Edelweiss has a target price of Rs 1,393 on the shares of Indiabulls Housing Finance, which were trading at Rs 1,350 on NSE this morning. (Image: Reuters)
Global research and brokerage firms Edelweiss Securities and Credit Suisse have maintained a buy and outperform rating on the shares of Indiabulls Housing Finance, after the company reported a 24% increase in net profit to Rs 851 crore in the September quarter. Edelweiss has a target price of Rs 1,393 on the shares, which were trading at Rs 1,350 on NSE this morning. Credit Suisse has an outperform rating on the shares with a target price of Rs 1,600, implying an upside of more than 19% from the current market prices.
The shares have more than doubled in the year so far. In the last three months, the shares are trading up by more than 17.6%. In contrast the Sensex has returned 1.5% in the last three month period. Indiabulls Housing Finance’s standalone NII for the quarter came in at Rs. 1231 crore, registering 39% yoy rise.
Edelweiss expects the company to deliver a strong loan growth of more than 30%. According to Edelweiss report, Indiabulls is expected to deliver consistent strong operating performance. Credit Suisse said that in the current quarter, the company had a lower other income components, leading to softer overall profit growth. Credit Suisse too expects the company to have strong growth in numbers going forward.
Basant Maheshwari from Basant Maheshwari Wealth Advisers LLP is betting big on housing finance sector. “My Diwali idea would be housing finance” he told ET Now. In an interview to CNBC TV18, Mahesh Nandurkar, India Strategist CLSA said last week, “We have been bullish on housing as a theme for quite some time now. Property affordability in the market is the next growth driver for housing.” According to him, the housing sector had been under pressure due to demonetisation and GST. “ Prior to last Diwali, we did have a good phase in the sector. But, post that we had demonetisation and then GS and the impact of RERA, which has pulled us back a little bit,” Mahesh Nandurkar told CNBC TV18.
