c) Asset Finance:
D) Fee-based products
(i) Mr. Aditya Puri - Chairman & Non Executive Director
(ii) Mr. Bhavesh Zaveri - Non Executive Director
(iii) Mr. Jimmy Tata - Non Executive Director
HDFC Bank Limited holds 95.8694% Shares of HDB Financial Services as on 31.03.2018
UZ Financial Review
The company has listed peer in the name of Bajaj Finance Let us see do the comparison and arrives at the fair value of HDB Financial Services. The comparison has done by taking FY18 Financials.
1. Mcap = 169,367.86 Cr.
2. Book Value = 287.
3. Price = 2930.
4. P/B = 10.20
5. Revenue= 13000 Cr.
6. Revenue Growth of last 5 years = 34.84%
7. PAT Growth of last 5 years = 38.50%
b) HDB Financial Services Limited:
1. Revenue = 7000 Cr
2. Revenue Growth in last 5 years = 43%
3. Book Value = 79.22
4. PAT growth in last 5 years = 46%
If we give same valuation in terms of P/B of 10 to HDB Financial Services as in the case of Bajaj Finance , the Fair value as per FY18 Financials for HDB Financial Services comes out to be around 790-800 per Share.
At this price the HDB Financial Services commands a Mcap of 62000 Cr.
Recently in the last few weeks we have observed that the price of HDB Financial Services has shoot up like anything from 880 to 980 level in the anticipation of Right Issue coming. However, in the interest of Investor community we at UnlistedZone strongly believe the CMP of HDB is too high for an investor to buy.
Even the HDFC Bank which is listed company is trading at P/B of 5.7.
The HDB Financial Services at the Current Market Price is Overvalued.