not.

Check this article for its company snapshot and future growth potential. Understand why you should invest in HDB Financial Services unlisted shares for higher profitability.

HDB Financial Services Unlisted Share – Review

When it comes to evaluating the company, we believe a various number of factors should be taken into note, to determine the entirety of the industry.

However, when it comes to a company like HDB Financial Services, one of the most factors to consider is the management or says the entire inside organization.

Reg Date     29th June 1999
ISININE742O01010
SectorConsumer Discretionary
 Sub-SectorRetail & Ecommerce
Current PriceNA
Total IncomeRs. 1,46,724.25Cr
Market Capital          Rs. 636,276 Cr.
Profit after TaxRs. 5,539.79 Cr
Total shares499,04,04,513

However, speaking in general it’s also of great importance to understand what role the management plays to elevate the company. When it comes to evaluate the administration or say the in-house organization we are basically eyeing the inside working structure of the company.

The management of HDB Financial Services has always been of interest among the competition as well, given the company has gained enormous height in a considerable short time period.

However, the administration at HDB Financial Services has been finely selected with blended years of experience and expertise in the field. HDB Financial Services is one of those ventures which take into note their supervision and as well as their everyday operation in great seriousness.

Taking the previous information, adding to that the growth and the profit segment of the industry, it’s good to say that the management of the company has been meeting expectations.

Coming to the accounting operations by the company, which again is a key point in the evaluation segment. To dodge any future loss or complication post buying the Pre IPOs’ of any company, it’s always advised to notching an eye on the company’s current as well as past account practice and their line of operation.

HDB Financial Services Unlisted Share – Evaluation

HDB Financial Services has been undertaking a set of services or say operations under them to serve customers with the most of it.  The company has been thorough with a regular check on their entire segment of service; maintains a very clean company’s status.

Intrinsic ValueRs. 141
Total Equity   Rs. 18,270.98 Cr
Total RevenueNA
Return on EquityNA
CFONA
CMPRs.1275
Face ValueRs.10
Basic EPS Rs.10.55
Dividend YieldNA
D/E0.25
Earnings Yield0.80%
P/E Ratio9.22x
EBITDARs. 9399.3 Cr
EV / EBITDANA
Capital Adequacy RatioNA

Taking into note the other important factors such as solvency, growth, and standing against the competition, HDB Financial Services has been very fine in these regards as well.

Thus coming to the topic of recommendation, we highly believe that seeing the current market stats, HDB Financial Services is definitely an investment to consider.


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    About HDB Financial Services Limited

    HDB Financial Services has been one of the topmost growing companies when we take into note the non-banking side of the industry in consideration.  The HDB Financial Services has now widened its sources and services, thus the company now cater services not only to business with high income but also to budding individuals.

    The HDB Financial Services or say the HBD Company itself is a segment of the HDFC bank or we can either say it’s a subordinate company of HDFC bank.  Thus, it can be said and known that the HDB Financial Services have a great industrial backup and year’s worth of experience in their pocket.

    Coming to the parent role which the HDFC bank has been playing for HDB Financial Services, the HBD was nominated as a division of HDFC bank dealing with the non-banking finance sector. As HDFC bank is a major name in the finance industry and HBD being one of the top non-banking financial companies, HDFC bank owns a major part of the shares, which is around some 95.4%.

    HDB Financial Services Unlisted Share – Products/Services

    HDB Financial Services Limited earlier used to deal with a constructed set of the crowd which mainly only involved the strongly growing business or say the new and young budding companies. However, over the years the company has made major upgrades in their main lines of business which means that not only is the service lending scenario has now been improved and started serving more business and even individuals but the set of services has also experienced major additions.

    Coming to the company’s lending services, which at present date is one of the most asked for service in our country. Taking into note the growing business, widened approach to education, more and more young entrepreneurs starting their own label, a loan is something that the majority of the population now relies on where to pursue higher education or to start a business. HDB Financial Services Limited has now started their lending services fully-fledged, providing a variety of loans that can be distinguished as secured or unsecured to their customers.

    One other service to note down is the Business Process Outsourcing services, which is nothing but when companies subcontract various business affiliated operations to some third-party merchant. The Business Process Outsourcing services by HDB Financial Services Limited focuses on delivering back office services which include:

    • Form processing or queries related to form processing
    • Identification and verification of documents
    • Services that deals with finance and accounts
    • Communication administration

    HDB Financial Unlisted Share – Current Asset Count

    Going by the official database given by HDB Financial Services Limited, the company’s asset count speaks a lot about the success which the company earning. The company has a total equity value of around Rs 8,018.2 Crores, which is still lesser than the companies’ total revenue count which is Rs 10,756 Crores where the profit after Tax value stands around Rs 1,004 Crore.

    The current given stats are however not shocking, as the company’s revenue has been climbing peaks with a CAGR of 34% from the previous 4 years. Along with the company’s profit count, the operating profit also has been increasing with a CAGR of 23%.

