Indiabulls housing finance share analysis

Indiabulls housing finance was once the traders favourite share considering that it has given handsome returns in the past and also give healthy dividend.

What has changed for Indiabulls housing finance??

In recent past due to fall of IL&FS all housing finance has gone into disaster and they are still facing the challenge before being getting out of woods. Thereafter there are multiple rumors due to issues rated to corporate governance and COVID-19 due to which stock has fallen from highs of Rs. 1500/- per share to only Rs. 80 odd levels, now this stock has recovered some losses by getting investment from Morgan Stanley.

What next for stock

Company is paying it's NCD at time and posted Q4 results on a good note and further in 2 days they have got investments likes of SBI and Oaktree and other investors with total investment of 4200 crores.

Out of 4200 Crores 2200 Crores it has obtained from Oaktree and Rs. 2000 crores from 7 Public sector banks through NCD's out of which SBI has subscribed for  Rs. 250 Crores, Indian Bank for Rs. 325 crores, Bank of Baroda Rs. 730 crores , United bank of India- Rs. 200 Crores, other investments are from PNB and Central bank of India.

So company is getting funding as required for meeting future requirements and this will be good for company for its near term future.

Now just look at chart of Indiabulls Housing finance :-

Just look at the chart you will see that this stock has outperformed the market until year 2018 where housing finance sector was booming and after IL&FS whole housing finance sector has gone into disaster even companies like DHFL are facing insolvency proceedings. 

But unlike DHFL this stock has strength and company is good hands and even if you see its financial results you will find out that employee cost has been keep on reducing which is as high as Rs. 156 crores in March 2019 quarter results to Rs. 110 crores in March 2020 quarter results. 

Also company has paid Rs. 40.00 per share as dividend in year 2018-19 and Rs. 31.00 per share in FY 2019-20 which indicates company is in good hands and always wants to share profit the shareholders.