Indiabulls Housing Finance stock drops 5% on muted Q1 performance

Indiabulls Housing Finance Q1 profit grew 3.3% YoY to Rs 296.2 crore

Shares of Indiabulls housing Finance dropped nearly 5 percent in early trade on August 16 post muted Q1 results. At 10:24 am, the Indiabulls housing Finance stock was trading 3.33 percent lower at Rs 153.35 on NSE.

Indiabulls Housing Finance on August 14 reported a consolidated profit at Rs 296.2 crore for first quarter of FY24, rising 3.3 percent over corresponding period of previous fiscal. However, net interest income fell by 5.8 percent to Rs 546.5 crore during the same period.

In another development, the company last month said it will be relinquishing the 'Indiabulls' brand. The company said that with the completion of its de-promoterisation, its former promoter Sameer Gehlaut, who had established the Indiabulls brand, has been classified as a public shareholder from February 2023 and was no longer associated with the company in any other way. "Therefore, the continuance of the brand 'Indiabulls' by the company has become untenable and it will thus be relinquishing the 'Indiabulls' brand," IHF said in an exchange filing.

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IHF said its former promoter held stakes in or is/was engaged in businesses such as real estate, lending, pharma, broking, on-line sales, among others, under the 'Indiabulls' brand.

Brokerage Views

Brokerage firm Morgan Stanley has given an ‘underweight’ rating to the Indiabulls Housing Finance stock with a target price of Rs 103 per share. The brokerage firm further added that, “Provision operating profit (PPoP) reported a miss of 21 percent on lower total income and higher operating costs. Return on Equity (RoE) will likely take longer to recover.”

Stock Performance

Indiabulls Housing Finance stock has given a return of 33.08 percent over the last six months. Consequently, the stock has outperformed the Nifty50 benchmark index by a considerable margin as the benchmark index has given a return of 7.76 percent over the same duration.

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