Industry Profile: Housing is a primary necessity for humans and is a basic indicator of growth and social well-being. Development in the housing sector is not just crucial to economic growth but is also one of the tools for economic development considering the accelerator impact it has on various industries, including construction and infrastructure, the Cement sector including the labor market; it generates demand for supporting industries and leads to the creation of job opportunities. Therefore, the development of housing in a country is a sign of economic welfare. That is why Govt is also supporting the housing sector as it gives houses to someone but infuses Capital and other things into the economy.
For any emerging economy, the development of the housing sector has its challenges. The biggest of these challenges is access to finance. While investment in real estate is an easy candidate for borrowing, real estate lending is more opportunity-based. In India, access to finance for housing needs is essentially concentric and focused on higher income groups, as that is the sector where there is formal evidence of income such as salary slips or income-tax returns.
Company Profile: Based in Delhi, the company is the second-largest private Housing Finance company in India. The company has products ranging from loans against property, Home loans, and Loans for home improvement. The company has more than 200 branches and operates in more than 100 cities. The company is a subsidiary of Indiabulls financial service. The market is growing fast, and the company is among the leader in it. The company is mainly providing loans to govt servants and midsize home loans.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=68 /]
Future Prospects: Company is primarily held by Foreign investors. There are many big names like Vanguard, Merrill-Lynch, Morgan Stanly, Prudential Assurance Company, and Nomura India has it in their various funds. All due to this, Corporate Governance is not a big issue. India’s housing sector is growing fast, and the company is expecting a 30% growth in the loan book. As an investor, what I am hoping for is a return. The company is one of the top dividend-paying and is part of Nifty with another housing finance company, HDFC, but still, the ratios are telling that ROE and ROA are looking better.
