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News for India > Business > HDB Financial Services share price extends gains after decent listing; Should you buy, hold or sell? | Stock Market News
Business

HDB Financial Services share price extends gains after decent listing; Should you buy, hold or sell? | Stock Market News

Last updated: July 2, 2025 12:20 pm
11 months ago
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HDB Financial Services share price extended gains after making a decent debut in the Indian stock market today. HDB Financial Services shares were listed on BSE and NSE today, 2 July 2025, after its recently concluded initial public offering (IPO).

HDB Financial Services shares were listed at ₹835 on NSE and BSE, a premium of 12.84% to its issue price of ₹740. The stock witnessed buying momentum after listing and made a high of ₹845.75 apiece on the BSE, gaining over a percent from its listing price.

The ₹12,500-crore HDB Financial Services IPO was open for subscription from June 25 to June 27. HDB Financial Services IPO listed date was today, July 2.

Also Read | HDB Financial Services shares list at ₹835, a premium of 12.84% from IPO price

HDB Financial Services IPO listing was in line with the Street expectations and the trends in HDB Financial Services GMP today, or grey market premium today. Analysts weigh on what should be investors’ strategy for the stock after HDB Financial Services IPO listing.

Should you buy, sell or hold HDB Financial Services shares after listing?

Prashanth Tapse, Research Analyst at Mehta Equities said that HDB Financial Services listing was in line with expectations, reflecting strong investor appetite.

“Given the healthy listing prevailing bullish sentiment in the market, we recommend holding HDB Financial Services shares for the long term, as the company is strategically positioned to benefit from India’s structural credit growth, especially within the retail and SME financing segments,” said Tapse.

For Non-allotted investors those who did not receive any allotment, Tapse suggests to consider accumulating on any post-listing corrections, particularly during short-term volatility triggered by broader market movements.

“As we see HDB Financial Services offers a value-driven opportunity with both defensive and growth characteristics, best suitable for investors with a 3–5 year investment horizon,” he said.

Also Read | HDB Financial Services Share Price Live: Stock trades flat post a strong debut

Tarun Singh, Founder & MD, Highbrow Securities said that the 13% listing premium strikes a measured note, respectable without being euphoric, much like HDB Financial Services itself. The market appears to have carefully weighed its dual proposition, the stability of HDFC lineage against the challenges of a maturing NBFC sector.

“The moderate premium suggests the street views this as a steady compounder rather than a high-growth story, a fair assessment given its 14% RoE and diversified book. Moving forward, HDB’s ability to translate its parentage into consistent returns will determine whether today’s listing proves to be a starting point or a peak. For now, it stands as a thoughtful addition to India’s financial services landscape neither revolutionary nor disappointing, but importantly, credible, said Singh.

According to Bhavik Joshi, Business Head, INVasset PMS, HDB Financial Services listing, though modest with a 12% premium, reinforces the market’s calibrated optimism.

“Post-listing, HDB Financial Services shares may see institutional accumulation on dips, but for long-term investors, this listing is less about day-one pop and more about participating in a high-quality compounder in India’s formal credit cycle,” Joshi said.

Also Read | HDB Financial Services shares gets ‘Buy’ call from Emkay Global ahead of listing

Brokerage firm Emkay Global Financial Services initiated coverage on HDB Financial Services shares with a ‘Buy’ rating and June 2026 target price of ₹900 apiece, implying an upside of 22%, on FY27E P/B of 3.0x.

The brokerage expects HDB Financial Services to deliver 20% AUM CAGR and 27% EPS CAGR over FY25-28, driven by its strong origination network, improving capital adequacy post-IPO, and a favourable interest rate environment. It projects HDB Financial Services to achieve return on assets (RoA) and return on equity (RoE) of 2.7% and 17% respectively by FY28.

With the Reserve Bank of India (RBI) expected to implement frontloaded repo rate cuts, net interest margins (NIMs) are likely to expand, further boosting profitability.

“With a favorable interest rate cycle amid frontloaded repo rate cuts driving net interest margins (NIMs) expansion, credit cost moderation, and the growth outlook improving, HDB Financial Services is well positioned to improve profits, growth, to achieve 2.7% / 17% RoA / RoE, respectively, by March 2028, and deliver ~20% / 27% AUM / EPS CAGR over FY25-28E,” said Avinash Singh, Senior Research Analyst at Emkay Global Financial Services Ltd.

At 12:15 PM, HDB Financial Services share price was trading at ₹apiece on the BSE, higher by from its listing price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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