Indiabulls Housing Finance Limited, a part of the Indiabulls Group, is one of the largest private housing finance companies in India, governed by the National Housing Bank (NHB). Its offerings comprise a comprehensive range of home loan products.
Indiabulls Housing Finance Market Capitalisation
The market cap of the company, as of March 2018, is more than Rs.51,000 crore.
Company’s Wealth and Recent PerformanceQ1 FY 2018-19
- For the quarter ended on June 30, 2018, the company’s balance sheet registered a growth of 29.7% y-o-y. The figure at the end of the quarter was disclosed to be Rs.1,382 billion.
- A similar growth was also seen in the total revenues of the company. For the June quarter of the FY 2018-19, Indiabulls Housing Finance Limited reported its consolidated income to be at Rs.40.71 billion, in comparison to Rs.32.88 billion reported for the previous fiscal year. On a y-o-y basis, it marks a growth of 23.8%.
- The company’s net interest income also grew by 22.1% to Rs.16.90 billion. Similarly, the profit before tax was stated to be at Rs.14.02 billion while the profit after tax was Rs.10.55 billion. With respect to the same quarter of the previous fiscal year, this translates into a growth of 32.1% and 30.3% respectively.
- Considering the asset quality of the housing finance company, its gross non-performing assets ratio (NPA) was observed to be 0.78% while its Net NPA was 0.59%.
- For the year ended on March 31, 2018, the company’s balance sheet was worth Rs.1,319.03 billion. With respect to the previous financial year, this marked a growth of 27.2%.
- Considering the consolidated total revenues, Indiabulls Housing Finance Limited reported its income for the year to be at Rs.146.40 billion - a growth of 25.1% over the previous financial year.
- Its consolidated net interest income for the year recorded a growth of 21.3% y-o-y to Rs.57.85 billion, as of March 31, 2018.
- The company’s profitability for the year witnessed a dramatic growth. Its profit after tax was disclosed to be Rs.38.47 billion, in comparison to a PAT of Rs.29.06 billion as of March 31, 2017. This translates into a growth of 32.4% y-o-y. Consequently, the company’s earnings per share also grew from Rs.68.80 to Rs.90.51.
- Considering the asset quality for the year ended on March 31, 2018, its Gross NPA was observed to be 0.77% while Net NPA was 0.34%.
- The company’s balance sheet registered a 20% year-on-year growth and the amount at the end of December 2017 is Rs.1,228 billion. In terms of revenues, this translates into a 25.9% growth over the same period last year.
- Similarly, company’s profit after tax (PAT) has also increased by 36.4% Y-o-Y, to Rs.28.17 billion. Its earnings per share (TTM) is Rs.85.75.
- The asset quality of the company has also improved remarkably over the same period last year. Gross NPAs (non-performing assets) have reduced to 0.77% from 0.85%, whereas Net NPAs have reduced to 0.31% from 0.36%. This improvement in NPAs was driven by an increase in the share of low-risk home loans.
- One of the factors driving this steady growth is the rapid expansion of affordable housing segment. In conjunction with the Government’s ‘Pradhan Mantri Awas Yojana - Housing for All’ initiative, the affordable housing portfolio of Indiabulls Housing Finance grew remarkably by 24% Y-o-Y. This has been possible due to the improved affordability of borrowers caused by the reduction in interest rates and capital subsidy.
Indiabulls Housing Finance Limited Stock Trends in 2018
- The opening price of the Indiabulls Housing Finance stock on January 1, 2018, was Rs.1,196 on NSE. The stock price didn’t undergo any drastic change on either NSE or BSE for most of the month. However, after the Q3 FY18 results were announced, in which the companies reported a surge in profit, the share price moved up to reach a new high at Rs.1,440 on NSE. As a result, the closing price at the end of the month on NSE was Rs.1,390.
- In February, a dividend of 700% was announced. The share price at the start of the month on NSE was Rs.1,389. By late-February, the stock had lost more than Rs.100 in its value, driven by weak global cues and turbulence in international markets. As a result, the closing price of the Indiabulls Housing Finance share at the end of the month on NSE was Rs.1,254.
