Motilal Oswal is bullish on Indiabulls Housing Finance has recommended buy rating on the stock with a target price of Rs 1650 in its research report dated April 20, 2018.
Motilal Oswal's research report on Indiabulls Housing Finance
Indiabulls Housing Finance's (IHFL) core operating performance was robust. AUM grew strongly by 34% YoY to INR1.23t v/s our expectation of INR1.17t. A decline in reported spreads (-13bp YoY), an increase in leverage, and moderation in liquid money-related income led to 22% NII growth. Tax rate was at 18% for the quarter.Disbursements for the quarter were up 30% YoY to INR195b, driven by 50%+ YoY growth in core home loans. This drove 34% AUM growth. Management cited strong traction in affordable housing finance.
Outlook
Asset quality trend is likely to remain stable. We increase our FY19/20E EPS estimates by 3-4% to factor in higher growth. Maintain Buy with a TP of INR1,650 (4.0x FY20E book).For all recommendations report, click here
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