DINESH

India Shelter Finance

Industry: HFCs
Latest CMP 671
Today's Change ▼ -0.51%
52-Week High / Low 940 | 643
Price Date: 14-Aug-2026
Recommendation Strong Buy
Target Price 1,330
Expected Upside 40.8%
Forecast Horizon 2 Years
Historical CAGR Not Available
1,000 Invested
Today's Value
Investment Period < 5 Years

Stock Snapshot

Post Results Return
-11.7%
Negative Re-rating
1-Year Target Price
1,117
2-Year Target Price
1,330
52-Week High / Low
940 / 643
20-Day Return
-17.7%
Market Cap (Cr.)
7,293
Current PE
15.7
P/BV Ratio
2.3
Dividend Yield
0.6%
Industry PE
15.2

Price Performance

Basis of our Recommendation

India Shelter Finance Corporation (ISFC) is navigating a complex landscape marked by operational resilience and strategic focus. Management's recent commentary highlights a commitment to achieving 25-30% AUM growth for FY27, supported by strong disbursement momentum in July. This aligns with Vista's forecast of moderated revenue growth, as ISFC adapts to a changing disbursement recognition policy. The company's focus on maintaining spreads above 6% and optimizing operational expenses through digital initiatives is expected to stabilize margins, which Vista anticipates will remain broadly stable. However, potential headwinds include geographic concentration and the risk of margin compression due to elevated borrowing costs. The affordable housing finance sector is expanding, driven by urbanization and rising income levels, which bodes well for ISFC's long-term growth. Over the next 12-24 months, key opportunities lie in geographic diversification and scaling co-lending partnerships, while watchpoints include asset quality stabilization and the impact of macroeconomic conditions on credit costs. Overall, Vista's outlook reflects a balanced view, with expected upside of approximately 41% and a target price of INR 905.82 for the next 12 months

👍 Why We Like This Stock

  • Management's confidence in achieving 25-30% AUM growth for FY27 supports Vista's revenue outlook
  • Focus on maintaining spreads above 6% and optimizing operational expenses is expected to stabilize margins
  • The expanding affordable housing finance sector presents significant long-term growth opportunities

Things To Watch Out For

  • Geographic concentration poses risks to growth and asset quality
  • Potential margin compression from elevated borrowing costs could impact profitability
  • Cautious investor sentiment may affect short-term trading performance

Key Parameters

Balance Sheet Strength
Weak Cash Conversion
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
Regular
FII Holdings
Stable

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 829 1,165 1,528 1,582 1,974
Profit Before Tax (Cr.) 319 489 653 884 1,127
PBT Margin 38.5% 42.0% 4273.6% 55.9% 57.1%
Net Profit (Cr.) 250 374 508 687 876
Earnings Per Share 23.0 34.4 46.7 63.2 80.5

Analyst Recommendations

Broker Recommendation Target Price Date
HDFC Securities ► Add 1,030 07-May-2026
ICICI Securities ▲ Buy 1,125 12-Aug-2026
IDBI Capital ▲ Buy 971 04-May-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 1,125
Coverage 3 Analysts
Analysts' Viewpoint
India Shelter Finance's focus on maintaining spreads above 6% and optimizing operational expenses through digital initiatives supports its growth strategy, targeting a long-term AUM of INR 300bn by 2030. The company demonstrates strong pricing power with incremental spreads reaching 7.0%. However, asset quality in the micro-loan segment and geographic concentration pose risks. Management anticipates asset quality improvements in H2FY27 and plans to accelerate branch expansion to achieve its AUM growth target.

Company Overview

Show Company Profile

India Shelter Finance Corporation Limited operates as a housing finance company in India. The company offers home, purchase and construction, and home renovation loans, as well as loans against property. It also provides secured retail home and home equity loans. The company was formerly known as Satyaprakash Housing Finance India Limited and changed its name to India Shelter Finance Corporation Limited in March 2010. India Shelter Finance Corporation Limited was incorporated in 1998 and is based in Gurugram, India.