Shares of HDB Financial Services climbed 5% after Emkay Global Financial Services initiated coverage on the stock with a ‘Buy’ rating and a target price of ₹900. The brokerage sees a combination of favourable internal execution and an improving external environment supporting long-term growth. As of 9:44 AM, the shares were trading 4.33% higher at Rs 877.40.
Emkay noted that HDB Financial has laid out a clear strategy and has shown consistent execution, which positions it well for future performance. The company’s loan book is expected to grow at a compound annual rate of 20% over FY25–28, with earnings per share (EPS) projected to rise by 27% annually during the same period.
Improving sectoral conditions and the company’s ability to maintain profitability are expected to support a re-rating of the stock in the coming years. HDB Financial’s focus on building a stable asset mix and strengthening its operating metrics has been a key factor in this positive outlook.
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