HDB Financial Services Share Price Target Set at ₹900 — Is It Still a Buy After 13% Listing Surge?

HDB Financial Services Share Price Jumps After 13% Premium Listing: What Investors Need to Know

HDB Financial Services Share Price Opens Strong on Market Debut

HDB Financial Services share price made an impressive debut on the stock exchange, listing at ₹835 on July 2, 2025 — a 13% premium over its IPO issue price of ₹740. Post-listing, the HDB Financial Services share price continued to climb, reaching ₹845.75 intraday on the BSE. This strong start indicates robust market confidence, particularly after the IPO attracted bids worth over ₹1.61 lakh crore.

Institutional Interest Fuels HDB Financial Services Share Price Momentum

The IPO garnered substantial interest from institutional investors. The Qualified Institutional Buyer (QIB) segment was oversubscribed over 55 times, whereas the retail portion saw a more modest subscription of 1.4 times. Overall, the IPO was oversubscribed nearly 17 times, showcasing the solid demand that has helped drive the HDB Financial Services share price higher.

Emkay Global Sets ₹900 Target for HDB Financial Services Share Price

On the listing day, domestic brokerage Emkay Global initiated coverage of HDB Financial Services with a “Buy” rating and a target price of ₹900. This implies a potential upside of around 22% from the IPO price. The brokerage expects a 20% CAGR growth in the company’s Assets Under Management (AUM) over the next three years, which could positively impact the HDB Financial Services share price trajectory.

HDB Financial Services Share Price Valuation vs Peers

At its listing price, HDB Financial Services trades at a one-year forward price-to-book ratio of 3.4x. This valuation is lower than Bajaj Finance and Chola Investment but higher than Shriram Finance, which trades at just 2x. This relative valuation places the HDB Financial Services share price in a competitive bracket, appealing to investors seeking a balanced growth-to-value ratio.

HDB Financial Services Share Price Outlook: Key Strengths

Brokerages like Nirmal Bang remain bullish on HDB Financial Services, citing several positive factors:

• A highly granular and diversified retail loan book
• A growing customer base across India
• A strong digital infrastructure and distribution network
• Backing by HDFC Bank, enhancing credibility
• Robust liability franchise and advanced technological capabilities

These features are expected to support long-term growth, which may benefit the HDB Financial Services share price.

Business Segments Boosting HDB Financial Services Share Price

The company has a well-diversified AUM structure:

• Enterprise Finance contributes 39.9%
• Asset Finance accounts for 37.4%
• Consumer Finance comprises 22.8% as of FY25

Such diversification helps balance risk and return, potentially strengthening the HDB Financial Services share price over time.

Management Commentary on HDB Financial Services Share Price Drivers

Speaking to CNBC-TV18, the management emphasized several growth strategies:

• Strong risk management practices across cycles
• Maintaining a secured vs unsecured mix of 70:30
• Focused expansion in the consumer finance segment
• Adequate capital to meet growth aspirations
• Rate cut cycle seen as favorable for margins

These strategic steps are expected to reinforce the upward momentum of the HDB Financial Services share.

RBI Draft Circular: A Risk to HDB Financial Services Share Price?

While the outlook is optimistic, investors must consider regulatory risks. The Reserve Bank of India’s draft circular (October 2024) proposes that banks and their subsidiaries should not have overlapping business lines. If implemented, HDFC Bank may need to reduce its stake in HDB Financial Services below 20%. This could affect business operations and potentially impact the HDB Financial share price.

HDB Financial Services Share Performance: Compared to Competitors

Here’s how HDB Financial stacks up against key NBFC peers in terms of Return on Equity (ROE):

Company	FY22	FY23	FY24	FY25 (Est.)
HDB Financial	11.2%	18.7%	19.5%	14.7%
Chola Finance	20.4%	20.6%	20.6%	19.8%
Shriram Finance	11.1%	14.8%	15.6%	15.7%
Bajaj Finance	17.4%	23.5%	22.0%	19.2%

Although its ROE trails some peers, HDB Financial Services offers strong growth prospects, keeping the HDB Financial share price in focus for medium to long-term investors.

HDB Financial Services Share Price: Analyst Takeaways

Anand Rathi also flagged a crucial risk. If the RBI’s proposal becomes policy, the promoter group may be compelled to reduce its shareholding, which could weigh on the HDB Financial Services share in the short term. Still, analysts believe the stock has the right combination of strong fundamentals and strategic focus.

Final Thoughts on HDB Financial Services Share

India’s largest IPO of 2025 has made a powerful start, with the HDB Financial Services share price delivering a 13% listing gain. With institutional interest, growth momentum, and positive brokerage sentiment, the share price could continue to perform. However, investors should watch regulatory developments closely.

As always, do your due diligence and consult with a financial advisor before making investment decisions based on HDB Financial Services share price trends.

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