IndiaBulls Housing finance

Industry Profile : Housing is a primary necessity of humans and is a basic indicator of growth and social well-being. Development in housing sector is not just important to economic growth but is also one of the tools for economic development considering the accelerator impact it has on various industries including construction and infrastructure, Cement sector including labour market; it generates demand for supporting industries and leads to creation of job opportunities. Development of housing in a country is a sign of economic welfare. That is the reason why Govt is also supporting to the housing sector as it gives house to some one but also infuse Capital and other things in economy.

For any emerging economy, development of the housing sector has its own challenges. The biggest of these challenges is access to finance. While investment in real estate is an easy candidate for borrowing, real estate lending is more opportunity-based. In India, access to finance for housing needs is largely concentric and focused at higher income groups, as that is the sector where there are formal evidences of income such as salary slips or income-tax returns.

Company Profile : Based in Delhi, the company is second largest private Housing Finance company in India. the company is having product range from loan against property, Home loans, Loan for home improvement. the company having more than 200 branches and operating in more than 100 cities. The company is subsidiary of Indiabulls financial service. the market is growing with fast pace and the company is among leader with it. The company is mainly providing loans to govt servants and midsize home loans.

Shareholding Pattern : 23.82% is held by different Promoter entity. 2.51% held by Mutual Funds. 0.04% held by Financial institutions. LIC hold 1.14%. 63.24% held by different foreign investors. remaining is held by Public.

Financials and Ratios :

 2012-132013-142014-152015-16
Loan Book26,316.9929,434.3338,995.4052,306.97
ROE24.8627.6130.4721.84
ROA3.183.503.583.05
Efficiency 10.7110.8110.9010.70
Book Value158.04163.67182.59249.32
EPS38.1245.8355.5257.48
Dividend Per Share20292654
Net NPA to Loan Book0000

Future Prospectus : Company is largely held by Foreign investors. there are many big names in it like Vanguard, Merrill-Lynch, Morgan Stanly, Prudential Assurance company, Nomura India hold it in their various funds. All due to this Corporate Governance is not big issue. Housing sector in India is growing with fast pace and the company is expecting 30% growth in loan book. as investor what i am expecting is return. The company is one of the top dividend paying and as it is part of Nifty with another housing finance company, HDFC, but still the ratios are telling that ROE and ROA are looking better.

  • 0

    Overall Score

  • Reader Rating: 0 Votes

Share

About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter