21 July 2015

1QFY16 Results Update | Sector: Financials

Indiabulls Housing Finance

BSE SENSEX
28,182
Bloomberg
Equity Shares (m)

S&P CNX
8,529
IHFL IN
355.6

CMP: INR665

TP: INR790 (+19%)

Buy

Business momentum remains healthy; spreads and asset quality stable

Indiabulls Housing Finances (IHFL) PAT grew 20.7% YoY (declined 7.2% QoQ) to
INR5.1b (largely in line with est. of INR5.3b). Healthy AUM growth of 28.6% YoY,
52-Week Range (INR)
683/359
stable asset quality and stable incremental spreads of 315bp were the key
1, 6, 12 Rel. Per (%)
8/17/75
highlights of the quarter.
Avg Val (INR m)/Vol 000 691/1,306 Disbursements growth (+23% YoY) and lower repayments (-3.1% YoY) drove AUM
Free float (%)
72.2
up 28.6% YoY to INR540.2b. Mortgage continues to dominate the overall AUM mix
with 76% share. Share of corporate loans increased to 22% (21% in 1QFY15) and
Financials & Valuation (INR Billion)
share of CV declined to 2% v/s 4% in 1QFY15.
Y/E March
2015 2016E 2017E
GNPAs remained stable sequentially at 0.85% and NNPAs at 0.36%. Provisions of
Net Fin inc
21.8
27.7
35.5
INR640m during the quarter; INR530m were towards accelerated write-offs and
PPP
28.7
35.5
43.9
did not include any specific account.
EPS (INR)
53.5
62.6
75.1
EPS Gr. (%)
14.2
17.1
19.9 Other highlights: a) Tied up with CRISIL to grade its LAP bookcurrently the
grading is post disbursal and the company targets to make it pre-disbursal; b) fee
BV/Sh.(INR)
187
208
239
RoAonAUM
income of INR800m comprises INR430m processing fee, INR190m pre-payment
3.6
3.4
3.3
(%)
RoE (%)
fee and fee from selling insurance; c) overall cost of funds at 9.6% (9.70% in
30.8
32.3
33.5
Payout (%)
65.5
57.8
50.0
Q4FY15) and incremental borrowing at ~9.2%.
Valuations
Valuation and view: IHFLs transformation from a diversified lender to a focused
P/E (x)
mortgage player has yielded returns, with RoE/RoA improving from 3%/0.8% in
12.4
10.6
8.9
P/BV (x)
FY09 to 30.8%/4% in FY15. Focus on mortgage and market share gains will drive
3.6
3.2
2.8
P/ABV (x)
AUM growth of ~23% for the next three years. IHFL is among the lowest-levered
3.6
3.2
2.8
Div. Yld (%)
HFCs (6.3x) to support growth without dilution. Asset quality trend is likely to
5.3
5.4
5.6
remain stable. Improved borrowing profile, better credit rating and liquidity buffer
will aid the company maintain healthy spreads. IHFL offers superior return ratios
with +5% dividend yields. Maintain Buy with a target price of INR790.

M.Cap. (INR b) / (USD b) 236.5/3.7

Sunesh Khanna (Sunesh.Khanna@MotilalOswal.com); +91 22 3982 5521

Alpesh Mehta (Alpesh.Mehta@MotilalOswal.com); +91 22 3982 5415
Investors are advised to refer through disclosures made at the end of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Indiabulls Housing Finance

Exhibit 1: Quarterly performance v/s expectations and deviations for the same
Particulars
Income from operations
Other Income
Total income
Interest expenses
Net Income
Operating Expenses
Profit before Tax
Tax Provisions
Net Profit
Int Exp/ operating inc (%)
Other Income / Total Income (%)
Cost to Income Ratio (%)
Tax Rate (%)