    HDB Financial Services Limited has also experienced a very fruitful raise in its net interest margin which has been increasing from 5.7% to 6.8%. all in all when we eye these facts the company’s IPO shares seem like a very good investment, as the stock is fairly priced at these levels and the company is very likely to come up with an IPO in the year 2020.

    HDB Financial Services – Planned Investments

    The Company highly relies on its parent company when the subject of investment or funding arises. The HDFC Bank has been one of the key investors of the company, which again is a plus point as HDB Financial Services Limited is backed up by the major players in the industry which directly put their shares into a safer zone, thus the IPO investments in this company are very less likely to be in loss.  Along with this, HDB Financial Services Limited has now even joined hands with Maruti Suzuki to provide car loans to their customers, i.e. the company has great sponsorship and as well as a profitable alliance in the industry.

    Few of the other investors of HDB Financial Services Limited can be counted as Premji invest and Pi opportunities fund. However, around 95% of the company’s shareholdings go to the promoters while 5% go to the public.

    HDB Financial Services – Sector & Revenue Status

    The sectorial review of HDB Financial Services Limited can be done, as the market has enough competition to weigh the company on record of the peers and as well as the sectorial position. The HDB Financial Services Limited is highly esteemed among the competition, while it should be noted that bank and say Non-banking financial companies P/E ratio shall not be used given the income in this very sector, however, continued to remained extremely unstable.

    However, talking about the revenue status of HDB Financial Services Limited, it’s been noticed that the company has been experiencing a lower profit margin as compared to its other peers in the industry. while going by the record HDB Financial Services Limited’s PAT data, which stood around a value of 949 crores in the year 2020, while which was around 1149 Crores in the year 2019, thus showing a very flat dip of around 17%.

    HDB Financial Services – Various Divisions & Subordinate

    HDB Financial Services Limited has a very strong standpoint in the industry given that they are backed up by the HDFC bank. However, it can be said that HDB itself is a subordinate or a subsidiary company to HDFC bank, given which the company receives major investments and funding through the HDFC bank and also has maintained quite a good stand record when it comes to revenue collection in the industry.

    HDB Financial Services Pre IPO Industry at a glance  

    The non-banking industry in India used to be a new field to explore around some 15 years back. However, now thanks to the growth which the nation has experienced in various sectors the industry is booming and also making a place for itself.  The non-banking financial companies and an HFC in the very year 2018-19 continued to cast a major influence on the Non-banking sector throughout the year, the non-banking financial sector according to the record witnessed stress in their asset quality and revenue collection during the first half of the year 2019-20.

    However, the economy has been majorly speaking in the favor of the non-banking financial companies, given the gross NPA ratio has increased from the previous 6.3% to 6.3% by the end of September 2019 within just six months.  The overall NA ratio, however, did not move and remained at its initial value of 3.4% between the same times periods that is March 2019 – September 2. Going in-depth about the non-banking finance industry, the RBI also cut interest rates to their lowest in the past 20 years of record, the cut down being 4%, which as result obligated the banks to cut rates for FDs. The following updates and changes by the RBI are expected to result in liquidity in the markets in the coming quarters.

    HDB Financial Services – Enterprise Potential

    HDB Financial Services Limited has been maintaining a very good ratio regarding profit and growth. The major share of which should be easily given to the company’s parent company, that being – HDFC bank and as well as the company’s ever evaluating business models, it is said and known that HDB Financial Services Limited has adapted various inputs in the count to serve the maximum clients. However, the company’s growth can be easily estimated by taking into note that the total revenue of the company has been increasing with a rapid CAGR of around 34% counting from the last four years. Apart from the revenue growth, taking into consideration the operating profit rates of the company, which has been increasing with a CAGR of 23%.

    HDB Financial Services Unlisted Shares – Overall Counsel

    Productivity – considerably growing with a good margin

    In service Effectiveness – creating new profit periphery Records with every quarter

    Operating Margin – meets Expectations

    Overall Turnover Margin – better than the competition

    Assets Competence Proportion – Exceptionally positive

    Gross NPA and Net NPA – remarkably outstanding

    Aggregate Revenue – Very Positive

    Operating Turnover – better than competitors.

    Profit after Tax – Positive

    Book Value – Stands up to the expectations

    Competitive Peers and Their Valuation – fairly valued

    P/B Ratio – can be better

    EV / EBITDA – Advantageous

    ROE – Exponentially well going

    ROA – on a positive side

    Capital Adequacy Ratio – Superior


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      HDB Financial Services Stocks – Financial Statement

      We will be putting HDB Financial Services Limited’s financials in light with the help of their balance sheet and as well as their profit and loss statement.

      Balance sheet

      The ROE with which HDB Financial Services Limited is going forward in the industry is around 16%, counted as of the year 2019. However, the industry average ROE is around 21%. Thus, the company’s ROE as compared to the industry average is low.

