24 April 2017
4QFY17 Results Update | Sector:
Financials
Indiabulls Housing Finance
BSE SENSEX
29,656
S&P CNX
9,218
CMP: INR1,007
TP: INR1,227 (+22%)
Buy
Impressive performance on all fronts
Indiabulls Housing Finance's (IHFL) PAT grew 24% YoY to INR8.4b (1% below our
estimate) in a quarter that was characterized by strong disbursement growth
(+44% YoY), stable spreads and cost-to-income ratio. The tax rate, however, was
lower at 14%, the impact of which was offset by increased additions to floating
provisions buffer. AUM growth of 33% YoY (+12% QoQ) was the highest in 19
quarters.
Yield on loans declined sharply by 44bp QoQ to 11.63% due to continued mix
shift toward retail home loans, coupled with interest rate cuts in the quarter.
However, cost of funds also declined 41bp QoQ, resulting in largely stable
spreads (3.24% v/s 3.27% QoQ).
FY17 marked a year of sharp change in liability mix. Only 4% of incremental
borrowings came from banks. Management targets to continue reducing the
share of bank borrowings from 37% currently to 20-25% by FY20.
PAT for FY17 grew 24% YoY, in-line with the trend witnessed in the past few
years. RoA/RoE remained best-in-class at 3.1%/26%.
GNPA/NNPA remained largely stable at 0.85%/0.36%. Provisions made during
the quarter amounted to INR3.11b v/s INR1.78b in 3QFY17. The company made
additional provisions due to tax benefit in enjoyed on DTAs in the quarter.
Valuation and view:
IHFL's transformation from a diversified lender to a focused
mortgage player has yielded returns, with RoE/RoA improving from 3%/0.8% in
FY09 to +26%/3.4% in FY17. Focus on core mortgage loans and market share
gains should drive AUM growth of 26% over next three years. Also, capital
consumption will be lower, with a gradual shift toward individual home loans
and increased sell-downs. IHFL is among the lowest-levered HFCs. Asset quality
trend is likely to remain stable. We expect RoE to cross 30% by FY20. We largely
maintain our EPS estimates. We use RI model with Rf of 7%, CoE of 15% and
terminal growth rate of 5%. Maintain Buy with a TP of INR1,227 (3.8x FY19E
P/B).
Bloomberg
Equity Shares (m)
M.Cap. (INR b) / (USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
IHFL IN
421.3
424.2/6.6
1013 / 616
4/10/35
1689
76.4
Financials & Valuation (INR Billion)
Y/E March
2017 2018E 2019E
Net Fin inc
39.9 49.0 60.3
PPP
45.5 56.4 70.0
EPS (INR)
69.0 82.2 101.6
EPS Gr. (%)
24.0 19.2 23.5
BV/Sh. (INR)
288 322 364
RoA on AUM (%) 3.1
2.9
2.8
RoE (%)
25.5 27.0 29.6
Payout (%)
52.5 50.0 50.0
Valuations
P/E (x)
14.6 12.2
9.9
P/BV (x)
3.5
3.1
2.8
P/ABV (x)
3.5
3.1
2.8
Div. Yield (%)
3.6
4.1
5.0
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +91 22 6129 1526
Piran Engineer
(Piran.Engineer@MotilalOswal.com); +91 22 3980 4393

Indiabulls Housing Finance
Exhibit 1: Quarterly performance v/s expectations and deviations for the same
Particulars
Income from operations
Other Income
Total income
Interest expenses
Net Income
Operating Expenses
Profit before Tax
Tax Provisions
Net Profit
Minority Int
Net Profit (after minority interest)
Int Exp/ operating inc (%)
Other Income / Total Income (%)
Tax Rate (%)
E: MOSt Estimates
4QFY17A
29,314
2,935
32,249
17,391
14,858
5,160
9,698
1,325
8,373
32
8,405
59.3
9.1
13.7
4QFY17E
28,028
4,990
33,018
16,657
16,361
4,827
11,534
2,976
8,558
-56
8,502
59.4
15.1
25.8
Var. (%)
5
-41
-2
4
-9
7
-16
-55
-2
-157
-1
Comments
In-line with estimate
Higher interest cost led to Total Income miss
Higher provisioning due to tax benefit
Tax break on DTA
In-line with estimate
In-line with estimate
Management has guided to
25-20% AUM growth over
the medium term
AUM growth robust at 33% YoY – Highest in 19 quarters
Disbursements were up 44% YoY to INR132b, driven by strong growth in
corporate credit (lease rental discounting).
