Information About Indiabulls House Finance Ltd:

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.

Location of IBHFL:

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

History of the India Bulls:

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.

Management of Company:

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.

Company's Wealth and Recent Performance:

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.

Indiabulls Housing Finance Limited Stock Trends in 2018:

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.

Should you invest in Indiabulls Housing Finance Limited?

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.

Stocks or Mutual Funds: Here is our recommendation

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.

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