Following Q2 earnings, HDB Financial shares drop below the IPO price.

Shares of HDB Financial Services Ltd., the non-bank lending arm of India's largest private lender HDFC Bank Ltd., opened lower on Thursday, October 16, slipping below their IPO price after the NBFC reported a mixed performance in its second-quarter earnings. Morgan Stanley has an 'Equalweight' rating on HDB Financial Services, with a price target of ₹805. PAT beat Morgan Stanley's estimate on a 6% operating profit beat, driven by higher NII and lower operating costs. Credit costs, bad loan formation, and write-offs were elevated, but Stage 2 loans remained stable QoQ. Morgan Stanley has raised FY26 EPS by 4% on higher NIM, while trimming FY27/FY28 EPS by 0.4%/3%.