      Profit and Loss

      1. HDB Financial Services have a growth that is not just comparable but also higher than the industry growth rate. The revenue growth of the company has increased by a fair 33% while the industry average is only 24%.
      2. However, the company is a little behind in terms of profit growth when compared to the industry average. The industry average profit rate is around 25% while the HDB Financial Services’ profit growth stands at a value of 15.4%.

      HDB Financial Services – Annual Report Links

      1. 2015-2016: https://www.hdbfs.com /sites/default/files/reports/Annual-Report-2016.pdf
      2. 2016-2017: https://www.hdbfs.com/sites/default/files/reports/HDBFS%20Annual%20Report%202017.pdf
      3. 2017-2018: https://www.hdbfs.com/sites/default/files/reports/HDBFS%20Annual%20Report%202018.pdf
      4. 2018-2019: https://www.hdbfs.com/sites/default/files/reports/Annual%20Report%202018-%202019.pdf
      5. 2019-2020: https://www.hdbfs.com/sites/default/files/reports/HDBFS%20Annual%20Report%202020.pdf

      FAQ on HDB Financial Services Unlisted Share

      Can I buy HDB Financial Services Pre IPO shares?

      You can choose to go get in touch with your stock broker or local bankers regarding Unlisted shares investment. If you are enthusiastic about investing in HDB Financial Services shares that are not listed in centralized exchanges, you sure can buy them via other intermediaries.

      Is HDB Financial Services Pre-IPO investing good?

      Strategic form of investment alike listed shares investment is crucial. Herein, you need to check for the company financials and keep a frequent check on its news and recent changes. We would also provide you a heads-up on the same by giving you the best price of companies’ unlisted shares. Check Snapshot, Company reputation, Industry Experience, management performance, and more.

      How do I buy HDB Financial Services unlisted shares?

      There are multiple ways in which you can take a buying step of HDB Financial Services Pre-IPO Stock. Search for the brokers and dealers who deal in the Over-The-Counter market. Get in touch with Top10stockbroker or visit the website to check for the latest Deals. Furthermore, you can Fill-up the contact form with your details and we will get back to you as soon as possible.

      How do you value HDB Financial Services pre-IPO stocks?

      One of the multiple HDB Financial Services Pre-IPO Shares valuation methods is finding the FMV or Fair Market Value. You can use the discounted cash flow method or the book value method to encounter a close to the value of the stocks. Furthermore, you can attempt a comparative analysis of the said shares from multiple stock broker’s websites.

      How do I sell HDB Financial Services unlisted shares?

      The process and intermediaries to sell HDB Financial Services Unlisted Shares is the same as buying. You can get in touch with your financial intermediary and place a sell order request. This will follow up with a price negotiation process, which is time taking, post which an agreement can be reached. This is when the sell order would actually be executed.

      Which is the best platform to buy/sell HDB Financial Services unlisted shares?

      We at Top10stockbroker.com provide you the feasibility of buying and selling unlisted shares. It is the perfect hub for dealing in HDB Financial Services Unlisted Shares, which lets you connect with the right buyer or seller. As per an in-depth comparison with other websites, you would most likely find low and affordable investment options with us.

      How to sell HDB Financial Services unlisted stocks?

      If you are Employees /ex-employees holding the shares, investors/promoters of the HDB Financial Services Company,  the stock exchange dealers, or any third party holding the unlisted shares. You can choose our platform to sell the HDB Financial Services Unlisted Equity Shares at a price range favorable for you. Negotiation is a part of the process.

      Can an NRI buy HDB Financial Services unlisted shares?

      Yes, there is complete relaxation for an NRI for investing in HDB Financial Services Unlisted Shares. NRIs can invest in the unlisted shares like resident individuals, but they have to go for a non-repatriable basis. In case of willingness to opt for a repatriable basis, there is a condition of reporting to RBI.

      Why do investors buy unlisted shares?

      Unlisted shares are also referred to as Hidden Gems. It is on account of the profit-making potential they contain since investors become part of the company growth. They can fetch investors exponential returns, without having to comply with SEBI Regulations. Other perks are No STT and lower stockbroking charges.

      Who sells unlisted or Pre-IPO shares?

      Existing shareholders are the perfect medium to buy unlisted shares. They include parties such as Employees, Ex-employees, CEO, Promoters, Private Equity investors, and more. You can get in touch with them and other financial intermediaries through our website Top10stockbroker.com.

      How long one should hold to see gains in unlisted shares?

      The minimum time limit deemed as likely for exponential gains is 3 years. Accordingly, investors must invest in shares for provided permissible limit for the minimum front. For extended returns, investors can wait for the company to actually go public and grow beyond, the saturation point.

      How much ROI to expect from unlisted /Pre-IPO shares?

      The ROI is not stagnant or similar for each company. It differs on the basis of Line of business, investment period, managerial capability, and the buying price of the shares. Generally, though there is no guarantee of return on investment, 25% p.a. can be deemed as the likely return.

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