Here’s What Indiabulls Housing Finance’s Borrowing Plan Reveals
Going by its borrowing plan, Indiabulls Housing Finance Ltd. expects loan growth to rebound this financial year as it recovers from the credit crunch triggered by the defaults by ‘AAA’-rated IL&FS group.
The housing finance company plans to borrow Rs 26,000 crore in 2019-20, according to its exchange filings. Total loan book stands at Rs 1.24 lakh crore and it has Rs 27,152 crore cash in hand as of March 31. Also, about a seventh of loans mature every year. According to BloombergQuint’s calculations, it provides enough room for its loans to grow at more than 20 percent. That compares with a 16.2 percent increase in the nine months ended December and the annualised growth rate of 26 percent in the last seven years.
Shares of Indiabulls Housing Finance have jumped 45 percent since its February low compared with a 7 percent rise in Nifty 50 index. About 93 percent of the 15 analysts tracking the stock have a ‘Buy’ or ‘Hold’, according to Bloomberg data. The 12-month target price implies a return potential of 7.9 percent.
The housing finance company also forecast at net profit growth of 17 percent to 19 percent in FY20. Here’s a snapshot of key financial metrics of the mortgage lender:
In the quarter ended March, it raised Rs 17,300 crores was raised. Net leverage has been consistently falling over the past four quarters as cash on books rose.