ICICI Securities's research report on India Shelter Finance Corporation
India Shelter reported >17% RoE in Q1FY26, sustaining eight straight quarters of steady performance; RoA climbed from 5.5% to 6% despite leverage (asset/equity) worsening from 2.6x to 2.9x in Q1FY26. Robust technology with one of the lowest TAT in the industry and end-to-end digital loan processing without any physical movement of loan files are key enablers of its industry-leading growth – AUM growth was at its highest at 34% YoY/6% QoQ. We expect a higher proportion of LAP portfolio (40% of AUM), resulting in better spreads than peers, ~40% fixed-rate loans (dual advantage of low BT-out and better yields during falling interest rate cycle) to help India Shelter in sustaining better profitability than peers.
Outlook
Retain BUY with a revised TP of INR 1,125 (vs. INR 1,060), valuing it at 3.5x (vs. 3.3x) Sep’26E BVPS.
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