Buy India Shelter Finance Corporation; target of Rs 850: ICICI Securities

Buy

ICICI Securities research report on India Shelter Finance Corporation

India Shelter, during its maiden Analyst Day, shared Vision 2030 – AUM of INR 300bn by FY30, implying a >25% CAGR with RoE of >17%. Superior execution of business strategies (~40% AUM CAGR and >50% PAT CAGR between FY20– 24) – since IPO, management has been able to deliver as per guidance despite a challenging operating environment in terms of MFI stress, tight liquidity etc. – is poised to continue going ahead. End-to-end digital processes (lower TAT, better customer service), 40–45 branch additions each year, ticket size growing 7–8% and penetration in existing geographies (already present in 15 states, accounting for >90% of India’s mortgage market) shall driver AUM growth in coming years.

Outlook

Retain BUY; TP of INR 850 unchanged, valuing the company at 3.2x on Sep’25E BVPS.

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