NSE Symbol: IBULHSGFIN | BSE Code: 535789
IBHFL is a housing finance company and a part of the Indiabulls Group. The National Housing Bank regulates it. The Indiabulls Housing Finance specializes in providing home loan solutions and other related products like loans against property, home extension loans, plot loans, et cetera. Since its establishment, more than 9 lakh customers are served by the company and achieved their dreams of owning a house. The vision of IBHFL is to make housing more affordable for the people and ensure that their home buying experience is hassle-free. Across India, IBHFL has more than 200 branches along with two representative offices in London and Dubai to serve NRIs/PIO.
1. Corporate Office:
Indiabulls Housing Finance Limited, Indiabulls Finance Centre, Tower 01, 4th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai - West, Maharashtra - 400013 Contact number: 022-61891000
2. Head Office:
Indiabulls House, 448-451, Udyog Vihar, Phase -V, Gurugram, Haryana - 122001, Contact number: 0124-6681199
Indiabulls Housing Finance Limited forms one of the three pillars of operations along with real estate and wealth management. In May 2005, the company was established as a sister concern of Indiabulls Financial Service Limited. In 2013, the two entities were merged, and since then, it has grown to become a prominent name among the housing finance organization.
Mr. Sameer Gehlaut - Chairman and Founder
He works as the Executive Chairman of the HFL. He has worked in various capabilities with the Indiabulls Group, including his service as the director of Indiabulls Real Estate Limited and Indiabulls Ventures Limited. Having experience for more than 15 years of being in the real estate and finance sector, he has leveraged his knowledge and expertise to make Indiabulls a leading company in the housing finance sector. He holds a bachelor's degree in Mechanical Engineering which he obtained from the Indian Institute of Technology, Delhi.
Mr. Gagan Banga - Vice Chairman and Managing Director
Mr. Banga has expertise in the industry of more than 15 years and has worked primarily with NBFCs and housing finance companies. He has been associated with the Indiabulls Group for over ten years and has been a critical member in promoting its commercial segment. He has assisted the company to become one of the largest housing finance companies in India.
The company's balance sheet has shown a 20% year-on-year growth, and the turnover by the end of December 2017 was Rs.1,228 billion. Similarly, the company's PAT has also risen by 36.4% Y-o-Y, to Rs.28.17 billion. Its earnings per share are Rs.85.75. The asset quality of the company has also improved remarkably over the same period last year. Gross NPAs have been reduced to 0.77% from 0.85%, whereas Net Non Performing Assets have declined to 0.31% from 0.36%. Thus improvement in NPAs was driven by an increase in the share of low-risk home loans.
One of the significant factors which are influencing this steady growth is the rapid expansion of the affordable housing segment. Following the 'Pradhan Mantri Awas Yojana - Affordable Housing for All' initiative launched by the current honorable prime minister, Mr. Narendra Modi, the affordable housing portfolio of Indiabulls Housing Finance grew remarkably by 24% year on year. It has been possible due to the improved affordability of borrowers which is caused by the reduction in interest rates and capital subsidy.
The opening price of the Indiabulls Housing Finance stock on January 1, 2018, was Rs.1,196 on NSE. The stock price didn't undergo any drastic change on either NSE or BSE for most of the month. However, after the Q3 FY18 results were announced, in which the companies reported a surge in profit, the share price moved up to reach a new high at Rs.1,440 on NSE. As a result, the closing price at the end of the month on NSE was Rs.1,390.
In February, a dividend of 700% was announced. The share price at the start of the month on NSE was Rs.1,389. By late-February, the stock had lost more than Rs.100 in its value, driven by weak global cues and turbulence in international markets. As a result, the closing price of the Indiabulls Housing Finance share at the end of the month on NSE was Rs.1,254.
Indiabulls Housing Finance Limited has done exceptionally well over the years, regarding performance. The balance sheet of the company is highly consistent, along with the revenue, and has increased year-by-year. Furthermore, the number of non-performing assets also has been the lowest in the industry.
It is expected that the urban housing requirement in India will rise to 45 million units by 2022, driven by rapid urbanization and growth in potential income. The housing finance market in the country is likely to incline by twofold in the next five years concerning "Pradhan Mantri Awas Yojana-Affordable Housing For All."
In India, HDFC Limited is the largest House Financing Company, followed by Indiabulls Housing Finance Limited regarding market capitalization and turnover in the housing finance market.
From a long-term perspective, investing in Indiabulls Housing stocks is more favorable. However, investment at the entry point in stocks may not be that feasible. Alternately, you can also look at mutual funds with holdings in this company. It is advisable to perform your research before investing.
A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.
Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.
The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.
NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.
The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.
Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.