&w=3840&q=100)
HDB Financial shares slip 4% post Q1 results; should you buy, sell or hold?
CATCH STOCK MARKET LIVE UPDATES TODAY
HDB Financial Services Q1FY26 results
Earlier on Tuesday, July 15, the NBFC posted their first quarterly earnings since their market debut, post-closing hours. During the quarter under review, its net interest income (NII) during Q1FY26 rose 18.3 per cent Y-o-Y to ₹2,092 crore, while non-interest income increased nearly 8 per cent Y-o-Y to ₹330 crore. HDB Financial's credit cost jumped 62.4 per cent Y-o-Y to ₹670 crore in Q1FY26, against ₹412 crore in the corresponding period last year. In Q4FY25, credit cost stood at ₹634 crore. The company's net interest margin (NIM) stood at 7.7 per cent in Q1FY26, up from 7.6 per cent in Q4FY25.
Should you buy, sell or hold?
Prashanth Tapse, senior vice president, Mehta Equities, noted that investors are booking profits within a very short period due to earnings that disappointed street expectations. 'Despite strong loan and net interest income growth, concerns have emerged regarding asset quality and provisions, which are weighing on profitability. This is the key reason why PAT declined marginally by around 2–3 per cent,' said Tapse.
While there may be short-term consolidation in the non-banking financial company (NBFC) sector, Tapse advised long-term investors to hold their positions and consider adding more on every dip. 'The sector has already seen three to four interest rate cuts passed on to customers. This will likely put pressure on net interest margins (NIMs). So for another quarter or two—Q1 and Q2—the NBFC sector as a whole may experience some pressure. All the top five players are expected to feel the impact in terms of growth,' he explained.
That said, Tapse believes this presents a great opportunity to accumulate HDB Financial as a long-term investment. He pointed to the historical performance of HDFC Group companies: 'HDFC Bank, HDFC Life, and HDFC AMC all consolidated for years before delivering strong long-term performance. I expect a similar trajectory for HDB Financial.'
Echoing similar views, Gaurang Shah, head investment strategist at Geojit, also recommended investors invest in HDB Financial Services from a long-term perspective. 'The results for just one quarter should not be taken into consideration when making long-term investment decisions in the company's shares,' said Shah.
Notably, the company's shares listed on the BSE at ₹835 per share on July 2 this year, compared to the IPO issue price of ₹740.
For those who missed the HDB Financial Services IPO, Shah suggested that it may be a good opportunity to buy the stock for the long term if the price comes close to the IPO issue price.
Notably, analysts at Geojit had recommended investors subscribe to the public issue of HDB Financial Services, citing its diversified lending portfolio, strong parentage support, omni-channel distribution platform, granular lending model, expanding customer base, asset quality, and promising growth prospects. ALSO READ |
Here's what technical charts suggest
From a technical point of view, Hardik Matalia, derivative analyst, Choice Broking, believes that the HDB Financial stock has immediate support at ₹800, with a stronger cushion placed around ₹777. 'As long as the stock sustains above its IPO price of ₹700, it remains a good candidate for buying on dips. Investors who received IPO allotment and were aiming for short-term gains may consider booking profits at current levels. However, those with a long-term view can continue to hold and look to accumulate further on declines,' said Matalia.
For those who missed the IPO, Matalia believes that this range-bound phase offers an opportunity for partial accumulation, with plans to add more on any meaningful corrections. 'Overall, the price action indicates stability around key support zones, making it a stock to watch in the coming sessions,' said Matalia.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
375% returns in four years! Multibagger stock to be in focus on Wednesday; here's why
Multibagger stock: Pavna Industries shares will be the focus of stock market investors on Wednesday, 6 August 2025, after the company announced an additional land acquisition move of 4.96 acres close to Noida's Jewar Airport, according to an exchange filing. 'Pavna Industries has announced the acquisition of an additional 4.96 acres of land in close proximity to the Jewar Airport in Uttar Pradesh,' the company informed BSE through the filing. According to company data, Pavna Industries acquired 4.64 acres of land near the Jewar Airport in July 2025. 'Our combined landholding of over 9.6 acres in this area lays the foundation for a multi-phase growth strategy that will allow us to augment production, integrate advanced manufacturing technologies, and better serve our growing client base across automotive segments. It's a step aligned with our ethos of continuous improvement and delivering value to all stakeholders,' said Swapnil Jain, the managing director of Pavna Industries. The company manufactures automotive parts for reputed OEMs serving different vehicle segments, including passenger vehicles, two-wheelers, three-wheelers, heavy and light commercial vehicles, and off-road vehicles, according to the official data. Pavna Industries' share price closed 0.23% lower at ₹ 394.50 after Tuesday's stock market session, compared to ₹ 395.40 at the previous market close. The company announced the business update of the land acquisition move after market operating hours on 5 August 2025. Shares of the auto component maker have given stock market investors more than 375% returns on their investments in the last five years. However, Pavna Industries shares have lost 13.25% in the last one-year period. On a year-to-date (YTD) basis, the shares have lost 18.09% in 2025 and are trading 2.81% lower in the last five market sessions on the Indian stock market. Pavna Industries' shares hit their 52-week high level at ₹ 759.55 on 14 October 2024, while the 52-week low level was at ₹ 295.20 on 3 March 2025, according to the data collected from the BSE website. The auto component maker's market capitalisation (M-Cap) stood at ₹ 550.45 crore as of the stock market close on Tuesday, 5 August 2025. Read all stories by Anubhav Mukherjee Disclaimer: This story is for educational purposes only. 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.