As a result, AUM growth in the quarter was 33% YoY and 12% QoQ (highest in
the past 19 quarters).
Loan mix continues to evolve in favour of retail home loans (56% of total loans),
while LAP and corporate accounted for 22% of total loans each.
Management guides to 25-30% AUM growth over the foreseeable future.
It plans to achieve a balance sheet size of INR2t by FY20, with PAT in excess of
INR55b.
Post the sharp MCLR cuts by banks in January, IHFL’s incremental cost of funds
stood at 7.83% in 4QFY17. Management believes this should help cushion the
yield pressure due to cut in home loan rates. Management has guided to
incremental spreads of 275-300bp and book spreads of 300-325bp going
forward.
Incremental yields in each segment are as follows- HL: 8.98%, LAP: 11.25% and
Corporate: 12%
Management targets share of bank borrowings to further decline to 20-25% by
FY20 (currently 37%). It also plans to increase the share of sell downs to 20%
from 9% currently. This change in liability mix will help support margins.
GNPA% remained steady at 0.85% and NNPA at 0.36% respectively.
Provisions made during the quarter amounted to INR3.11b, as against INR1.78b
in 3QFY17. The company made additional provisions during the quarter due to
the tax benefit in enjoyed on DTAs this quarter.
Indiabulls Housing Finance Ltd (IHFL) has transformed from a diversified lender
to a focused mortgage player. Mortgage focus has yielded returns, with
RoE/RoA improving from 3%/0.8% in FY09 to +26%/3.4% in FY17.
2
Incremental spreads
expected to range between
275-300bp
Stable spreads
Asset quality continue to remain stable
Valuation and view
24 April 2017

Indiabulls Housing Finance
We believe the focus on mortgage and market share gains will drive AUM
growth of ~26% for the next three years. As individual home loans have lower
risk weight than corporate loans, capital consumption will be lower with gradual
shift towards individual home loans. At the same time, increased sell-downs will
also help improve return ratios.
One of the lowest levered HFCs, IHFL would need no further dilution over the
next couple of years.
IHFL has consistently outperformed peers on key parameters. Average three-
year RoE at 26% is the best among the peer group. The company offers superior
return ratios with a 4% dividend yield. We use RI model with Rf of 7%, CoE of
15% and terminal growth rate of 5%. Maintain
Buy
with a target price of
INR1,227 (3.8x FY19E P/B).
Exhibit 2: We maintain our estimates
INR B
Net Financing income
Other Income
Net Income
Opex
PBT
Tax
PAT
AUM
Loans
Borrowings
Credit Cost
RoA on AUM
Old Est
FY18
FY19
46.5
56.6
18.3
22.0
64.8
78.7
9.1
10.4
48.2
58.6
12.5
15.2
35.6
43.3
1,126
1,423
1,002
1,267
1,143
1,457
0.75
0.75
2.9
2.7
New Est
FY18
FY19
49.0
60.3
16.3
20.4
65.3
80.6
8.9
10.7
46.9
58.0
12.2
15.1
34.6
42.8
1,177
1,487
1,059
1,339
1,091
1,385
0.90
0.90
2.9
2.8
% Change
FY18
FY19
5.2
6.4
-11.0
-7.5
0.6
2.5
-2.3
2.1
-2.6
-1.1
-2.6
-1.1
-2.6
-1.1
4.5
4.5
5.7
5.7
-4.5
-4.9
Source: Company, MOSL
Conference call highlights
Business growth
Reiterated loan book growth guidance of 25-30% and 20-25% for all other
financial parameters.
