India's HDB Financial down as global brokers initiate coverage with lukewarm ratings

HDB Financial Services

11/08/2025 05:46

** HDB Financial Services HDBF.NS down 1.4% at 741 rupees, near IPO price of 740 rupees

** At least 3 global brokerages initiate coverage of HDBF,  HDFC Bank's HDBK.NS recently listed NBFC arm

** BofA and UBS start at "neutral"; Morgan Stanley at "equal-weight"; PTs between 780 rupees and 800 rupees

** While HDBF has access to low cost, diversified borrowing, its profitability ratios are inferior to key NBFCs due to lower yields, higher operational spends and conservative provisioning - BofA

** Morgan Stanley flags rising bad loans, slowing loan growth over past five quarters

** UBS values HDBF at 25%-30% lower than peers Bajaj Finance BJFN.NS and Cholamandalam Investment and Finance CHLA.NS

 (Reporting by Vivek Kumar M)

 ((VivekKumar.M@thomsonreuters.com;))