Indiabulls Housing Finance
Ibulhsgfin has been moving up steadily on the back of some positive newsflow
- Kotak Securities has recently bought 20L shares
- CRISIL has upgraded outlook to Stable from Negative. It affirmed the company's long-term credit rating of "AA" and short term of "A1+"
- It sold its MF business to Groww for 175cr and raised another 1091cr via FCCB
- It is now following a new asset-light model and books have already been cleaned
- Derisking of developer loan book through refinancing and securitization of loans has been a great success Loan book stands at 70,282cr while its capital adequacy stands at 30.5%
- Net interest income has been rising consistently from past few quarters
- Co aims to increase its customer base by 50% by March'23 and double it by March'25
- The new co-lending model will help achieve 2000cr of monthly disbursals. Co has recently tied up with HDFC to further strengthen it new co-lending model
- The cost of funds has now gone below 8.5% and the spread on the book has expanded to 2.6%
- In FY21 the co has already raised 28000cr through equity, bank lines, bonds, and loan sell down which provides liquidity for growth
- Most of the asset quality pain is already a thing of the past and should be stable going ahead
Big Upgrades possible by Brokerage houses in the coming months.
Ibulhsgfin looks highly undervalued and could well become the biggest gainer in FNO space.Verdict
This is a high-risk high-return stock and you should buy it only if you have a good risk appetite. Closing above 240 will give it a new lease of life.
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