HDFC Securities Ltd Vs. HDB Financial Services Ltd: Which Makes A Good Investment Option

Currently, several pre-IPO shares are working well in the market and offer ample reason to lure investors; among them, HDFC Securities Ltd and HDB Financial Services are the top ones. Moreover, nothing can be said with certainty when it comes to unlisted shares. However, the fact remains intact- investors will benefit in the long run! Nevertheless, HDFC Securities Ltd. and HDB Financial Services are enjoying exceptionally well market face value. Speaking of, wondering which of them offers better returns or why invest in them? We are here to answer all these burning questions – scroll down to find them. 

Reasons To Consider Investing In HDFC Securities Unlisted Shares

HDFC Securities Limited (HSL), the intermediate subsidiary of HDFC Bank, is a prominent name in full-service brokerage firms in India. The firm is known to provide services to all investors and traders who are active across various asset classes, for instance, equity, debt, and real estate. In addition to the stunning growth of the firm, there are several other reasons why one should invest in HDFC Securities Limited; below, we have listed a few; 

Access To HDFC Bank’s Huge Client Base

HDFC Securities is heavily backed by HDFC Bank, a prominent name in India regarding banking. Considering that HDFC Bank owns 96% of the stakes of the company, it is evident that HDFC Securities has access to the vast and loyal customer base of HDFC Bank. The strong clientele instils trust among new customers, investors and traders alike. Since it already has access to a vast client base, the company’s growth is predicted to be significantly profitable. 

Highly Profitable Business

Considering access to a large customer base, it is evident that the company is destined for profits. To further support the claims, HSL’s revenue growth for the fiscal year 2021 is a stunning factor. The company experienced 16% total income growth and further grew to 42.2% in the fiscal year 2022. Furthermore, the company’s net profit has also seen a 40% increment. These numbers justify that HSL has enjoyed major earnings in recent years; considering the same, significant profits are also anticipated. Therefore, if you are planning to buy unlisted shares of HDFC Securities Ltd, now is the time, as per the claims of experts from Stockify. 

Tech Adoption

When planning to buy pre-IPO shares, it is essential to consider the new advancements, growth, management team, and potential in the company’s products/services. So, if you are planning to invest in the pre-IPO shares of HSL, you must ensure that the firm has taken strides in new developments. In recent years, the technology advancements of the company have risen. Recently, it was observed that almost 10 lakh customers across India relied on digital services over walk-in services. To further signify the tech adoption of the company, know that 50% of the total income in the fiscal year 2021 was generated from digital applications and earned as much as 32% more than last year. 

Reasons To Invest In HDB Financial Securities Unlisted Shares

Mentioned below are reasons why one should invest in HDB Financial Securities

Rapidly Scaling

The company experienced significant growth of 7.9% in the year-on-year revenue between the fiscal year 2021 to 2022. HDB Financial Securities went from ₹1,985.3 crores in 2021 to ₹2,141.4 crores in 2022. Indeed the company is rapidly increasing, showcasing major growth shortly. Moreover, experts suggest that the best time to invest in unlisted shares is when the prices are low; thus, HDBFS is the ideal option for you! 

Backed By HDFC Valuation

Much like HDFC Securities, even HDBFS is also backed by HDFC Banks. Currently, the parent company holds 95% of the stakes in HDB Financial Securities, and the rest are owned by employees and open for individual investors. Even HDBFS has access to the large clientele of HDFC bank and is also backed by the stunning valuation of HDFC bank.

Apart from these two, the company also made a stunning comeback. While the pre-IPO share price halved in the year 2021, the growing demand has also led to an increase in price. 

Now that you know the reason for investing in both firms, the decision is on your financial goals and investment budget. Moreover, investing in both the pre-IPO shares is always a more feasible option. Profit is assured from both the unlisted shares over the long term, so now, all you are left to do is connect with Stockify ━ the best-unlisted shares broker in India. Our experts will help you choose the shares better suited to your goals. Furthermore, our experts will also update you on the net profit returns. So, what are you waiting for? Connect with our experts now! 

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HDFC Bank birthed HDB Financial Services and HDFC Securities Ltd, yet which is better for investing? Find all here – see if the child firm will overshadow the other!

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Piyush Jhunjhunwala
Piyush Jhunjhunwala
CA, CPA, Ex. PepsiCo, Reckitt, Coty
CEO & Founder
Dubai, UAE.
Rahul Khatuwala
Rahul Khatuwala
Ex. Wipro & Finaco Founder
Co-Founder
Bangalore, India.