1QFY16A
18,290
1,960
20,249
11,390
8,859
1,937
6,922
1,810
5,113
62.3
9.7
21.9
26.1

1QFY16E
18,308
2,930
21,238
12,213
9,025
1,963
7,062
1,765
5,296
66.7
13.8
21.8
25.0

Var. (%)
0
-33
-5
-7
-2
-1
-2
2
-3

Comments
Lower investments in market related instruments
NCDs are at 110bps lower than bank borrowings
Largely in-line with estimate

In-line with estimate

Source: Company, MOSL

Disbursement growth healthy at +23% YoY; AUM growth up at +28% YoY

Healthy disbursements at INR45.3b, grew +23% YoY, but declined ~30% QoQ
(due to seasonality), led to +28% AUM growth at INR540.2b.
The overall AUM mix skewed continues to be in favor of mortgages (76% share
v/s 75% in 1QFY15), with share of corporate rising to 22%. Share of commercial
vehicle segment continued to fall (as the company is winding off the CV lending)
to 2% of AUM as compared to 4% in 1QFY15.

Decline in funding costs led to stable blended spreads at 328bp

Spreads of 328bp were stable QoQ and down 22bp YoY; Borrowings increased
34.3% YoY (+7.1% QoQ) to ~INR509b. The company increased borrowing from
NCDs (35% v/s 32% in 1QFY15) and added ECBs during the last quarter in the
borrowing mix (forms 3% of total borrowings) as it tries to move away from high
cost bank funding (55% v/s 60% in 1QFY15).
Bond issuances have been healthy and raised INR38b via bonds during the
quarter; management has indicated that 50% of the incremental borrowings will
happen via bonds. Net gearing ratio increased to 6.3% (5.6% in 1QFY15).
IHFL continues to maintain healthy levels of liquidity with cash, cash equivalents
and investments in liquid debt instruments of INR95.5b and management wants
to maintain such high level of cash and cash equivalent in order to tide any
liquidity crisis.

Asset quality remain stable over the last 6 quarter

21 July 2015

GNPA% remained steady at 0.85% and NNPA at 0.36% respectively. GNPAs have
remained stable over the last 6 quarter; hovering at 0.83%-0.86%. Provisions of
INR640m during the quarter; INR530m were towards accelerated write-offs and
did not include any specific account. Management indicated that outlook on
asset quality remain healthy and it continues to be a key focus area.
Other highlights: a) Tied up with CRISIL to grade its LAP book; all incremental
LAP loans would be graded on a post-disbursal basis. The company targets to
convert this into a pre-disbursal rating mechanism in the future. Further, similar
grading scale would be introduced for other loan products b) Fee income of
INR800m includes INR430m processing fee, INR190m pre-payment fee and rest
is fee from selling insurance b) Overall cost of fund at 9.6% (9.70% in Q4FY15),
incremental borrowing at ~9.2%.
2

Indiabulls Housing Finance

Valuation and view

Indiabulls Housing Finance Ltd (IHFL) has transformed from a diversified lender
to a focused mortgage player. Mortgage focus has yielded returns, with
RoE/RoA improving from 3%/0.8% in FY09 to +30.8%/4% in FY15.
IHFL has devised a unique strategy 76% of the book forms mortgage/LAP
(which keeps asset quality under check) and 24% of book forms commercial
credit and commercial vehicles (supports blended spreads of ~328bp), thereby
enabling sound asset quality with superior returns.
Disbursement growth has picked up, we believe focus on mortgage and market
share gains will drive AUM growth of ~23% for next three years. One of the
lowest levered HFC (6.3x) to support growth without dilution.
Asset quality trend to remain stable. Improved borrowing profile, better credit
rating and liquidity buffer will help the company maintain healthy spreads.
Consistent outperformance on key parameters relative to sector. Average threeyear RoE at +27% is the best among the peer group. The company offers
superior return ratios with +5% dividend yield. Maintain Buy with a target price
of INR790 (3.3x FY17E BV).

