Kotak initiates coverage on India Shelter Finance with 'buy' on higher AUM than peers

Aptus Value Housing Finance India

28/03/2024 08:41

** Shares of India Shelter Finance Corporation  IDNI.NS  up
5.7% to 619.65 rupees 
    ** Kotak Institutional Equities initiates coverage on
housing finance co with "buy" rating, fair value of 685 rupees
        ** Expects co to deliver 35% AUM CAGR over FY2023-26,
higher than 22%-29% expected for peers including Aavas
Financiers  AVAS.NS , Aptus Housing  APTS.NS  and Home First
 HOME.NS  for the same period
  
    ** Adds, IDNI has strong potential for near-term growth,
driven by its presence in affordable housing finance and
geographically diversified loan book
    ** However, some risks include effective execution in new
geographies, maintaining strong asset quality performance,
managing a high fixed-rate loan book, potential repercussions of
rating downgrades
    ** IDNI has risen 9% YTD, compared with its peers, whose YTD
performances range between declines of 2.3% and 13.9%
 
 

 (Reporting by Navamya Ganesh Acharya in Bengaluru)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))