Mehabe score: 4 G Factor: 5 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 7.
Description
Indiabulls Housing Finance is engaged in business of a Housing Finance Institution without accepting public deposits and its regulated by National Housing Bank.(Source : 201903 Annual Report Page No: 65)Site:IBULHSGFINMain Symbol:IBULHSGFIN
Stock trades at 263.0, above its 50dma 244.03. It also trades above its 200dma 220.25. The stock remains bullish on techicals
The 52 week high is at 313.70 and the 52week low is at 127.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.75 times its book value
– has been maintaining a healthy dividend payout of 44.74%
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.49% over past five years.
Competition
– The industry trades at a mean P/E of 29.2x. AAVAS Financiers trades at the industry’s max P/E of 81.12x. IBULHSGFIN trades at a P/E of 10.1x
– Industry’s mean G-Factor is 4.7 while the mean Piotski score is 8.0. IBULHSGFIN has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is -1.4%. The max 1- month return was given by AAVAS Financiers: a return of 22.17 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2372.0 cr compared to Rs 2950.0 cr for period ended Mar 2020, a fall of 19.6%
Operating Profits reported at Rs 448.0 cr for period ended Mar 2021 vis-vis 706.0 for period ended Mar 2020 .
Operating Margins contracted -504.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 5.97 compared to Rs 7.12 for previous quarter ended Dec 2020 and Rs 3.21 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 9927.0 cr for period ended Mar 2021 vis-vis sales of Rs 13216.0 cr for the period ended Mar 2020, a fall of 33.1%. The 3 year sales cagr stood at -12.8%.
Operating margins shrank to 1556.0% for period ended Mar 2021 vis-vis 2664.0% for period ended Mar 2020, contraction of 110800.0 bps.
Net Profit reported at Rs 1202.0 cr for period ended Mar 2021 vis-vis sales of Rs 2200.0 cr for the period ended Mar 2020, falling 83.0%.
Company reported a poor Net Profit CAGR of -32.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 8.0% compared to 16.0% over the last 3 Years. – The stock has given a return of 14% on a 1 Year basis vis-vis a return of -39% over the last 3 Years. – The compounded sales growth on a TTM bassis is -25% vis-vis a compounded sales growth of -13% over the last 3 Years. – The compounded profit growth on a TTM basis is -45% vis-vis a compounded profit growth of -32% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 33.61% vis-vis 32.16% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 28.27% vis-vis 30.37% for Dec 2020
Conclusion
– Stock is trading at 0.75 times its book value
– has been maintaining a healthy dividend payout of 44.74% – has low interest coverage ratio.
-The company has delivered a poor sales growth of 1.49% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 244.03 and is trading at 263.0, thus bullish price action wise.