Conference call highlights

21 July 2015

Guidance: 1) Target of 20-25% AUM growth. 2) Add 25-30 branches in FY16. 3)

Maintain GNPA at 70-90bps and NNPA at 30-50bps. 4) Maintain liquidity buffer
of 20% of liabilities to tide any sudden liquidity crunch.
Borrowings: Targets to reduce bank borrowing to 40% of total borrowing
(current: 55%); this will help further reduction in cost of funds. Borrowed
INR38b via bonds during the quarter.
Yields: Mortgage (~50 loan book) yields 10.7% (incr: 10.5%) and LAP (~26% of
loans) yields 14.7% (incr: ~13%). Others( Corporate and CVs) yields ~17% (16%
incremental yield
Cost of fund for 1Q was at 9.6% improvement of ~40bps YoY. Incremental CoF
at 9.2%. 99% of incremental borrowings in last 3 months and 57% in last 6
months have been through bonds. Spreads: Overall incremental spreads at
315bps.
Provisioning: Provisions of INR640m in 1Q. INR530m towards accelerated
provisioning and write-off (more of 100% provisioning) and rest for standard
provisioning.
NPLs: 1) GNPA stable at 0.85%. Break-up: INR1.8b corporate loans; INR1.64b CV
loan and rest in retail. 2) Deccan Chronicle (one of the two large problem
accounts). Sold 1 asset for INR150m. Total amount to be recovered is at
INR700m + interest; expect to recover it over next 12-18 months by selling other
assets. 3) Pale Royale (other large problem account): Is expected to get resolved
by 1QFY17. The account is not classified as NPL as the developer is making
timely interest payment.
Dividend Policy: Dividends to be capped at INR9/sh until reaches 50% dividend
payout (FY15 payout at 65%). Dividend payout would then stabilize at 50%.
CRISIL grading of LAP: Tied up with CRISIL to grade its LAP book; all incremental
LAP loans would be graded on a post-disbursal basis and reported on quarterly
basis going forward. The company targets to convert this into a pre-disbursal
rating mechanism in the future. Further, similar grading scale would be
introduced for other loan products.
3

Indiabulls Housing Finance

Story in charts
Exhibit 2: Disb. Growth picks up at +23% YoY

Exhibit 3: AUM growth of 28.6% boosted by healthy disb. Gr.

Disbursement (INR b)

AUM (INR b)

46.9
39.0 41.4

45

251

275

294

310

326

344

369

382

391

412

420

450

481

522

540

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

2QFY14

3QFY14

4QFY14

1QFY15

2QFY15

3QFY15

4QFY15

1QFY16

38
4QFY14

1QFY16

31
3QFY14

64

35
2QFY14

4QFY15

36
1QFY14

54

42
4QFY13

3QFY15

35
3QFY13

18.0

26.9 28.6

48

33
2QFY13

13.9

23.1

2QFY15

36
1QFY13

Exhibit 4: AUM mix squeezed further in favor of mortgage

Exhibit 5: Bank borrowing at 55% of overall borrowing

ECB(%)

Mortgages

NCD (%)

CP (%)

Bank Loans (%)

Source: Company, MOSL

Exhibit 6: Asset quality remains healthy

NNPA (%)

4.5 4.7
4.1 4.3
3.9
3.7

5.6 5.7
5.1 5.1 5.3 5.3

1QFY16

4QFY15

3QFY15

6.1 5.9 6.3

1QFY16

4QFY15

3QFY15

2QFY15

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

2QFY13

1QFY13

4QFY12

1QFY16

4QFY15

3QFY15

2QFY15

1QFY15

0.4 0.4 0.3 0.3 0.4 0.4

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

2QFY13

1QFY13

4QFY12

3QFY12

0.4 0.5

Source: Company, MOSL

21 July 2015

2QFY15

Exhibit 7: Net gearing (x) remains at comfortable level

0.9 0.8 0.8 0.9 0.9 0.9 0.9

0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.9
0.3
0.3 0.3 0.3 0.3 0.3 0.3

Source: Company, MOSL

3QFY12

GNPA (%)

