Emkay Global sees 22% upside for HDB Financial shares post IPO upper band.
By : Krishna Mishra
Even before its market debut, domestic brokerage Emkay Global has initiated coverage on HDB Financial Services with a bullish outlook. The firm cites the company’s strong customer base, wide product and geographic diversification, and large operational scale as key strengths.
Emkay praised HDB Financial for its highly granular lending portfolio—its top 20 accounts make up just 0.34% of total assets under management (AUM). With over 1.9 crore customers, the non-banking financial company has successfully weathered multiple credit cycles, including the COVID-19 period, all while being built from the ground up.
The brokerage has issued a 'buy' rating, setting a target price of ₹900 per share, representing a potential 22% upside from the IPO's upper price band of ₹740.