Target: ₹898
CMP: ₹770.40
India Shelter Finance is well positioned to drive growth in the affordable housing segment and the Loan Against Property (LAP) market. A key aspect of its strategy involves focusing on families, with women typically being the primary applicant on loan documents. This not only empowers women but also ensures strong repayment discipline as they take direct responsibility for the loan’s success.
The typical customer for India Shelter Finance is first-time borrowers with an annual income of ₹30,000 to ₹70,000. As of Q3 FY25, the company’s Assets Under Management (AUM) is ₹7,520 crore, which is smaller compared to larger industry players. However, with a strong AUM growth rate of 30-35%, India Shelter Finance is expected to capture a significant market share.
In Q3 FY25, India Shelter Finance showcased a diverse funding strategy, with private banks accounting for 41% of borrowings, followed closely by public banks at 37%.
Based on these factors – India Shelter Finance’s focus on underserved borrowers, low-risk loan structure, and robust distribution network – we maintain a bullish outlook on the stock with an FY27 Adjusted Book Value Per Share (ABVPS) of ₹328 and a Price to Adjusted Book (P/AB) multiple of 2.3x, positioning the company for steady growth.