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

2QFY13

1QFY13

4QFY12

1QFY16

4QFY15

3QFY15

2QFY15

1QFY15

4QFY14

3QFY14

2QFY14

1QFY14

4QFY13

3QFY13

68 66 62 65 63 62 61 66 63 62 60 60 60 59
55

2QFY13

71 71 71 71 72 72 72 73 73 74 75 76 76 76 76

1QFY13

3 3
23 24 28 27 29 30 31 28 29 30 32 32 32
31 35
9 10 10 8 8
8 8 6 8 8 8 8 8 7
7

4QFY12

8 8 8 8 8 7 7 6 6 5 4 3 3 2 2
20 21 21 21 20 21 21 21 21 21 21 21 21 22 22

3QFY12

Corporate

*AUM numbers are reclassified, hence not comparable

3QFY12

CV

20.0 19.6

37

44
4QFY12

Source: Company, MOSL

Others

25.1 25.4 23.0

1QFY15

35
3QFY12

30.4 29.8

AUM Gr. (%)

Source: Company, MOSL

Indiabulls Housing Finance

Financials: Valuation metrics
63.7 Rating
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
DCBB
FB
JKBK
SIB
Private Aggregate
SBIN (cons)*
PNB
BOI
BOB
UNBK
INBK
CRPBK
ANDB
IDBI
DBNK
Public Aggregate
HDFC*
LICHF
DEWH
IHFL
IDFC
RECL
REPCO
POWF
SHTF
MMFS
BAF
NBFC Aggregate

Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Neutral
Buy
Buy
Neutral
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy
Buy

CMP

Mcap

EPS (INR)

P/E (x)

(INR) (USDb) FY16 FY17 FY16

311
28.3 22.9 27.4 10.9
1,099 43.2 51.2 64.0 21.4
585
21.8 37.2 43.2 15.7
720
20.6 23.6 29.2 30.5
808
5.3
60.6 77.2 13.3
938
8.5
41.8 52.1 22.4
132
0.6
6.9 9.4 19.1
70
1.9
5.7 7.1 12.3
105
0.8
13.1 18.0 8.0
23
0.5
2.2 3.1 10.6
131.5
18.6
264
31.0 28.0 34.9 9.0
138
4.0
23.2 32.3 6.0
170
1.8
33.8 47.4 5.0
151
1.1
21.9 29.2 6.9
162
1.6
37.4 47.6 4.3
131
1.0
25.7 33.1 5.1
51
0.1
16.5 21.9 3.1
69
0.7
20.6 25.5 3.3
64
1.6
14.4 19.7 4.4
44
0.4
9.7 13.6 4.5
43.2
7.6
1,310 32.4
37
44 23.2
465
3.7
34
43 13.6
454
1.0
53
68
8.6
665
3.9
63
77 10.6
154
3.8
13
14 12.2
283
4.4
62
74
4.6
678
0.7
25
29 27.4
257
5.3
54
62
4.8
877
3.1
68
84 12.9
265
2.4
17
20 15.9
5,101
4.3
215 268 23.7
64.9
15.7

BV (INR)

FY17 FY16 FY17

8.7
131 151
17.2 287 336
13.6 218 254
24.7 188 216
10.5 328 389
18.0 287 332
14.0
62
71
9.8
50
55
5.8
136 150
7.5
28
31
15.3
7.2
230 258
4.3
219 247
3.6
421 459
5.2
184 206
3.4
319 358
3.9
284 310
2.3
141 158
2.7
170 188
3.2
157 173
3.2
130 141
5.8
17.7 169 194
10.9 182 217
6.7
358 410
8.6
213 248
10.7 109 120
3.8
300 357
23.2 152 180
4.1
285 330
10.5 462 528
13.3 113 127
19.1 1,344 1,568
13.2

P/BV (x)
FY16
1.90
3.83
2.68
3.84
2.46
3.27
2.13
1.41
0.77
0.82
2.89
1.10
0.63
0.40
0.82
0.51
0.46
0.36
0.41
0.40
0.34
0.78
5.13
2.55
1.27
3.12
1.15
0.94
4.46
0.90
1.90
2.36
3.80
2.82