Plan to reach INR2tn balance sheet by FY20, with PAT in excess of INR55b
Disbursements in 4QFY17: Home loans – INR60b; LAP: INR20b; LRD: INR30b.
Margins
Incremental CoF: 7.83% in 4QFY17; Continue to guide to incremental spreads:
2.75-3% and book spreads of 3-3.25%
NCDs are still 50-60bp cheaper than bank loans, even after the MCLR cuts
Incremental yield- HL: 8.98%, LAP: 11.25%, Corp: 12%. Book yield - HL: 9.7%,
LAP: 13.5%, Corp: 14%.
Business Updates
24 April 2017
Loan Mix: Home loans - 56%, LAP - 22%, Corporate - 22%. Will increase share of
home loans to 66% by FY20.
Only 4% of incremental funding in FY17 was from banks
Fee income in 4QFY17: INR1.93b
Look to raise USD1b from overseas markets
3

Indiabulls Housing Finance
Had a tax break on DTA in 4QFY17.
Provided INR1.25b more this quarter (due to tax benefit). INR3.11b credit cost in
4QFY17.
Expect 60-70bp credit costs in FY18 and beyond.
By FY20, share of bank borrowings is targeted to reduce to 20-25%.
Others
Builders have started to focus more on the ‘affordable housing’ segment.
RERA – Will increase demand for formal credit.
‘SMART CITY’ home loans comprise 7% of total loan sourcing.
eHome Loans now contribute 20% of total loan applications. Opex in such loans
is half of that of other retail home loans.
OakNorth – Equity capital stands at GBP150m.
Well capitalized for the next 2 years.
24 April 2017
4

Indiabulls Housing Finance
Exhibit 3: Quarterly Snapshot
FY15
1Q
Profit and Loss (INR m)
Income from operations
Interest Expenses
Net Interest Income
Other Income
Total Income
Operating Expenses
Employee
Others
PBT
Taxes
PAT
Minority Interest
PAT Post Minority Interest
Asset Quality
GNPA (INR m)
NNPA (INR m)
Gross NPAs (%)
Net NPAs (%)
Provisions on AUM (%)
Margins (%) - (calculated)
Yield on loans
Cost of funds
Spreads
NIMs
Ratios (%)
Cost to Income
Tax Rate
RoE (Calc.)
RoA (Calc.)
Business Details
Disb.-Quarterly (INR m)
AUM (INR m)
Borrowings (INR m)
Total AUM Mix (%)
Mortgages
Corporate
CV
Liability Mix (%)
Bank Loans
CP
NCD
ECB
Other Details
Dividend (INR/sh)
13,641
8,894
4,747
2,249
6,996
1,640
716
924
5,356
1,119
4,238
0
4,238
2Q
15,186
9,553
5,632
1,872
7,504
1,851
894
956
5,654
1,171
4,483
0
4,483
3Q
17,011
10,281
6,730
1,577
8,307
2,085
817
