HDFC Securities Ltd - Unlisted Shares
Fundamentals
- Current Price
- ₹9,600
- Market Cap
- ₹15,281.76 Cr
- ISIN
- INE700G01014
- Face Value
- ₹10
- P/E Ratio
- 15.11
- EPS
- 635.21
- P/B Ratio
- 5.08
- Book Value
- 1891.3
- Debt / Equity Ratio
- 0.06
Key Financials
Profit & Loss
| Metric | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 |
|---|---|---|---|---|---|---|---|
| Revenue from Operations | 3263.80 | 2660.12 | 1891.27 | 1975.57 | 1368.16 | 857.47 | 770.56 |
| Growth % | 23% | 41% | -4% | 44% | 60% | 11% | 0 |
| Operating Expenses | 913.89 | 724.88 | 496.4 | 471.4 | 364.5 | 294.1 | 256.6 |
| Growth % | 26% | 46% | 5% | 29% | 24% | 15% | 0 |
| Operating Profit | 2349.91 | 1935.2 | 1394.9 | 1504.2 | 1003.7 | 563.4 | 513.9 |
| Op. Profit Margin % | 72.0% | 72.8% | 73.8% | 76.1% | 73.4% | 65.7% | 66.7% |
| Other Income | 0.75 | 0.61 | 0.4 | 14.7 | 31.3 | 4.8 | 0.1 |
| Interest Expense | 785.45 | 600.5 | 295.9 | 156.3 | 53.1 | 28.8 | 0.1 |
| Depreciation | 69.62 | 63.92 | 57.5 | 42.3 | 36.3 | 30.4 | 18.6 |
| Profit Before Tax | 1495.59 | 1271.4 | 1041.9 | 1320.3 | 945.6 | 509.0 | 495.3 |
| Tax | 371.13 | 320.54 | 264.7 | 336.0 | 242.4 | 124.9 | 165.4 |
| Tax % | 25% | 25% | 25% | 25% | 26% | 25% | 33% |
| Profit After Tax | 1124.46 | 950.9 | 777.2 | 984.3 | 703.2 | 384.2 | 329.9 |
| Growth % | 18.3% | 22.3% | -21.0% | 40.0% | 83.1% | 16.5% | 0 |
| PAT % | 34% | 36% | 41% | 50% | 51% | 45% | 43% |
| Diluted EPS | 635.21 | 597.35 | 489.8 | 621.8 | 446.5 | 245.9 | 210.6 |
Company Financials
| Metric | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 |
|---|---|---|---|---|---|---|---|
| Trade Receivables | 1176.54 | 1286.57 | 407.27 | 505.86 | 439.61 | 165.38 | 659.11 |
| Cash & Cash Equivalents | 5693.44 | 5375.85 | 3591.9 | 3598.83 | 2178.35 | 1967.95 | 582.19 |
| Other Financial Assets | 6799.36 | 7123.03 | 4000.26 | 3588.27 | 1953.95 | 481.40 | 695.18 |
| Total Financial Assets | 13669.34 | 13785.45 | 7999.43 | 7692.96 | 4571.91 | 2614.73 | 1936.48 |
| Fixed Assets (incl. WIP) | 147.84 | 62.09 | 81.63 | 98.71 | 81.47 | 111.61 | 55.25 |
| Other Non Financial Assets | 213.48 | 255.53 | 195.48 | 130.87 | 105.53 | 44.20 | 45.48 |
| Total Non Financial Assets | 361.32 | 317.62 | 277.11 | 229.58 | 187.00 | 155.81 | 100.73 |
| Total Assets | 14030.66 | 14103.07 | 8276.54 | 7922.54 | 4758.91 | 2770.54 | 2037.21 |
| Borrowings | 202.25 | 0.00 | 996.27 | 4619.14 | 2040.43 | 690.91 | 0.00 |
| Other Financial Liabilities | 10,383.87 | 11996.89 | 5429.15 | 1494.73 | 1102.68 | 719.40 | 747.57 |
| Total Financial Liabilities | 10,586.12 | 11996.89 | 6425.42 | 6113.87 | 3143.11 | 1410.31 | 747.57 |
| Tax Liabilities (Deferred and Current) | 3.97 | 11.10 | 5.46 | 4.59 | 1.79 | 1.79 | 12.86 |
| Provisions | 24.44 | 15.01 | 14.60 | 117.33 | 87.47 | 71.32 | 65.33 |
| Other Non-Financial Liabilities | 68.11 | 50.83 | 33.92 | 28.84 | 46.23 | 39.53 | 17.69 |
| Total Non-Financial Liabilities | 96.52 | 76.94 | 53.98 | 150.76 | 135.49 | 112.64 | 95.88 |
| Equity Capital | 17.77 | 15.97 | 15.89 | 15.83 | 15.77 | 15.73 | 15.61 |
| Reserves | 3,330.25 | 2013.27 | 1781.25 | 1642.08 | 1464.54 | 1231.87 | 1178.15 |
| Total Equity | 3,348.02 | 2029.24 | 1797.14 | 1657.91 | 1480.31 | 1247.60 | 1193.76 |
| Equity + Liabilities | 14030.66 | 14103.07 | 8276.54 | 7922.54 | 4758.91 | 2770.55 | 2037.21 |
Shareholding Pattern
- HDFC Bank Limited
- 95.13%%
- Others
- 4.87%%
Strengths & Weaknesses
Strengths
- Strong Parentage: HDFC Securities (HSL), a subsidiary of HDFC Bank with around a 95% stake, enhances the bank's service offerings. It benefits from customer sourcing, cross-selling opportunities, and access to HDFC Bank's retail clients and extensive branch network
- Established Player In Retail Broking: HSL is a full-service securities brokerage primarily focused on retail, with about 99% of its broking volumes in the first nine months of FY2024 coming from the retail segment. Its strong retail presence is bolstered by its status as a subsidiary of HDFC Bank.
