After underperforming the market for five years in a row from CY18 to CY22, shares of Indiabulls Housing Finance rebounded this year with a rally of nearly 9% to ₹167.80. The stock picked up steam after hitting a new 52-week low of ₹91.8 apiece in March 2023, witnessing a strong surge in value to hit a one year high of ₹173.80.
At current levels, the stock is up by 83% from its 52-week low. Impressively, the stock finished the last four months in gains, and in the current month so far, it has rallied nearly 18%.
The company on Monday posted a 3.33% improvement in consolidated net profit to ₹294 crore for the June quarter. The company had earned a net profit of ₹286.64 crore in the corresponding quarter of last year. Seen sequentially, the net profit improved by nearly 13%.
The company's interest income during Q1FY24 declined to ₹1,818.03 crore from ₹1,980.13 in Q1FY23. Its revenue from operations fell by 8.5% YoY to ₹1,900.38 crore. During the quarter, the company's employee benefits expenses rose by 132.46% YoY to ₹162 crore, impacting its bottom-line margins.
With regard to asset quality, the company's gross non-performing assets came in at 3.67%, while the net NPAs stand at 2.14%.
On July 28, the board of directors approved raising up to ₹35,000 crore via the issue of debt securities. The NBFC also approved a final dividend of ₹1.25 per equity share for the financial year 2022–23.
LIC is presently the largest bond holder of the company, holding ₹9,550 crore of the bonds outstanding. LIC is also the largest institutional shareholder of the company with 8.44% holding as on June 30, 2023, according to company.
"The company is emerging from a phase of consolidation over the last few years. As the company gets back on the path of growth, the board has resumed payment of dividends to shareholders. The company is also very well capitalised, with capital adequacy in excess of 23% on a standalone basis and 31% on a consolidated basis as of the end of March 2023," the company said in a regulatory filing.
"Over the last few years, the company has been on a path of continuing institutionalization. Earlier this year, in February 2023, the company was de-promoterized. The company is today a board-run, professionally managed, and diversely held financial institution," it said.
On July 27, Societe Generale acquired a 0.59% stake or 27.84 lakh equity shares in the company at an average price of ₹127.96 per share, as per media reports.
02 analysts polled by MintGenie on average have a 'hold' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.