🏦India Shelter Finance Corporation Ltd: Offering Home Loans and Loans against Property for low and middle-income groups.
Detailed Company Analysis🧵👇
Detailed Company Analysis🧵👇
✍️Company Overview:
🔸India Shelter Finance Corporation Ltd was originally incorporated as "Satyaprakash Housing Finance India Limited" on October 26, 1988. In 2009, Mr. Anil Mehta gained control of the company, leading to a name change to "India Shelter Finance Corporation Ltd."
🔸India Shelter Finance Corporation Ltd was originally incorporated as "Satyaprakash Housing Finance India Limited" on October 26, 1988. In 2009, Mr. Anil Mehta gained control of the company, leading to a name change to "India Shelter Finance Corporation Ltd."
🔸Company primarily focuses on affordable housing finance for retail customers and operates 203 branches primarily in Rajasthan, Maharashtra, Madhya Pradesh, and Karnataka covering 94% of the Indian housing finance market.
🔸It has a robust technology infrastructure and focus on self-employed customers, especially first-time homebuyers in Tier II and Tier III cities.
✍️Business Vertical:
⚡️Co offers Home Loans and Loans against Property to low and middle-income segments in India, using technology and analytics, with interest rates between 10.5% to 20% per An and average loan sizes of 0.5 Mn to 5 Mn rupees.
⚡️Co offers Home Loans and Loans against Property to low and middle-income segments in India, using technology and analytics, with interest rates between 10.5% to 20% per An and average loan sizes of 0.5 Mn to 5 Mn rupees.
🔸Home Loans: Co provides home loans for various purposes like repairs, upgrades, self-construction, plot purchase, and property acquisition.
🔸Loan Against Property: Co offers secured loans using self-occupied residential properties as collateral.
🔸Loan Against Property: Co offers secured loans using self-occupied residential properties as collateral.
✍️Geographical AUM Bifurcation:
🔸Tier 1: 10.5% in FY23 vs 10% in FY22
🔸Tier 2: 42.5% in FY23 vs 45% in FY22
🔸Tier 3: 47% in FY23 vs 45% in FY22
🔸Tier 1: 10.5% in FY23 vs 10% in FY22
🔸Tier 2: 42.5% in FY23 vs 45% in FY22
🔸Tier 3: 47% in FY23 vs 45% in FY22
✍️Key Metrics:
🔸M Cap: ₹6,787 Cr
🔸P/E: 43.8
🔸CMP: ₹634
🔸ROE: 13.4%
🔸Assets Under Management: ₹ 5,181 Cr
🔸Net Interest Margin: 10.6%
🔸Net NPA Ratio: 0.72%
🔸Return on Assets: 4.12%
🔸Capital Risk Adequacy Ratio: 48.7
🔸Provision Coverage Ratio: 28.74%
🔸M Cap: ₹6,787 Cr
🔸P/E: 43.8
🔸CMP: ₹634
🔸ROE: 13.4%
🔸Assets Under Management: ₹ 5,181 Cr
🔸Net Interest Margin: 10.6%
🔸Net NPA Ratio: 0.72%
🔸Return on Assets: 4.12%
🔸Capital Risk Adequacy Ratio: 48.7
🔸Provision Coverage Ratio: 28.74%
✍️Financials Highlights:
🔸Revenue in FY23 at ₹584 Cr⬆️36% YOY.
🔸In FY23, Net interest income ⬆️to ₹293 Cr with a 32% CAGR from FY21-23.
🔸Net profit ⬆️from ₹87 Cr to ₹155 Cr, showing a 33% CAGR from FY21-23.
🔸TTM EPS at ₹35.32
🔸Revenue in FY23 at ₹584 Cr⬆️36% YOY.
🔸In FY23, Net interest income ⬆️to ₹293 Cr with a 32% CAGR from FY21-23.
🔸Net profit ⬆️from ₹87 Cr to ₹155 Cr, showing a 33% CAGR from FY21-23.
🔸TTM EPS at ₹35.32
✍️Key Highlights:
🔸Co serves low to middle-income customers, with 70.7% first-time home loan applicants in Tier II and Tier III Indian cities.
🔸Over the past 2.5 years, the asset quality of the company have improved.
🔸Co serves low to middle-income customers, with 70.7% first-time home loan applicants in Tier II and Tier III Indian cities.
🔸Over the past 2.5 years, the asset quality of the company have improved.
🔸Co maintains a strong asset quality with GNPA at 1.00%, NNPA at 0.72%, and 68.9% of customers with a credit score of 650+ as of September 2023.
🔸Co achieved a strong two-year CAGR of 40.8% in Assets Under Management (AUM).
🔸Co achieved a strong two-year CAGR of 40.8% in Assets Under Management (AUM).
🔸The average Loans Against Property ticket size in FY23 was ₹10 lakhs, with an average tenure of 11 years.