- Increasing Gearing Ratio: HSL’s gearing ratio increased to 4.4x as of December 31, 2023, up from 2.9x on March 31, 2023, 2.8x on March 31, 2022, and 0.6x on March 31, 2020.
- Strong Market Position: HSL ranks among the top equity brokers by active clients, with 1.03 million active customers on the NSE as of June 30, 2023. It holds a market share of approximately 3.4% in active clients and has a stronger presence in the high-yielding cash segment.
- Profitability: HSL has maintained strong profitability, with a 4-year average net profit (PAT) to net operating income (NOI) ratio of 51.0% and a return on equity (RoE) of 47.6% between FY2020 and FY2023.
Weaknesses
- Capital Market Risks: The cyclical nature of the brokerage industry means that HDFC Securities' trading volumes and earnings are closely linked to capital market activity, leading to potential volatility in profitability.
About HDFC Securities Ltd
HDFC Securities Limited (HSL), a subsidiary of HDFC Bank, specializes in securities broking. Founded in 2000 as a joint venture between HDFC Bank, HDFC Limited, and Indocean eSecurities Holdings, it aimed to provide capital market services, including broking and financial product distribution
Board of Directors
- Neeraj Swaroop - Independent Director & Chairperson
- Dhiraj Relli - CEO/MD
- Amla Samanta - Director
- Samir Bhatia - Director
- Tarun Balram - Director
- Malay Patel - Director
- Arvind Vohra - Director
- Bhavesh Zaveri - Director
- Ashish Rathi - Director
Senior Management
- DHIRAJ RELLI - CEO/MD
- ASHISH RATHI - DIRECTORS
- ANAND MATHUR - CFO
- MITUL PALANKAR - COMPANY SECRETARY
- MURLI VIJAY KARKERA - COMPLIANCE OFFICER
Frequently Asked Questions
- Is there any lock in period for HDFC Securities Ltd unlisted shares?
- The lock-in period for HDFC Securities Ltd Unlisted Shares differs based on the investor category, as per SEBI regulations:
● Venture Capital Funds and Foreign Venture Capital Investors (FVCIs):
A lock-in period of 6 months from the date of acquisition of the shares.
● Alternative Investment Funds – Category II (AIF-II): No lock-in period is applicable.
● Other investors (including retail investors, high net-worth individuals (HNIs), and body corporates):
A lock-in period of 6 months from the date of IPO listing of HDFC Securities Ltd.
These norms were introduced by SEBI in August 2021, reducing the earlier lock-in requirement from one year to six months. The change was aimed at improving liquidity and encouraging investor participation in companies preparing for public listings. Since then, interest in pre-IPO investments has increased, with investors exploring opportunities to participate in companies ahead of their potential listing. - How much long term capital gains tax do I have to pay on HDFC Securities Ltd unlisted shares?
- Long-Term Capital Gains (LTCG) on Unlisted Shares in India arise when such shares are sold after being held for a period of more than two years. The key aspects of LTCG taxation on HDFC Securities Ltd unlisted shares are outlined below:
1. Tax Rate
Earlier, LTCG on unlisted shares was taxed at 20% with indexation benefits. However, as per Union Budget 2024, the tax structure has been revised. For transfers made on or after 23rd July 2024, LTCG on unlisted shares is taxed at a flat rate of 12.5%.
2. Indexation Benefit
Previously, investors could avail indexation benefits to adjust the purchase price for inflation, thereby reducing taxable gains.
This indexation benefit has been removed under Budget 2024 for unlisted shares transferred on or after 23rd July 2024.
3. Importance for Investors
Understanding LTCG taxation is important for both retail investors and High Net-Worth Individuals (HNIs), as it directly impacts investment returns, exit planning, and overall tax strategy.
4. Calculation Method
For eligible transactions after 23rd July 2024, LTCG will be calculated at a flat tax rate of 12.5% on the capital gains, without indexation.
5. Applicability
LTCG tax is applicable when unlisted shares are held for more than 24 months before being sold.
6. Relevance
These tax provisions are particularly relevant for investors in the unlisted share market who are considering exiting their investments after a long-term holding period. - How do I start investing in HDFC Securities Ltd unlisted shares through InCred Money?
- Buying HDFC Securities Ltd Unlisted Shares on InCred Money is quick, seamless, and fully digital.
Step 1: Create Your Account
Sign up using your mobile number and email ID.
Complete your KYC by submitting your PAN, Aadhaar, bank account, and demat account details. Once submitted, your KYC is reviewed and approved.
Step 2: Select & Buy Shares
Browse and select HDFC Securities Ltd from our Unlisted Shares list and place your order.
Step 3: Share Transfer
Based on the settlement period for the shares noted on the platform, the purchased shares are transferred and reflected in both your InCred Money portfolio and your demat account. - What documents are needed to invest in HDFC Securities Ltd unlisted shares?
- To invest in HDFC Securities Ltd Unlisted Shares on InCred Money, you need to complete your KYC verification by submitting the following documents:
● PAN Card
● Aadhaar Card
● Bank account details
● Demat account details
Once your KYC is successfully completed and approved, you can start investing in unlisted shares on the platform.
