1
Please refer to important disclosures at the end of this report
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Indiabulls Housing Finance Ltd. (IBHFL) is the 2nd largest private housing finance
company in India, regulated by the National Housing Bank (NHB). The mortgage
markets are in hyper competitive mode which is leading to moderation in retail
loan segment. IBHFL will be a key beneficiary of the rise in demand for
mortgages as it leverages an improved funding profile, network expansion and
lower market share. Despite this, with softening interest rates and improving
home affordability, this segment is expected to grow over the long term. IBHFL
expects to have an asset size of `2lakh crore by 2020 driven by affordable
homes programme. Under the programme, both income levels and home loan
amount eligible for subsidy under the Pradhan Mantri Awas Yojana- Housing for
All (PMAY) have been increased. The company saw its cost of funds reduce fall
to 7.83% at the end of March 31, 2017 from 8.39% in the corresponding
quarter last year. It is looking at 30% growth in loan book this year, with an
overall borrowing of `50,000crore. Asset quality remained stable with net non-
performing loans at 0.35%. The company has made provision coverage ratio
148% on gross NPA. The Stock is providing a good dividend yield of 3.88% and
has been maintaining a healthy dividend payout of 63.28%. The company has
reported a healthy consistent profit growth of 23.2% CAGR and also reported
good return on equity (ROE) of 29.3% for the last 3 years. Hence Buy.
BUY
CMP `1,083
52 Week High / Low
1135/616
Avg. Daily Volume
3,66,769
Housing Finance
Market Cap (` cr)
45,949
2
BSE Sensex
30,248
Nifty
9,407
Face Value (`)
Reuters Code
INBF.BO
1.3
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Indiabulls Housing Finance
Others | Housing Finance
May 11, 2017
2
Indiabulls Housing Finance | Housing Finance
May 11, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Indiabulls Housing Finance
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)