1,268
6,222
1,441
4,781
0
4,781
4Q
18,777
10,713
8,064
2,449
10,513
3,020
822
2,198
7,494
1,983
5,511
0
5,511
1Q
18,290
11,390
6,900
1,960
8,859
1,937
914
1,023
6,922
1,810
5,113
0
5,113
2Q
19,850
12,450
7,400
2,607
10,007
2,594
1,059
1,535
7,413
1,858
5,555
0
5,555
FY16
3Q
20,751
12,258
8,493
2,326
10,820
2,765
1,012
1,753
8,055
2,010
6,045
-21
6,024
4Q
24,009
13,616
10,392
2,463
12,855
3,957
1,147
2,811
8,898
2,083
6,815
-60
6,754
1Q
23,720
14,109
9,611
2,255
11,866
3,116
1,185
1,931
8,750
2,401
6,349
-49
6,301
2Q
25,098
16,279
8,819
3,651
12,470
3,258
1,358
1,900
9,212
2,352
6,861
-18
6,843
FY17
3Q
25,859
16,329
9,530
4,186
13,716
3,658
1,318
2,340
10,058
2,555
7,502
13
7,515
4Q
29,314
17,391
11,923
2,935
14,858
5,160
1,136
4,024
9,698
1,325
8,373
32
8,405
Variation (%)
QoQ YoY
13
7
25
(30)
8
41
(14)
72
(4)
(48)
12
12
22
28
15
19
16
30
(1)
43
9
(36)
23
24
3,529
1,463
0.84
0.35
0.49
3,827
1,523
0.85
0.34
0.51
4,135
1,626
0.86
0.34
0.52
3,913
1,871
0.85
0.36
0.49
4,071
1,935
0.85
0.36
0.49
4,309
2,028
0.84
0.35
0.49
4,553
2,169
0.83
0.35
0.48
5,116
2,393
0.84
0.35
0.49
5,430
2,533
0.84
0.36
0.48
5,686
2,548
0.83
0.34
0.49
6,557
2,917
0.85
0.36
0.49
7,062
3,271
0.85
0.36
0.49
8
12
38
37
9.8
9.7
0.1
4.9
10.2
9.7
0.6
4.7
11.2
9.1
2.1
5.2
12.0
8.9
3.1
6.1
11.1
9.3
1.8
5.2
11.2
9.6
1.6
5.2
10.7
8.4
2.3
5.2
11.6
8.2
3.4
5.6
12.9
7.9
5.0
5.0
12.8
8.3
4.5
4.8
12.2
7.5
4.7
5.0
12.3
7.5
4.8
5.0
23.4
20.9
30.48
3.74
24.7
20.7
31.23
3.72
25.1
23.2
34.54
3.98
28.7
26.5
30.72
3.49
21.9
26.1
26.07
3.51
25.9
25.1
23.08
3.49
25.6
25.0
25.47
3.66
30.8
23.4
0.00
0.00
26.3
27.4
23.97
3.16
26.1
25.5
25.85
3.10
26.7
25.4
28.13
3.26
34.7
13.7
0.00
0.00
36,700 48,000 53,500 64,190 45,250 61,900 64,740 91,370 52,500 67,200 91,000 131,800
420,140 450,268 480,780 522,350 540,215 582,246 622,650 687,000 707,000 753,130 814,220 913,000
378,640 411,030 491,560 474,870 508,630 527,620 636,290 689,100 744,800 832,000 919,200 939,900
45
12
2
44
33
36
75
21
4
60
8
32
0
8
76
21
3
54
7
28
0
9
76
21
3
53
7
28
1
9
76
22
2
59
7
31
3
9
76
22
2
55
7
35
3
9
76
23
1
47
6
33
2
9
76
23
1
49
6
31
2
9
77
22
1
49
0
38
2
9
77
23
0
47
0
40
2
9
78
22
0
39
0
49
2
9
79
21
0
37
0
50
3
9
78
22
0
37
0
51
3
9
Source: Company, MOSL
24 April 2017
5

Indiabulls Housing Finance