FY17
1.59
3.27
2.31
3.33
2.07
2.82
1.85
1.27
0.70
0.76
2.52
0.97
0.56
0.37
0.73
0.45
0.42
0.32
0.37
0.37
0.31
0.71
4.05
2.15
1.11
2.68
1.03
0.79
3.77
0.78
1.66
2.09
3.25
2.46

RoA (%)

RoE (%)

FY16
1.72
1.97
1.75
1.51
1.66
2.03
1.07
1.07
0.79
0.47

FY17
1.78
2.02
1.69
1.60
1.71
2.09
1.15
1.12
0.97
0.59

FY16
16.3
19.2
18.2
13.9
19.9
18.0
11.8
12.0
10.0
8.2

FY17
17.2
20.6
18.2
14.5
21.5
16.8
14.1
13.6
12.6
10.5

0.72
0.67
0.35
0.66
0.58
0.58
0.54
0.62
0.58
0.36

0.80
0.82
0.43
0.78
0.65
0.65
0.64
0.66
0.69
0.44

12.2
11.0
8.3
12.5
12.4
9.2
12.3
12.2
9.5
7.7

13.9
13.9
10.8
15.0
14.1
11.1
14.7
14.2
11.9
10.0

2.52
1.50
1.28
3.90
2.20
3.13
2.16
3.06
2.27
2.60
3.05

2.55
1.56
1.32
3.87
2.19
3.16
2.12
3.12
2.56
2.67
2.95

23.5
20.3
15.7
31.9
11.5
22.2
17.5
20.3
15.3
15.7
19.2

23.6
21.4
17.6
33.3
12.0
22.5
19.2
20.2
16.9
16.6
18.4

*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries

21 July 2015

Indiabulls Housing Finance

Financials and valuations

Income Statement
Y/E March
Financing Income
Financing Charges
Net Financing income
Change (%)
Income from Investments
Fee based income
Net Income
Change (%)
Employee Cost
Other Operating Exp.
Operating profits
Change (%)
Total Provisions
% of operating profit
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Minority Interest
PAT
Change (%)
Dividend (Including tax)
Balance Sheet
Y/E March
Capital
Equity Share Capital
Preference Capital
Reserves & Surplus
Net Worth
Equity Net worth
Minority Interest
Borrowings
Change (%)
Deferred Tax Liability
Total Liabilities
Cash and bank balance
Investments
Change (%)
Loans
Change (%)
Net Current Assets
Net Fixed Assets
Total Assets
AUM Mix
Assets Under Management
Change (%)
On Books
% of AUM
Off books
% of AUM
E: MOSL Estimates

21 July 2015

2010
14,131
5,981
8,150
13.9
219
1,907
10,370
6.1
1,364
985
8,021
15.6
3,447
43.0
4,573
1,498
32.8
3,075
189.1
62
3,013
203.0
1,938

2011
21,246
8,995
12,252
50.3
1,016
2,465
16,105
55.3
1,656
1,816
12,632
57.5
2,717
21.5
9,915
2,406
24.3
7,509
144.2
82
7,427
146.5
3,620

2012
32,235
19,201
13,035
6.4
1,980
3,604
19,264
19.6
1,924
1,770
15,570
23.3
2,349
15.1
13,220
3,156
23.9
10,065
34.0
83
9,981
34.4
4,709

2013
42,634
25,991
16,643
27.7
2,748
2,397
21,789
13.1
2,245
1,761
17,783
14.2
1,231
6.9
16,551
3,891
23.5
12,661
25.8
76
12,584
26.1
7,277

2014
51,865
32,824
19,041
14.4
5,419
2,329
26,789
23.0
2,637
1,503
22,649
27.4
2,831
12.5
19,818
4,133
20.9
15,685
23.9
44
15,642
24.3
11,298

