New Delhi: HDB Financial Services IPO has been the biggest Initial Public Offer of 2025 so far. The company launched an issue size of around Rs 12,500 crore, which opened for subscription on June 25, 2025.

The shares of HDB Financial got listed on 2nd July at Rs 835 per equity share. However, since listing, the stock has been witnessing strong volatility. The counter touched its all-time high of Rs 891.90, however, the share price has declined to Rs 804. Many investors are thinking whether they should take the risk of investing with HDB Financial Services or not. Let’s see what brokerage firm Motilal Oswal Financial Services is suggesting.

Should you buy HDB Financial Services shares?

Motilal Oswal has maintained a ‘Neutral’ rating on HDB Financial Services. The brokerage has predicted the stock to rise and provided a target price of Rs 860. The brokerage said that the Financial Services providing company is getting strong support of HDFC Bank and experienced management. It believes that the company can achieve 19 per cent annual growth in its AUM in the next few years (2025-2028). Also, the company can increase the return on assets (RoA).

Motilal Oswal is also of the view that the lending model of HDB Financial Services is strong. The company’s AUM is good as it focuses on data-based underwriting, strict portfolio monitoring and recovery processes, the brokerage said.

The report further mentioned that the firm has been facing some macroeconomic challenges in some segments like commercial vehicles and unsecured business loans, which resulted in some pressure on the company’s AUM. Due to this, the credit cost increased. But now there are initial signs of stability in these segments. The quality of AUM is expected to improve from the second half of this year, it added.

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