Story in charts
Exhibit 4: Disb. growth of 44%+ YoY
Disbursement (INR b)
91
48 54
64
45
62 65
53
67
91
132
25
23
Exhibit 5: AUM growth at multi-quarter high at +33%
AUM (INR b)
AUM Gr. (%)
20 20
14
18
23
29 30
27 29
33
32 31
29 31
36 35 31 38 37
Source: Company, MOSL
Exhibit 6: AUM mix has been stable
Others
CV
Corporate
Mortgages
7 6 6 5 4 3 3 2 2 1 1 1 0 0 0 0
21 21 21 21 21 21 21 22 22 23 23 22 23 22 21 22
72 73 73 74 75 76 76 76 76 76 76 77 77 78 79 78
Exhibit 7: Bank borrowings will continue to decline
Sell Down (%)
ECB(%)
NCD (%)
CP (%)
Bank Loans (%)
30
8
62
32
8
60
28
7
54
28
7
53
31
7
59
35
7
55
33
6
47
31
6
49
38
0
49
40
0
47
49
0
39
50
0
37
51
0
37
Source: Company, MOSL
Source: Company, MOSL
Exhibit 8: Asset quality remains healthy
GNPA (%)
NNPA (%)
Exhibit 9: Net gearing (x) among lowest compared to peers
5.6 5.7
6.1 5.9 6.3
3.9
4.3
4.7 4.6 4.8
5.7
0.9 0.9 0.8 0.8 0.9 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.8 0.9 0.9
0.8 0.8
0.4 0.5
0.4 0.4 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.3 0.4 0.4
5.1 5.3 5.3
5.2
0.3 0.3
Source: Company, MOSL
Source: Company, MOSL
24 April 2017
6

Indiabulls Housing Finance
Exhibit 10: Financials: Valuation metrics
Rating
66
FY19E
Buy
Buy
Neutral
Buy
Buy
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Under Review
CMP
Mcap
EPS (INR)
P/E (x)
FY19E
8.3
19.3
11.8
21.5
13.4
19.9
12.4
13.9
16.2
5.1
6.6
23.0
23.2
BV (INR)
P/BV (x)
FY19E
0.98
3.42
1.75
3.21
2.45
3.21
1.20
1.56
2.14
0.61
0.71
2.11
3.78
RoA (%)
FY18E
1.23
1.81
0.90
1.78
1.78
1.87
1.03
0.72
0.94
0.69
0.54
1.92
1.24
FY19E
1.22
1.78
1.30
1.95
1.84
1.88
1.06
0.75
0.97
0.72
0.59
1.66
1.27
RoE (%)
FY18E
9.8
18.2
9.9
14.5
18.0
16.5
8.7
10.0
12.4
11.6
10.0
8.9
15.2
7.3
6.7
6.0
11.9
7.0
9.7
5.2
9.6
FY19E
10.5
19.0
15.7
16.0
19.7
17.3
10.1
11.7
14.0
12.5
11.3
9.6
17.4
9.3
8.3
9.2
14.8
10.5
13.0
6.1
10.6
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
IDFC Bk
FB
DCBB
JKBK
SIB
Equitas
RBL
Private Aggregate
SBIN (cons)*
Buy
286 34.0 16.9 23.3 14.9 10.7 243 262 1.04 0.95 0.36 0.45
PNB
Buy
156
5.1
12.4 16.6 12.5 9.4
191 205 0.81 0.76 0.36 0.43
BOI
Neutral
153
2.5
14.5 23.7 10.6 6.5
249 267 0.62 0.57 0.23 0.33
BOB
Buy
179
6.3
19.0 26.1 9.4
6.9
167 187 1.07 0.96 0.60 0.75
CBK
