HDFC Securities Ltd Unlisted Shares

Are you looking to invest in a market leader with the backing of India’s largest private sector bank? HDFC Securities Limited is the stockbroking and distribution wing of the prestigious HDFC Group and a subsidiary of HDFC Bank. With a 20+ year legacy, a pan-India presence, and consistent financial outperformance, HDFC Securities is a blue-chip opportunity in the unlisted market.

A Legacy of Trust:

• Founded: 2000 as a joint venture between HDFC Bank, HDFC Ltd., and Indocean eSecurities Holdings.

• Current Structure: HDFC Bank acquired full control in stages (2006 & 2008), making HDFC Securities a wholly-owned subsidiary of the nation’s most trusted bank.

• Affiliations: An esteemed member of both the BSE and NSE , ensuring regulatory compliance and market credibility.

Massive Reach & Digital Leadership:

• Physical Footprint (as of March 2020): 262 branches across 161 cities in India.

• Digital Edge: A highly acclaimed online trading portal and multiple digital platforms ensure seamless access for a growing base of professional and retail traders.

Financial Performance – A Track Record of Excellence:

HDFC Securities has delivered phenomenal growth over the years, with a significant acceleration post-pandemic.

5-Year Financial Snapshot (2016-2022):

Key Takeaways:

• Income Growth: Total income nearly 5x from ₹402 Cr (2016) to ₹1,990 Cr (2022).

• Profit Growth: PAT grew ~4.9x from ₹202 Cr to ₹984 Cr in the same period.

• Shareholder Returns: Dividend per share increased from ₹20 to an impressive ₹547 , showcasing strong cash generation and a shareholder-friendly approach.

Latest Performance: 6MFY25 vs 6MFY24 (Blowout Growth)

HDFC Securities continues its stellar run in the first half of FY25:

The company maintains exceptional profitability, with Operating Margins consistently above 72% and Net Profit Margins around 35-36% .

Current Valuation (As of August 2023):

• Unlisted Share Price: ₹12,400 per share

• Total Outstanding Shares: 1.583 Crore

• Market Capitalization: ~₹20,000 Crore

• Earnings Per Share (FY23): ₹489

• Price-to-Earnings (P/E) Ratio: 25x

Why HDFC Securities Stands Out:

• Unmatched Parentage: Backed by HDFC Bank, providing immense trust, stability, and cross-selling opportunities.

• Market Leadership: One of the pioneering and most recognized broking houses in India.

• Consistent Growth: A decade-long track record of increasing revenues, profits, and dividends.

• High-Quality Earnings: Stellar operating margins reflect a lean, efficient, and scalable business model.

• Recurring Revenue Stream: The broking business benefits from a growing retail investor base in India.

The Opportunity:
At a P/E of 25x, HDFC Securities offers a relatively reasonable entry point into a high-quality financial franchise with a dominant market position and the backing of India’s most valuable bank. The recent 6MFY25 results (58% revenue growth) indicate the company is firing on all cylinders.

Ready to Own a Piece of India’s Broking Legacy?

Buy Unlisted Shares of HDFC Securities Ltd exclusively through Unlisted Network.

Invest in the gold standard of Indian stock broking.