ICICI Securities has issued a buy rating on HDB Financial Services with a target price of ₹900 in its research report dated March 09, 2026. According to the brokerage report, the recommendation is based on the company's blue-chip heritage and formidable low-cost borrowing moat, which provides inherent advantages for sustainable, scalable and high-margin growth. The target price is set at 3x September 2027 estimated book value per share.
HDB Financial Services has strategically built an asset franchise worth over ₹1 trillion as of FY25 in India's underserved hinterlands, with approximately 70% of branches located in tier-4+ locations. As reported by ICICI Securities, the company has delivered a >20% AUM CAGR from FY14-25, bolstering its leading NBFC status despite macroeconomic headwinds. The company maintains a decadal average credit cost of ~2%, demonstrating cycle-tested underwriting and risk-management protocols.
The company's focus on direct customer sourcing accounts for over 80% of FY25 disbursements, facilitating customer quality and operational efficiency. According to ICICI Securities, this strategy enables HDBFS to maintain strong customer relationships while maintaining operational control. The brokerage highlights that this approach supports the company's ability to deliver sustainable growth in the competitive NBFC sector.
ICICI Securities projects that HDB Financial Services will deliver ~18% AUM CAGR and ~25% PAT CAGR over FY26-28E. The brokerage initiates coverage at buy rating based on these projections, citing the company's strategic positioning and operational advantages. The research report emphasizes the company's strong fundamentals and growth potential in the financial services sector.