- On March 1, the opening stock price of Indiabulls Housing Finance Limited was observed to be Rs.1,255 on the NSE. The scrip lost marginally over the course of the month, although the shares managed to remain buoyant at levels above Rs.1,200. In the final week of the month, the scrip commenced a bull run which led to the shares cross the psychologically important mark of Rs.1,300.
- Through most of April, the Indiabulls Housing Finance shares retained their momentum at levels above Rs.1,320. In the final week, however, the scrip took a sharp dive and in a span of two weeks, the shares lost close to 15%. By the second half of May, the shares were back to their previous levels at Rs.1,180. In the same month, the company announced an interim dividend of 500%.
- In June, the prices recovered slightly to touch the Rs.1,200 mark again, although they failed to find a stead heading at those levels. Consequently, the price continued to fall steadily, although the losses were marginal. It wasn’t until late July that the prices rose once again and this time, the shares moved up handsomely to revisit their previous levels at Rs.1,300.
- By early August, the shares had crossed the Rs.1,330 mark. In the same month, the company announced an interim dividend of 500%. However, in line with its previous trends, the shares lost those gains in the final week of the month. Through most of September, the shares were seen trading hands at levels above Rs.1,200.
Indiabulls Housing Finance Limited Stock Trends in 2016 and 2017
- The stock price at the start of 2016 was close to Rs.730 on NSE and BSE. An interim dividend of 450% was announced in early February. However, that failed to keep the stock price up and by the end of February 2016, the share price of Indiabulls Housing Finance had gown down below Rs.600 on NSE and BSE.
- However, by early March 2016, the stock price recovered again and crossed Rs.600. Things stayed this way through most of March and April. In the month of May, the share price crossed Rs.700 on NSE and BSE, driven by company’s performance and regular updates. Except for a brief spell in late June and early July, the share price remained above Rs.700.
- By the end of July, the share price of Indiabulls Housing Finance Limited was steadily moving closer to Rs.800, led by company’s strong performance and the announcement of interim dividend in early August. These events, along with the regular updates provided by the company, boosted investors’ confidence and as a result, the share price managed to find a steady bearing at above Rs.800 for most of August, September, and October 2016.
- In late October, the stocks were being traded at above Rs.850. However, post demonetisation in November 2016, the stock price fell dramatically and once again, the shares found themselves trading at less than Rs.700. Nonetheless, by the end of November, the stock price recovered and the same on NSE and BSE at the end of the month was close to Rs.765.
- However, the stock price of Indiabulls Housing Finance failed to sustain this recovery. By the end of December 2016, the share price had plummeted to Rs.640 on NSE.
- In January 2017, the IBHFL share price recovered once again and by the middle of the month, the stocks had crossed Rs.750. The price rose steadily thereafter, driven by a decent performance in Q3 FY17 and the announcement of interim dividend in early February.
- The inclusion of Indiabulls Housing Finance in the NIFTY 50 index also gave the stock price a new bearing. In fact, by the end of March, the stocks were trading at close to Rs.990 on NSE and BSE. It remained this way through most of April 2017. By the end of the month, the shares were changing hands at above Rs.1,000. The price rose steadily through May and June, and it even managed to cross Rs.1,100 in this period.
- Shortly after the Q1 FY18 results were announced in July, the share price of IBHFL crossed Rs.1,200 on NSE and BSE. By early September, the stock price achieved another milestone - this time, it crossed Rs.1,300. However, it failed to stay at that limit for long and by the end of September 2017, the price had gone down to enter the Rs.1,200 territory.
- In October, the share price once again touched Rs.1,300 on NSE and BSE, and this time, it managed to go beyond Rs.1350. However, owing to weak global cues, the price dropped soon thereafter and through the months of November and December, there wasn’t any significant change in the price. The closing price at the end of the year on NSE and BSE was roughly Rs.1,196.