Neutral
328
2.7
35.9 57.6 9.1
5.7
525 569 0.63 0.58 0.31 0.43
UNBK
Neutral
160
1.7
30.5 45.3 5.2
3.5
328 368 0.49 0.43 0.45 0.59
OBC
Neutral
156
0.8
21.0 26.0 7.4
6.0
413 433 0.38 0.36 0.28 0.31
INBK
Buy
285
1.9
30.1 35.9 9.5
7.9
324 352 0.88 0.81 0.64 0.68
Public Aggregate
Banks Aggregate
HDFC*
Buy
1,531 36.8 38.4 43.2 22.6 17.9 225 283 3.85 2.72 1.78 1.83
LICHF
Buy
658
5.0
46.9 55.3 14.0 11.9 249 294 2.64 2.24 1.60 1.63
IHFL
Buy
1,007 6.5
84.4 102.7 11.9 9.8
316 358 3.19 2.81 3.13 3.00
GRHF
Neutral
387
2.2
10.3 12.5 37.7 30.9
37
44 10.53 8.74 2.49 2.49
REPCO
Buy
765
0.7
34.0 40.2 22.5 19.0 210 247 3.64 3.10 2.14 2.09
DEWH
Buy
417
2.0
36.7 42.7 11.4 9.8
278 311 1.50 1.34 1.37 1.31
Housing Finance
RECL
Neutral
205
6.3
35.0 40.4 5.9
5.1
196 227 1.05 0.90 3.10 3.12
POWF
Neutral
158
6.4
27.2 30.2 5.8
5.2
169 191 0.93 0.83 2.76 2.72
Infra Finance
SHTF
Buy
1,055 3.7
81.9 100.5 12.9 10.5 558 637 1.89 1.66 2.74 3.00
MMFS
Buy
343
3.0
10.9 14.1 31.3 24.3 117 125 2.92 2.73 1.34 1.50
BAF
Buy
1,270 10.4 47.5 64.0 26.8 19.9 207 261 6.15 4.86 3.59 3.66
SCUF
Buy
2,300 2.4 134.5 164.6 17.1 14.0 870 1,008 2.64 2.28 3.73 3.85
MUTH
Buy
395
2.5
34.5 40.0 11.5 9.9
182 207 2.17 1.91 4.11 4.12
SKSM
Neutral
786
1.6
42.8 55.1 18.4 14.3 243 298 3.23 2.64 4.58 4.18
Asset Finance
NBFC Aggregate
Financials
*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries
(INR) (USDb) FY18E FY19E FY18E
269 24.3 17.8 20.5 10.4
1,533 59.5 67.1 79.4 22.8
498 18.0 23.9 42.2 20.9
893 25.0 32.3 41.6 27.7
1,556 10.9 92.2 116.2 16.9
1,434 13.2 59.4 72.0 24.1
59
3.1
3.8
4.8 15.3
93
2.5
5.2
6.7 17.7
182
0.8
8.8 11.2 20.7
79
0.6
13.0 15.4 6.1
25
0.5
3.1
3.8
8.1
169
0.9
6.2
7.4 27.3
564
3.2
18.5 24.3 30.5
FY18E FY19E FY18E
158.0 172.4 1.17
387 448 3.96
250 285 1.99
238 278 3.75
542 635 2.87
385 447 3.72
45
49
1.30
54
60
1.71
75
85
2.43
117 129 0.67
32
35
0.78
73
80
2.32
130 149 4.35
18.1
20.3
28.3
30.6
17.5
13.9
19.1
17.0
15.5
9.6
25.5
16.5
20.2
19.3
17.1
20.3
30.5
30.9
17.6
14.5
19.1
16.8
16.7
11.6
27.3
17.5
20.6
20.4
24 April 2017
7

Indiabulls Housing Finance
Financials and valuations
Income Statement
Y/E March
Financing Income
Financing Charges
Net Financing income
Change (%)
Non interest Income
Net Income
Change (%)
Employee Cost
Other Operating Exp.
