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HB Stockholdings Overview

1. Business Overview

HB Stockholdings Ltd. (HBSL) is an Indian Non-Banking Financial Company (NBFC). Its core business involves financial services, primarily focusing on financing and investment activities. The company engages in lending money, investing in capital market instruments (like equities, debt, and mutual funds), and providing related financial services. It generates revenue primarily through interest income from its lending operations, as well as dividends and capital gains from its investment portfolio.

2. Key Segments / Revenue Mix

While specific breakdowns are not provided, HBSL's revenue streams typically originate from two primary segments:

Financing Activities: This includes income generated from loans and advances provided to various entities.

Investment Activities: This segment derives revenue from the company's proprietary investments in shares, debentures, and other securities, including capital gains on sales and dividend/interest income.

Given its name "Stockholdings," it is likely that investment activities contribute significantly to its overall business.

3. Industry & Positioning

HBSL operates within the diverse and competitive Indian NBFC sector, which complements traditional banking by catering to specific credit needs and customer segments. The industry is regulated by the Reserve Bank of India (RBI) and is highly sensitive to economic cycles and interest rate fluctuations. HBSL likely positions itself as a specialized or mid-sized NBFC, potentially focusing on niche lending opportunities or leveraging its investment expertise rather than broad-based retail or corporate lending like larger, more diversified NBFCs or banks.

4. Competitive Advantage (Moat)

For an NBFC of its likely size, HBSL may not possess strong, wide-ranging moats typically seen in larger financial institutions. Potential competitive advantages, if any, could include:

Niche Expertise: Deep understanding and efficient underwriting in specific lending segments or asset classes.

Agility & Flexibility: Ability to quickly adapt to market changes and cater to customer needs that larger banks might overlook.

Promoter Relationships: Strong relationships built over time, leading to business referrals or access to capital.

It is unlikely to have significant brand power, scale advantages, or strong network effects compared to established national players.

5. Growth Drivers

Economic Growth: A growing Indian economy generally leads to increased demand for credit across various sectors.

Capital Market Performance: A buoyant stock market can enhance the value of its investment portfolio and lead to higher capital gains.

Expansion in Lending Segments: Identifying and successfully penetrating new or underserved lending niches.

Efficient Asset-Liability Management: Effectively managing funding costs and lending rates to maintain healthy Net Interest Margins.

Technological Adoption: Leveraging technology to improve operational efficiency, risk assessment, and customer reach.

6. Risks

Credit Risk: Potential for loan defaults and non-performing assets (NPAs) impacting asset quality and profitability.

Market Risk: Volatility in equity and debt markets can negatively affect the value of its investment portfolio.

Interest Rate Risk: Fluctuations in interest rates can impact its cost of borrowing and lending margins.

Regulatory Risk: Changes in RBI policies regarding NBFCs (e.g., capital adequacy norms, asset classification) can affect operations and profitability.

Liquidity Risk: Difficulty in raising funds or refinancing existing liabilities at favorable rates.

Competition: Intense competition from banks, other NBFCs, and emerging fintech players.

Economic Slowdown: A general downturn in the economy can reduce credit demand and increase default rates.

7. Management & Ownership

HB Stockholdings Ltd. is part of the HB Group, indicating a promoter-driven ownership structure, which is common in India. The promoter group likely holds a significant stake, influencing strategic direction. The quality of management would depend on their experience, risk management capabilities, and adherence to corporate governance practices, which are crucial for an NBFC operating in a regulated environment.

8. Outlook

HB Stockholdings Ltd. operates within India's dynamic financial sector, presenting both opportunities and challenges. The potential for growth is linked to the broader economic expansion and the continued demand for financial services from various segments. A well-managed investment portfolio, coupled with prudent lending practices, could drive profitability. However, the company faces inherent risks associated with the financial sector, including credit quality deterioration, market volatility impacting its investments, and evolving regulatory landscapes. Its ability to navigate these risks while identifying profitable niches will be key to its future performance.

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HB Stockholdings Key Financials

Market Cap ₹43 Cr.

Stock P/E -3.6

P/B 0.5

Current Price ₹60.5

Book Value ₹ 123.3

Face Value 10

52W High ₹135

Dividend Yield 1.65%

52W Low ₹ 41.5

HB Stockholdings Share Price

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Volume
Price

HB Stockholdings Quarterly Price

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HB Stockholdings Peer Comparison

HB Stockholdings Quarterly Results

#(Fig in Cr.) Sep 2023 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Operating Revenue 13 15 6 10 2 0 0 10 0 1
Other Income 0 0 0 0 0 0 0 0 0 0
Total Income 13 15 6 10 2 0 0 10 0 1
Total Expenditure 1 1 1 1 1 13 7 1 5 5
Operating Profit 12 15 5 9 1 -12 -7 9 -5 -4
Interest Expense 0 0 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 12 14 5 9 1 -13 -7 9 -5 -4
Provision for Tax 1 2 1 3 1 -1 -0 1 -1 -1
Profit After Tax 11 13 4 6 0 -11 -7 7 -5 -4
Adjustments 0 0 0 0 0 0 0 0 0 -0
Profit After Adjustments 11 13 4 6 0 -11 -7 7 -5 -4
Adjusted Earnings Per Share 15 17.8 6.1 9 0.2 -16 -10 10.4 -6.4 -5.2