Should you invest in Indiabulls Housing Finance Limited?
- In terms of performance, Indiabulls Housing Finance Limited has done exceptionally well over the years. Its track record is highly consistent and the balance sheet, along with the revenue, has increased year-by-year. Furthermore, its count of NPAs is also among the lowest in the industry. Needless to mention, the company is fundamentally strong.
- It is expected that the urban housing requirement in India will rise to 45 million units by 2022, driven by rapid urbanisation and rising income levels. When we consider this factor with the government’s initiatives in the affordable housing segment, namely the ‘Pradhan Mantri Awas Yojana’, we can conclude that housing finance market in the country is likely to increase by twofold in the next five years.
- Many reputed firms like Merrill Lynch and ICRA expect housing finance companies (HFCs) to outperform banks in the housing credit segment. While both the parties are likely to grow, HFCs are likely to be the ones to benefit most from it. In India, HDFC Limited is the largest HFC, followed by Indiabulls Housing Finance Limited in terms of market capitalisation and turnover.
- From a long-term perspective, investing in Indiabulls Housing stocks may appear to be a feasible idea. However, the entry point may not be that favourable. Alternately, you can also look at mutual funds with holdings in this company. It is advisable to perform your own research before investing.
Indiabulls Housing Finance Limited is a housing finance company and is a part of the Indiabulls Group. Regulated by the National Housing Bank, Indiabulls Housing Finance specialises in providing home loan solutions and other related products like loans against property, home extension loans, plot loans, et cetera. Since its inception, it has served more than 9 lakh customers and helped them achieve their dreams of owning a house. Its vision is to make housing finance more affordable for the people and ensure that their home buying experience is a hassle-free one. IBHFL has more than 200 offices across India, along with two representative offices in London and Dubai to serve NRIs/PIO.
History of the Company
Indiabulls Housing Finance Limited is a part of the Indiabulls Group and forms one of the three pillars of operations along with real estate and wealth management. The company was incorporated in May 2005, as a subsidiary of Indiabulls Financial Service Limited. In 2013, the two entities were reverse merged and since then, it has grown to become a leading name among the housing finance companies.
Mr. Sameer Gehlaut - Chairman and Founder
Mr. Gehlaut is the founder and the chairman of the Indiabulls Group and serves as the Executive Chairman of the Housing Finance Limited. He has served in various capacities with the Indiabulls Group, including his service as the director of Indiabulls Real Estate Limited and Indiabulls Ventures Limited. Having been in the real estate and finance sector for more than 15 years, he has leveraged his knowledge and experience to make Indiabulls a pioneer in the housing finance sector. He holds a bachelor's degree in Mechanical Engineering which he obtained from the Indian Institute of Technology, Delhi.
Mr. Gagan Banga - Vice Chairman and Managing Director
Mr. Banga has been in the industry for more than 15 years and has worked primarily with non-banking financial companies and housing finance companies. He has been a part of the Indiabulls Group for more than a decade and has been a key member in promoting its financial segment and also, helping the company grow to become one of the largest HFCs in the country.
Indiabulls Housing Finance Limited Stock Listings in NSE, BSE and Indices
The stocks of Indiabulls Housing Finance Limited can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
BSE - 535789
NSE - IBULHSGFIN
ISIN - INE148I01020
Sector - Finance - Housing
As for the stock market indices, Indiabulls Housing Finance is a part of NIFTY 50 - one of the two benchmark indices in India. Furthermore, it also forms a part of other market indices such as S&P BSE 100, S&P BSE 200, S&P BSE 500, S&P BSE AllCap, NIFTY 100, NIFTY 200, and many more.
Indiabulls Housing Finance Limited
Indiabulls Finance Centre, Tower 01
4th Floor, Senapati Bapat Marg,
Elphinstone Road, Mumbai - West
Maharashtra - 400013
Contact number: 022-61891000
Indiabulls House, 448-451
Udyog Vihar, Phase -V, Gurugram
Haryana - 122001
Contact number: 0124-6681199
The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.