Operating profits
Change (%)
Total Provisions
% of operating profit
PBT
Tax
Tax Rate (%)
PAT
Change (%)
Minority Interest
PAT
Change (%)
Dividend (Including tax)
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Equity Net worth
Minority Interest
Borrowings
Change (%)
Deferred Tax Liability
Total Liabilities
Cash and bank balance
Investments
Change (%)
Loans
Change (%)
Net Current Assets
Net Fixed Assets
Total Assets
AUM Mix
Assets Under Management
Change (%)
On Books
% of AUM
Off books
% of AUM
E: MOSL Estimates
2014
51,865
32,824
19,041
14.4
7,181
26,222
20.4
2,637
1,470
22,115
24.4
2,297
10.4
19,818
4,133
20.9
15,685
23.9
44
15,642
24.3
11,298
2015
61,210
39,442
21,768
14.3
11,494
33,262
26.8
3,249
2,285
27,728
25.4
3,003
10.8
24,725
5,713
23.1
19,012
21.2
1
19,011
21.5
10,531
2016
78,418
49,714
28,704
31.9
13,837
42,541
27.9
4,131
2,053
36,357
31.1
5,069
13.9
31,289
7,760
24.8
23,529
23.8
81
23,448
23.3
21,459
2017
103,990
64,110
39,880
38.9
13,030
52,910
24.4
4,997
2,443
45,470
25.1
7,750
17.0
37,720
8,630
22.9
29,090
23.6
22
29,068
24.0
17,855
2018E
130,612
81,643
48,969
22.8
16,288
65,256
23.3
5,996
2,909
56,351
23.9
9,404
16.7
46,947
12,206
26.0
34,741
19.4
100
34,641
19.2
20,265
2019E
161,176
100,908
60,267
23.1
20,359
80,627
23.6
7,195
3,465
69,966
24.2
11,988
17.1
57,978
15,074
26.0
42,904
23.5
120
42,784
23.5
25,029
(INR Million)
2020E
198,972
123,372
75,599
25.4
25,449
101,049
25.3
8,634
4,130
88,284
26.2
15,048
17.0
73,236
19,041
26.0
54,195
26.3
140
54,055
26.3
31,622
2014
668
56,387
57,055
57,055
19
355,395
13.6
-1,848
410,622
44,190
29,470
27.7
354,446
15.1
-18,639
469
410,622
2015
711
65,606
66,317
66,317
20
474,874
33.6
-26
541,186
34,903
61,638
109.2
460,396
29.9
-16,978
541
541,186
2016
843
106,097
106,939
106,939
0
610,853
28.6
760
718,552
29,017
106,928
73.5
608,643
32.2
-27,393
686
718,552
2017
843
120,370
121,213
121,213
0
853,000
39.6
1,100
975,312
56,830
136,170
27.3
830,880
36.5
-50,472
900
974,980
2018E
843
134,746
135,589
135,589
0
1,090,880
27.9
1,100
1,227,568
64,270
163,404
20.0
1,059,107
27.5
-60,566
690
1,227,575
2019E
843
152,501
153,344
153,344
0
1,385,398
27.0
1,100
1,539,841
75,816
196,085
20.0
1,338,549
26.4
-72,679
1,407
1,539,849
2020E
843
174,934
175,776
175,776
0
1,737,953
25.4
1,100
1,914,829
93,275
235,302
20.0
1,671,109
24.8
-87,215
1,695
1,914,837
(%)
1,856,788
24.8
1,671,109
90.0
185,679
10.0
411,690
19.6
354,446
86.1
57,244
13.9
522,350
26.9
460,396
88.1
61,954
11.9
686,830
31.5
608,643
88.6
78,187
11.4
913,000
32.9
830,880
91.0
82,120
9.0
1,176,785
28.9
1,059,107
90.0
117,679
10.0
1,487,276
26.4
1,338,549
90.0
148,728
10.0
24 April 2017
8

Indiabulls Housing Finance
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield - on Fin. Portfolio
Avg Cost of funds
Interest Spread on on books
Net Interest Margin on AUM
Profitability Ratios (%)
RoE
RoA
RoA (on AUM)
Int. Expended/Int.Earned
Cost/Income Ratio
Empl. Cost/Op. Exps.