HB Stockholdings Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Operating Revenue 5 5 15 5 3 2 13 18 3 44 13 11
Other Income 0 0 0 0 0 0 0 0 3 0 1 0
Total Income 5 5 15 5 4 2 13 18 6 44 14 11
Total Expenditure 8 4 3 5 9 9 1 2 7 3 24 18
Operating Profit -3 1 12 0 -5 -7 12 16 -2 42 -9 -7
Interest Expense 0 0 0 0 0 0 0 0 0 0 1 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
Profit Before Tax -4 1 12 -0 -6 -7 12 16 -2 41 -10 -7
Provision for Tax 0 0 1 0 0 0 -0 1 -0 4 2 -1
Profit After Tax -4 1 11 -1 -6 -7 12 15 -2 38 -12 -9
Adjustments 1 3 1 0 0 0 0 0 0 0 0 0
Profit After Adjustments -2 3 12 -1 -6 -7 12 15 -2 38 -12 -9
Adjusted Earnings Per Share -0.9 1.4 4.9 -0.8 -8.1 -10.3 16.5 21.3 -2.8 52.6 -16.8 -11.2

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -70% -10% 45% 10%
Operating Profit CAGR -121% NAN% 0% 0%
PAT CAGR -132% NAN% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -28% 7% 27% 22%
ROE Average -13% 10% 17% 5%
ROCE Average -9% 12% 18% 6%

HB Stockholdings Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 135 138 150 44 38 30 53 69 66 103 90
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 0 0 0 1 1 0 0 0 1 1 0
Current Liability 4 4 3 29 2 2 5 2 1 5 14
Other Liabilities & Provisions 5 4 4 0 0 0 0 -0 -0 1 2
Total Liabilities 144 147 157 74 40 33 58 71 68 110 107
Loans 0 0 0 0 0 0 0 0 0 0 0
Investments 99 100 98 0 0 0 24 9 8 65 62
Fixed Assets 1 1 0 1 1 1 1 1 2 2 1
Other Loans 8 3 3 3 0 0 3 3 3 3 3
Other Non Current Assets 0 0 0 0 0 0 0 0 0 0 0
Current Assets 36 43 54 69 39 32 30 58 55 40 39
Total Assets 144 147 157 74 40 33 58 71 68 110 107

HB Stockholdings Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 8 1 1 4 1 2 0 1 4 1 3
Cash Flow from Operating Activities -6 -0 3 -3 2 -1 5 -12 -3 33 -5
Cash Flow from Investing Activities 0 -0 0 -1 -0 -0 -4 15 -1 -31 -2
Cash Flow from Financing Activities -0 0 0 1 -0 -0 -0 -0 1 -0 12
Net Cash Inflow / Outflow -7 -0 3 -3 1 -2 1 3 -4 2 5
Closing Cash & Cash Equivalent 1 1 4 1 2 0 1 4 1 3 8

HB Stockholdings Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) -0.94 1.45 4.89 -0.77 -8.12 -10.3 16.47 21.28 -2.82 52.59 -16.83
CEPS(Rs) -1.42 0.4 4.48 -0.51 -7.8 -9.99 16.73 21.54 -2.44 53.1 -16.3
DPS(Rs) 0 0 0 0 0 0 0 1 1 1.5 1
Book NAV/Share(Rs) 56.35 57.8 62.68 60.51 51.97 41.62 73.71 95.59 91.7 143.7 125.34
Net Profit Margin -78.02 15.89 70.62 -11.75 -166.39 -374.15 89.07 85.75 -67.56 84.61 -90.19
Operating Margin -72.9 18.2 79.75 -1.84 -158.59 -371.68 89.06 88.88 -69.58 93.02 -72.22
PBT Margin -76.89 18.2 79.75 -2.78 -160.2 -373.86 88.84 88.8 -70.93 92.8 -76.73
ROA(%) -2.47 0.58 6.97 -0.48 -10.18 -20.26 25.89 23.53 -2.9 42.22 -11.11
ROE(%) -2.69 0.62 7.38 -0.57 -14.43 -22 28.56 25.13 -3.01 44.68 -12.51
ROCE(%) -2.5 0.7 8.3 -0.09 -13.34 -21.18 27.94 25.75 -3.06 48.33 -9.27
Price/Earnings(x) 0 5.15 3.34 0 0 0 0.98 2.28 0 1.54 0
Price/Book(x) 0.19 0.13 0.26 0.55 0.13 0.17 0.22 0.51 0.5 0.56 0.58
Dividend Yield(%) 0 0 0 0 0 0 0 2.06 2.17 1.85 1.37
EV/Net Sales(x) 5.12 3.15 2.29 5.06 0.94 2.43 0.79 1.72 11.07 1.26 4.33
EV/Core EBITDA(x) -7.62 15.55 2.85 233.95 -0.62 -0.67 0.88 1.91 -18.31 1.35 -6.25
Interest Earned Growth(%) -65.26 13.07 184.19 -68.71 -25.66 -43.6 571.81 34.22 -83.18 1388.94 -69.98
Net Profit Growth -141.19 123.02 1163.27 -105.2 -953.02 -26.83 259.93 29.21 -113.26 1964.73 -132.01
EPS Growth(%) -140.34 254.17 237.15 -115.78 -953.02 -26.83 259.93 29.22 -113.25 1964.75 -132.01
Interest Coverage(x) % -18.3 0 0 -1.95 -98.65 -170.62 401.74 1201.55 -51.57 434.38 -16

HB Stockholdings Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 53.22 53.22 53.22 53.22 53.22 53.22 53.22 53.22 53.22 53.22
FII 0.01 0 0 0 0 0 0 0 0 0
DII 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Public 46.77 46.78 46.78 46.78 46.78 46.78 46.78 46.78 46.78 46.78
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

HB Stockholdings News

HB Stockholdings Pros & Cons

Pros

  • Stock is trading at 0.5 times its book value
  • Company has reduced debt.
  • Company is almost debt free.

Cons

  • Company has a low return on equity of 10% over the last 3 years.
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