🔸The average ticket size of these loans in FY23 was ₹11 lakhs with average tenure of 15 years.
🔸During H1 FY24, 98.5% of disbursed loans were originated in-house.
🔸The average ticket size of these loans in FY23 was ₹11 lakhs with average tenure of 15 years.
🔸During H1 FY24, 98.5% of disbursed loans were originated in-house.
🔸Co has been able to maintain an average sanction loan-to-value (LTV) on portfolio low at 50.9% with 55.1% for home loans and 45.3% for LAP.
🔸As of September 30, 2023, 70.6% of AUM from self-employed customers, and 70.7% are first-time home loan takers.
🔸As of September 30, 2023, 70.6% of AUM from self-employed customers, and 70.7% are first-time home loan takers.
✍️IPO details:
🔸Co recently issued 24,340,771 Equity Shares through an IPO priced at ₹469 to ₹493 per share on December 13, 2023.
🔸The objective of issuing an IPO is to raise funds for future capital requirements towards onward lending and General corporate purposes.
🔸Co recently issued 24,340,771 Equity Shares through an IPO priced at ₹469 to ₹493 per share on December 13, 2023.
🔸The objective of issuing an IPO is to raise funds for future capital requirements towards onward lending and General corporate purposes.
✍️Industry Outlook:
🔸Housing finance credit outstanding as of March 31, 2023, was ₹31 lakh crore, with a 13.5% 4-year CAGR growth due to rising incomes and demand.
🔸The housing finance segment is expected to reach ₹47 lakh crore by FY26.
🔸Housing finance credit outstanding as of March 31, 2023, was ₹31 lakh crore, with a 13.5% 4-year CAGR growth due to rising incomes and demand.
🔸The housing finance segment is expected to reach ₹47 lakh crore by FY26.
🔸Public sector banks hold a 40% market share in housing loans, followed by HFCs at 34% in FY23.
🔸India's mortgage market has two segments: normal housing loans (>₹25 lakhs) and affordable housing loans (<₹25 lakhs), accounting for 37% of total credit.
🔸India's mortgage market has two segments: normal housing loans (>₹25 lakhs) and affordable housing loans (<₹25 lakhs), accounting for 37% of total credit.
✍️Key Strenghts:
🔸Diversified distribution of AUM with presence across 15 states.
🔸Co excels in combining physical and digital models, utilizing top-notch IT systems and technology to improve operations and customer experience.
🔸Diversified distribution of AUM with presence across 15 states.
🔸Co excels in combining physical and digital models, utilizing top-notch IT systems and technology to improve operations and customer experience.
🔸Growing demand for housing units due to increased urbanisation.
🔸Strong capital base backed by marquee investors.
🔸Strong capital base backed by marquee investors.
✍️Key Risks:
🔸63% of AUM is concentrated in Rajasthan, Maharashtra, and Madhya Pradesh; adverse events in these regions could impact the company's business operations.
🔸Volatility in the financial market.
🔸Increasing competition from existing as well as new players.
🔸63% of AUM is concentrated in Rajasthan, Maharashtra, and Madhya Pradesh; adverse events in these regions could impact the company's business operations.
🔸Volatility in the financial market.
🔸Increasing competition from existing as well as new players.
🔸Co targets first-time home loan customers in smaller Indian cities, which may have a higher risk of nonpayment or default.
🔸Co mainly serves low to middle-income customers with 71% self-employed and 29% salaried, facing default risks from various factors.
🔸Co mainly serves low to middle-income customers with 71% self-employed and 29% salaried, facing default risks from various factors.
✍️Future Outlook:
🔸Company's focus on customer satisfaction drives long-lasting relationships.
🔸Co expects a CAGR of 20.58% between 2022 and 2027 for the housing finance market.
🔸It is expected to reach ₹ 64.34 trillion by FY 2026-27.
🔸Company's focus on customer satisfaction drives long-lasting relationships.
🔸Co expects a CAGR of 20.58% between 2022 and 2027 for the housing finance market.
🔸It is expected to reach ₹ 64.34 trillion by FY 2026-27.
✍️Peer:
🔸Aptus Value Housing Finance India Ltd
🔸Aavas Financiers Ltd
🔸Home First Finance Company India Ltd
🔸Aptus Value Housing Finance India Ltd
🔸Aavas Financiers Ltd
🔸Home First Finance Company India Ltd
✍️Shareholding Pattern:
🔸Promoters: 48.30%
🔸FIIs: 5.84%
🔸DIIs: 12.61%
🔸Retailers: 33.24%
🔸Promoters: 48.30%
🔸FIIs: 5.84%
🔸DIIs: 12.61%
🔸Retailers: 33.24%
⚡️Disclaimer: The above data should not be considered as a Buy or Sell recommendation. The analysis has been done for educational and learning purpose only.
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