[5] The Real Power is in the Movement, not just the Rating
Would you trust a company that dropped from AA+ to A?
Or a small-cap that steadily rose from BBB- to A-?
Ratings tell you where the company is.
But rating movement shows you where it's going
Posted On:26 Jun 2025
If you’re a serious investor, you can’t afford to ignore this goldmine
Use credit rating reports to:
✅ Deepen your research
✅ Verify your thesis
✅ Discover risks early
✅ Spot silent turnarounds
It’s free. It’s verified. It’s underused
Make it your edge
Posted On:26 Jun 2025
8. Common Reader Queries:
🟡Why is debt info different in annual vs credit rating reports?
Because credit reports often include off-balance sheet liabilities too
🟡Should I fully rely on credit ratings?
No — but it’s a powerful addition to your toolkit
🟡Are these reports
Posted On:26 Jun 2025
6️⃣ How does it compare with other NBFCs like Bajaj Finance and Chola?
→ HDB is cheaper in terms of valuation (its price-to-book ratio is lower)
But its profitability and asset quality are not as strong as Bajaj Finance, which has better returns and cleaner books
Posted On:25 Jun 2025
So it’s a trade-off: value vs performance
Posted On:25 Jun 2025
7️⃣IPO details you should know:
• Issue size: ₹12,500 Cr
• Price band: ₹700 to ₹740 per share
• Lot size: 20 shares (minimum ₹14,800 investment)
• Issue period: June 25 - June 27
• Listing date: July 2
This is one of the biggest NBFC IPOs we’ve seen in recent years
Posted On:25 Jun 2025
5️⃣Let’s talk about the risks
HDB has 2.26% gross NPAs that’s its bad loan ratio
It also lends a lot in the unsecured space — where defaults are more likely during tough times
If there's a slowdown or job loss cycle, those unsecured loans could turn risky fast
Posted On:25 Jun 2025
8️⃣So… should you apply for this IPO?
You may consider it if you want:
• Exposure to rural credit growth
• A solid brand-backed NBFC
• Lower valuation than market leaders
But be cautious about asset quality, and HDFC’s future involvement post stake cut
Posted On:25 Jun 2025
→ It also enjoys a AAA credit rating and borrows money at just 7.9% interest — thanks to HDFC Bank’s brand power
That’s a big advantage