Buy Indiabulls Financial; target Rs 207: Firstcall Research

Firstcall Research is bullish on Indiabulls Financial Services and has recommended buy rating on the stock with a target price of Rs 207 in its August 31, 2012 research report.

“Indiabulls Financial Services Ltd, one of India's leading non-banking financial companies (NBFCs) is leading provider of lending and other financial products including home loans, loans against property, commercial vehicle loans, and commercial credit to prime corporates. Indiabulls Housing Finance Ltd, a SARFAESI notified Housing Finance Company is a wholly owned subsidiary of Indiabulls Financial Services Ltd; provides competitively priced home loans to both self employed & salaried segment clients. Indiabulls Financial Services has a wide network of 180 branches spread over 100 cities across India. Indiabulls Housing Finance has one of the fastest Home Loan delivery systems in India. Easy & convenient online access of Indiabulls’ Home Loan account saves time, efforts & money wasted in visiting offices of home loan providers for every single query or requirement. All the security measures for online account access are taken care of at Indiabulls Housing Finance.”

“The Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services in India, reported its financial results for the quarter ended 30th June, 2012. The first quarter witness a healthy increase in overall sales as well as profitability.  The company’s net profit jumps to Rs.2651.24 million against Rs.2195.21 million in the corresponding quarter ending of previous year, an increase of 20.77%. Revenue for the quarter rose 27.57% to Rs.10395.33 million from Rs.8148.85 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.8.50 a share during the quarter, registering 20.46% increase over previous year period.”

“Profit before interest, depreciation and tax is Rs.9282.04 millions as against Rs.6955.19 millions in the corresponding period of the previous year. During the quarter the Total expenditure decreased by 11 per cent due to decreased the other expenditure. Total expenditure in Q1 FY13 was at Rs.1304.77 million as against Rs.1468.37 million in Q1 FY12. Other expenditure is at Rs.626.44 millions as against Rs.906.26 millions in the corresponding period of the previous year. Employee Benefit Expenses were at Rs.558.85 million and Operating Expenses are Rs.97.03 million in Q1 FY13.”

“The first quarter witness a healthy increase in overall sales as well as profitability on account of powerful combination of exciting products, an enhanced store network and robust infrastructural Support system. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend buy in this particular scrip with a target price of Rs.207.00 for Medium to Long term investment,” says Firstcall Research report.

FIIs holding more than 30% in Indian cos

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