HDB Financial Slips After Results as Brokers Lower Targets
Quarterly profit and net interest income rose, but brokerages cited concerns about loan growth and asset quality as they cut price targets.
Key takeaways
- HDB Financial reported September-quarter profit of ₹780 crore, up 34.2% year over year.
- Nirmal Bang and JM Financial each cut their target price to ₹650.
HDB Financial Services shares fell after the company reported September-quarter profit of ₹780 crore, up 34.2% year over year. As of 04:40 UTC on Thursday, the stock traded at ₹557.85, down 4.44% since the previous close.
Net interest income increased 15.6% to ₹2,534 crore, while the gross loan book grew 12% to ₹1.24 lakh crore. Gross stage 3 loans fell to 2.43% of total loans from 2.81% a year earlier.
Nirmal Bang downgraded the stock to Hold and cut its target price to ₹650 from ₹750, citing muted assets-under-management growth. JM Financial also lowered its target to ₹650, from ₹820, but maintained its Add rating; it flagged asset-quality concerns.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