2015
61,210
39,442
21,768
14.3
8,055
3,439
33,262
24.2
3,249
1,343
28,670
26.6
3,945
13.8
24,725
5,713
23.1
19,012
21.2
1
19,011
21.5
14,560

2016E
76,626
48,911
27,714
27.3
9,263
3,955
40,932
23.1
3,834
1,561
35,537
24.0
4,217
11.9
31,320
8,143
26.0
23,177
21.9
50
23,127
21.6
15,640

2017E
96,118
60,583
35,535
28.2
10,374
4,430
50,339
23.0
4,600
1,816
43,922
23.6
5,352
12.2
38,570
10,800
28.0
27,770
19.8
50
27,720
19.9
16,216

2010
620
620
0
42,481
43,101
43,101
1,109
78,495
14.9
-251
122,454
12,313
11,683
-2.3
105,246
49.3
-7,233
445
122,454

2011
622
622
0
44,779
45,401
45,401
1,211
193,187
146.1
-722
239,077
21,413
30,894
164.4
194,297
84.6
-7,971
444
239,077

2012
624
624
0
48,432
49,056
49,056
1,315
252,870
30.9
-1,098
302,143
41,956
17,968
-41.8
254,675
31.1
-12,901
445
302,143

2013
625
625
0
51,061
51,686
51,686
1,449
312,858
23.7
-1,641
364,351
48,882
23,079
28.4
307,824
20.9
-15,889
456
364,351

2014
668
668
0
56,402
57,070
57,070
19
355,400
13.6
-1,848
410,641
44,190
29,470
27.7
354,450
15.1
-18,639
469
410,641

2015
711
711
0
65,606
66,317
66,317
20
474,870
33.6
-26
541,181
34,903
61,923
110.1
460,400
29.9
-17,244
514
541,182

2016E
739
739
0
76,159
76,898
76,898
20
565,797
19.1
-26
642,689
28,317
68,115
10.0
565,797
22.9
-20,693
440
642,662

2017E
739
739
0
87,663
88,402
88,402
20
730,095
29.0
-26
818,491
51,418
74,927
10.0
715,779
26.5
-24,832
485
818,463

110,232
23.4
105,246
95.5
4,986
4.5

198,250
79.8
194,298
98.0
3,952
2.0

275,212
38.8
253,460
92.1
21,752
7.9

344,250
25.1
307,824
89.4
36,426
10.6

411,690
19.6
354,450
86.1
57,240
13.9

522,350
26.9
460,400
88.1
61,950
11.9

665,644
27.4
565,797
85.0
99,847
15.0

842,093
26.5
715,779
85.0
126,314
15.0

Indiabulls Housing Finance

Financials and valuations

Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield - on Fin. Portfolio
Avg Cost of funds
Interest Spread on on books

2010

2011

2012

2013

2014

2015

2016E

2017E

15.9
8.1
7.8

14.6
6.6
8.0

14.1
8.6
5.5

13.5
10.1
3.4

13.7
10.1
3.6

13.1
9.7
3.4

12.9
9.4
3.5

12.8
9.4
3.4

8.2

7.9

5.5

5.4

5.0

4.7

4.7

4.7

Profitability Ratios (%)

RoE
RoA
RoA (on AUM)
Int. Expended/Int.Earned
Fee income/Net Inc.
Cost/Income Ratio
Empl. Cost/Op. Exps.

7.9
2.7
2.4
42.3
18.4
22.7
58.1

16.8
4.1
4.0
42.3
15.3
21.6
47.7

21.1
3.7
3.5
59.6
18.7
19.2
52.1

25.0
3.8
3.5
61.0
11.0
18.0
56.1

27.0
4.0
3.6
63.3
8.7
17.1
63.7

30.8
4.0
3.6
64.4
10.3
13.8
70.8

32.3
3.9
3.4
63.8
9.7
13.2
71.1

33.5
3.8
3.3
63.0
8.8
12.7
71.7

Asset quality
GNPA (%)
NNPA (%)

