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HDB Financial Q2 FY27 Analysis | ₹780 Cr Profit +34% YoY | BUY Target ₹1,650-1,850

Investment Thesis

HDB Financial Services is India’s largest pure-play retail mortgage NBFC. Q2 FY27 shows exceptional momentum: ₹780 Cr profit (+34% YoY), AUM growth of 28% to ₹95,000 Cr, and mortgage disbursals at record highs.

Rating: ⭐⭐⭐⭐ BUY | Price Target: ₹1,650-1,850 | Upside: +18-30%

Key Investment Drivers

✅ Mortgage Boom: Home loan demand surging; disbursals up 32% YoY
✅ NIM Expansion: Margins widening to 3.8% (credit-heavy portfolio)
✅ Credit Quality: Stage 3 assets down to 2.5% (best-in-class)
✅ Growth Pipeline: FY27-28 AUM target of ₹125,000 Cr+ (30%+ CAGR)
✅ Digital Transformation: 60% of loans through digital channels; cost efficiency play

Valuation

Current: ~₹1,400 | P/E (FY27E): 12.5x (vs 16-18x historical) | P/B: 2.1x | RoE: 22%+

Fair Value: ₹1,650-1,850 | Upside: +18-30%

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