The Print
2 hours ago
- The Print
Stock markets slide ahead of RBI policy decision, selling rush in RIL, HDFC Bank
The broader NSE Nifty fell 73.20 points or 0.30 per cent to close at 24,649.55. During the session, it slipped by 132.45 points or 0.53 per cent to 24,590.30. The 30-share BSE Sensex fell by 308.47 points or 0.38 per cent to close at 80,710.25. During the day, it declined 464.32 points or 0.57 per cent to hit an intraday low of 80,554.40. Mumbai, Aug 5 (PTI) Equity market benchmark indices Sensex and Nifty ended lower on Tuesday amid selling in oil & gas and banking shares ahead of the Reserve Bank's monetary policy announcement. Among Sensex shares, Adani Ports, Reliance Industries, Infosys, ICICI Bank, Eternal, BEL, HDFC Bank, Power Grid, ITC and Sun Pharmaceutical were the major laggards. However, Titan, Maruti, Trent, Bharti Airtel, Bajaj Finance, Tech Mahindra, State Bank of India, L&T, HCL Technologies and NTPC were among the gainers. The BSE smallcap gauge went lower by 0.27 per cent and the midcap index by 0.14 per cent. Among sectoral indices, Oil & Gas fell by 0.96 per cent, Energy by (0.74 per cent), FMCG by (0.61 per cent), Services and Focussed IT by (0.59 per cent each), IT and Realty by (0.52 per cent each) and Healthcare by (0.48 per cent). Auto, Power, Capital Goods, Commodities, Industrials, Consumer Durables, Metal and Telecommunication were the only gainers. 'Despite positive global cues, domestic markets remained rangebound in negative territory. Oil & gas stocks led the decline amid concerns about future import restrictions on Russian oil. Weakness persisted on Pharma and IT stocks which are among the largest exporters to the US. Sentiment was also weighed by INR depreciation. 'In contrast, auto stocks continue to gain traction from July volumes,' Vinod Nair, Head of Research at Geojit Investments, said. Investors are now awaiting the upcoming RBI policy decision, where market has marginal expectations of a rate cut, in the near-term. Currently, the preferences of investors are for domestic consumption-driven stocks and sectors holding limited volatility to external factors, Nair added. The RBI Governor Sanjay Malhotra-headed rate-setting panel started the three-day deliberations to decide the next bi-monthly monetary policy on Monday. The six-member monetary policy committee (MPC) will announce the outcome on Wednesday. According to Ajit Mishra, SVP, Research at Religare Broking, 'Lingering uncertainty over the tariff situation, following recent statements from the US President, along with a lack of major positive surprises from the earnings season, has been weighing on market sentiment.' In Asian markets, South Korea's Kospi, Shanghai's SSE Composite index, Hong Kong's Hang Seng and Japan's Nikkei 225 index closed in the positive territory. The European markets were trading in green. The US markets ended higher on Monday. Global oil benchmark Brent crude declined 1.02 per cent to USD 68.06 a barrel. Foreign Institutional Investors offloaded equities worth Rs 2,566.51 crore while domestic institutional investors purchased equities worth Rs 4,386.29 crore on Monday, according to exchange data. On Monday, the 30-share Sensex gained 418.81 points to settle at 81,018.72, and the NSE Nifty jumped by 157.40 points to close at 24,722.75. PTI HG HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
&w=3840&q=100)
Business Standard
2 hours ago
- Business Standard
Prestige Estates Q1FY26 results: Profit up 1.46%, revenue grows 21.94%
Bengaluru-based real estate developer Prestige Estates Projects on Tuesday reported a consolidated net profit of Rs 311.5 crore for the first quarter of financial year 2025–26 (Q1FY26), ended 30 June 2025, marking a 1.46 per cent year-on-year (Y-o-Y) increase. The company posted revenue of Rs 2,468.7 crore during the period, up 21.94 per cent from Rs 2,024.5 crore in the same quarter last year. In a recent development, Prestige Estates Projects — directly and through its wholly owned subsidiary — acquired an additional 40 per cent partnership interest in Apex Realty Ventures LLP. Following this acquisition, Apex Realty Ventures LLP has become a wholly owned subsidiary, the company said in a filing to the BSE. Prior to this transaction, Prestige held a 60 per cent stake in Apex Realty Ventures. On the expansion front, Prestige Estates Projects plans to invest around Rs 10,000 crore over the next six years to develop a 62.5-acre township in Ghaziabad, Uttar Pradesh. This project marks its entry into the Delhi–NCR housing market and was announced in April this year. The company is also developing a commercial project in Delhi's Aerocity, which includes hotels and office spaces. In June, the company announced its intention to launch multiple residential projects across major cities in the current fiscal year, targeting an estimated revenue of over Rs 42,000 crore. The expansion aims to capitalise on strong consumer demand in the housing sector. The upcoming projects are planned for key markets including Bengaluru, Chennai, Hyderabad, Mumbai, Delhi–NCR, and Goa. The company announced its results post market hours on Tuesday. At the time, Prestige Estates Projects shares were trading at Rs 1,608.05 apiece, up 0.13 per cent on the BSE.