1.92
0.91

1.03
0.38

0.79
0.33

0.79
0.33

0.83
0.36

0.90
0.50

0.80
0.40

0.80
0.40

2010
139.1
6.8

2011
146.0
5.0

139.1

146.3

9.7
148.0

23.9
145.6

5.0
64.3

10.0
48.7

2012
157.3
7.8
4.2
157.4
4.2
32.0
34.0
20.8
13.0
40.6
2.0

2013
165.4
5.1
4.0
165.4
4.0
40.3
25.8
16.5
20.0
49.6
3.0

2014
168.7
2.0
3.9
168.7
3.9
46.8
16.3
14.2
29.0
61.7
4.4

2015
186.5
10.6
3.6
186.5
3.6
53.5
14.2
12.4
35
65.5
5.3

2016E
208.2
11.6
3.2
208.2
3.2
62.6
17.1
10.6
36.2
57.8
5.4

2017E
239.4
15.0
2.8
239.4
2.8
75.1
19.9
8.9
37.5
50.0
5.6

Net Interest Margin on AUM

Valuations
Book Value (INR)
BV Growth (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
EPS Growth (%)
Price-Earnings (x)
DPS (INR)
Dividend Payout (%)
Dividend Yield (%)
E: MOSL Estimates

21 July 2015

Indiabulls Housing Finance

Corporate profile
Company description

Exhibit 8: Sensex rebased

Indiabulls Housing Finance (IHFL) is the fourth

largest housing finance company in India with AUM
of INR522b. It was established as a wholly-owned
subsidiary of Indiabulls Financial Services (IBFSL). In
early 2013, keeping with IHFLs long-term
commitment to the housing finance business, the
company was reversed-merged into its housing
finance subsidiary IHFL. IHFL offers home loans to
target client base of middle and upper-middle
income individuals and small and medium-sized
enterprises, or SMEs. It has presence across 200+
locations across India.

Exhibit 9: Shareholding pattern (%)

Indiabulls Hous.

Sensex - Rebased

600
500
400
300
Jul-14

Oct-14

Jan-15

Apr-15

Jul-15

Exhibit 10: Top holders

Mar-15

Dec-14

Mar-14

Promoter

27.8

27.8

41.8

DII

2.9

3.2

3.4

FII

38.7

45.8

39.2

Others

30.6

23.2

15.6

Holder Name
Copthall Mauritius Investment Ltd
Cinnamon Capital Ltd
Rajiv Rattan
HSBC Global Investment Funds A/c HSBC GIF Mauritius
Merrill Lynch Capital Markets Espana S A S V

Note: FII Includes depository receipts

Exhibit 11: Top management

Name

700

%
Holding
4.9
4.3
4.1
3.1
3.1

Exhibit 12: Directors

Designation

Name

Name

Sameer Gehlaut

Chairman

Sameer Gehlaut

Shamsher Singh Ahlawat*

Gagan Banga

Vice Chairman and MD

Gagan Banga

Aisharya Katoch

Ashwini Kumar

Deputy Managing Director

Rajiv Rattan

Joginder Singh Kataria

Mukesh Garg

Chief Financial Officer

Saurabh Kumar Mittal

Ajit Kumar Mittal

Pinank Shah

Head Treasury

Karan Singh Khera*

Ashwini Omprakash Kumar

Ramnath Shenoy

Executive Vice President, IR

Ram Kumar Sheokand*

Kamalesh Shailesh Chandra Chakrabarty*

Prem Prakash Mirdha*

*Independent

Exhibit 13: Auditors

Exhibit 14: MOSL forecast v/s consensus

Name

Type

Deloitte Haskins & Sells LLP

N D Kapur & Co

Statutory
Internal

21 July 2015

EPS
(INR)
FY16
FY17
FY18

MOSL
forecast

Consensus
forecast

Variation
(%)

62.7
76.8
95.2

63.6
75.9
87.4

-1.3
1.2
8.9

Indiabulls Housing Finance

NOTES

21 July 2015

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INDIABULLS HOUSING FINANCE

No
No

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