Asset quality
GNPA (%)
NNPA (%)
Valuations
Book Value (INR)
BV Growth (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
EPS Growth (%)
Price-Earnings (x)
DPS (INR)
Dividend Payout (%)
Dividend Yield (%)
E: MOSL Estimates
2014
13.1
10.1
3.0
5.0
2015
12.7
9.7
3.0
4.7
2016
12.6
9.2
3.4
4.7
2017
13.0
8.8
4.2
5.0
2018E
12.5
8.4
4.1
4.7
2019E
12.1
8.2
4.0
4.5
2020E
11.9
7.9
4.0
4.5
27.0
4.0
3.6
63.3
17.1
64.2
30.8
4.0
3.6
64.4
16.6
58.7
27.1
3.7
3.3
63.4
14.5
66.8
25.5
3.4
3.1
61.7
14.1
67.2
27.0
3.1
2.9
62.5
13.6
67.3
29.6
3.1
2.8
62.6
13.2
67.5
32.8
3.1
2.9
62.0
12.6
67.6
0.83
0.36
2014
170.8
3.3
5.9
170.8
5.9
46.8
16.3
21.5
29.0
61.7
2.9
0.85
0.36
2015
186.5
9.2
5.4
186.5
5.4
53.5
14.2
18.8
35
47.9
3.5
0.84
0.35
2016
253.8
36.1
4.0
253.8
4.0
55.7
4.1
18.1
45.0
76.0
4.5
0.80
0.40
2017
287.7
13.3
3.5
287.7
3.5
69.0
24.0
14.6
36.2
52.5
3.6
0.80
0.40
2018E
321.8
11.9
3.1
321.8
3.1
82.2
19.2
12.2
41.1
50.0
4.1
0.80
0.40
2019E
364.0
13.1
2.8
364.0
2.8
101.6
23.5
9.9
50.8
50.0
5.0
0.80
0.40
2020E
417.2
14.6
2.4
417.2
2.4
128.3
26.3
7.8
64.2
50.0
6.4
24 April 2017
9

Indiabulls Housing Finance
Corporate profile
Company description
Indiabulls Housing Finance (IHFL) is the fourth
largest housing finance company in India with
AUM of over INR900b as of FY17. It was
established as a wholly-owned subsidiary of
Indiabulls Financial Services (IBFSL). In early 2013,
keeping with IHFL’s long-term commitment to the
housing finance business, the company was
reversed-merged into its housing finance
subsidiary IHFL. IHFL offers home loans to target
client base of middle and upper-middle income
individuals and small and medium-sized
enterprises, or SMEs. It has presence across 200+
locations across India.
Exhibit 11: Shareholding pattern (%)
Dec-16
Promoter
DII
FII
Others
24.1
2.7
60.9
12.4
Sep-16
24.2
2.2
62.2
11.5
Dec-15
24.2
2.3
57.9
15.6
Exhibit 10: Sensex rebased
Exhibit 12: Top holders
Holder Name
EUROPACIFIC GROWTH FUND
MERRILL LYNCH MARKETS SINGAPORE PTE. LTD
MORGAN STANLEY MAURITIUS COMPANY LIMITED
TUPELO CONSULTANCY LLP
SMALLCAP WORLD FUND, INC
% Holding
6.2
3.5
3.3
2.2
1.8
Note: FII Includes depository receipts
Exhibit 13: Top management
Name
Sameer Gehlaut
Gagan Banga
Ashwini Kumar
Mukesh Garg
Pinank Shah
Ramnath Shenoy
Designation
Chairman
Vice Chairman and MD
Deputy Managing Director
Chief Financial Officer
Head Treasury
Executive Vice President, IR
Exhibit 14: Directors
Name
Sameer Gehlaut
Gagan Banga
Rajiv Rattan
Saurabh Kumar Mittal
Karan Singh Khera*
Ram Kumar Sheokand*
Prem Prakash Mirdha*
*Independent
Name
Shamsher Singh Ahlawat*
Aisharya Katoch
Joginder Singh Kataria
Ajit Kumar Mittal
Ashwini Omprakash Kumar
Kamalesh Shailesh Chandra Chakrabarty*
Exhibit 15: Auditors
Name
N D Kapur & Co
Jatin Gupta & Associates
Deloitte Haskins & Sells LLP
Type
Internal
Secretarial Audit
Statutory
Exhibit 16: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
FY19
MOSL
forecast
69.0
82.2
101.6
Consensus
forecast
67.3
80.7
94.9
Variation
(%)
2.5
1.9
7.1
24 April 2017
10

Indiabulls Housing Finance
NOTES
24 April 2017
11

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