top of page

How Indiabulls Housing Finance Turned Around 🏘️

95% - that is the quantum by which the stock of Indiabulls Housing Finance (IHF) fell in a mere year and a half (Sept’18-Mar’20), with back-to-back bad news coming at the NBFC

In what was a cataclysmic shock to investors in 2018, IHF’s stock price went from Rs. 1,230 to a measly Rs. 80 as the company found itself in the middle of a shitstorm.


indiabulls housing finance

Since then, the company has, to put it simply, cut the bulls**t, with the stock now at around Rs. 170 - and a renewed focus to gain back the lost investor trust.


This iconic turnaround story, with immense potential, is materialising before our eyes, urging us to take a closer look.


Crisis Time

What does it take to bludgeon a company like IHF which was among the top 3 housing finance companies in the country and the top 20 largest consumer financial services companies in the world in 2018? Unfortunately, everything going wrong all at once!


what went wrong with indiabulls housing finance

Therefore, IHF became that stock that no one wanted to touch with a 10-foot pole and went down as a horrible mistake in many investors’ portfolios - until the company decided to rewrite its downtrodden fate.


Revival Time

What transpired since that awful September of 2018 was nothing short of a turnaround story of the decade, with all 3 areas that previously affected IHF detrimentally being solved:


how did indiabulls housing finance turn around

So while revenue has taken a hit in the process, having gone down from Rs. 15,000 crore in FY18 to Rs. 8,700 crore in FY23 (around 60% of what it was in FY18), this is due to its lending capacity also reducing to around 55% of what it used to be in FY18, as part of its debt repayment.


With a clean chit on all fronts, the company is all set to now grow its lending capacity again on the back of the co-lending model, with a projected CAGR of 20% over the next 5 years!


Furthermore, in an attempt to bolster investor faith even more, the company is even planning a rebrand by changing its name to Samman Capital (which literally translates to “respect”) with plans to grow its retail lending business.


It even issued US$ 350 million in overseas bonds to fund this venture, with Blackrock having bought into this as well!


With the market finally seeing a good reason to invest back into this company, keeping this one on your watchlist might just help you witness the turnaround of the decade!



Alphaware Advisory Services Private Limited (Brand Name - Rupeeting) makes no warranties or representations, expressed or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.

Past performance is not indicative of future returns. Please consider your investment requirements, risk tolerance, goals, time horizon, risk and reward appetite, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Investments in mutual funds, stocks, ETFs and any other investment products that you see Rupeeting's views being expressed on are subject to market risks. Please read all scheme related documents carefully.

The content and data available in the material prepared by the company and on the website of the company, including but not limited to index value, return numbers and rationale are for information and illustration purposes only. Charts and performance numbers do not include the impact of transaction fee and other related costs. Past performance does not guarantee future returns and performances of the portfolios are subject to market risk.

The information is only for consumption by the client and such material should not be redistributed.

Data used for calculation of historical returns and other information is provided by exchange approved third party vendors and has neither been audited nor validated by the Company. Detailed return calculation methodology is available here. Detailed volatility calculation methodology is available here.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Alphaware Advisory Services Private Limited [SEBI RIA Registration No: INA000015747] [Validity of registration: February 08, 2021-Perpetual] [BASL ID: 1610] [Address: 1 Janki Centre, Off Veera Desai Road, Andheri West, Mumbai 400053] [Principal Officer details: Mr. Sagar Lele, Email id: sagar.lele@rupeeting.com, Contact No. +91-9769770046] [Compliance Officer details: Mr. Sagar Lele, Email id: sagar.lele@rupeeting.com, Contact No. +91-9769770046] [Grievance Officer details: Mr. Sagar Lele, Email id: sagar.lele@rupeeting.com, Contact No. +91-9769770046] [Platform Partner: smallcase] [CIN – U74999MH2019PTC320573] [GST No: 27AARCA8847R1ZF]

[SEBI regional address: SEBI Bhavan BKC, Plot No. C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai, Maharashtra, India, Pin Code – 400051.]

19 views0 comments

Comentários


bottom of page