India Shelter down 6.8% after 7.5 mn shares change hands

The run on the housing finance company's stock came after around 7.5 million shares changed hands on the counter

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Shares of India Shelter Finance Corporation, an affordable housing finance company, slipped as much as 6.8 per cent on Monday, September 16, and registered an intraday low of Rs 725.35 per share, after multiple large deals on the counter dragged the company's stock.

At around 11:16 AM, shares of India Shelter Finance were down 7.81 per cent or Rs 61.85 at Rs 730 per share, while BSE Sensex, at around the same time, was trading 80.87 points higher at 82,972.

In morning deals, around 7.5 million shares had changed hands on the Bombay Stock Exchange. The official buyers and sellers of the transactions could not be ascertained yet. As per reports, a large venture capital fund was the likely seller in the transactions.

India Shelter Finance Corporation Q1FY25 results

India Shelter Finance Corporation reported a 77 per cent year-on-year growth in profit after tax (PAT) to Rs 84 crore in the three months ended June 2024, compared to the Rs 47 crore PAT it had reported in the year-ago period.

The company logged a 37 per cent year-on-year (Y-o-Y) increase in Assets Under Management (AUM) to Rs 6,509 crore in the April-June quarter of the current financial year (FY25), from Rs 4,759 crore in the year-ago period.

ICICI Securities on June 2, 2024, had initiated coverage on the stock with a 'Buy' call for a target price of Rs 800. The brokerage stated that a higher proportion of the company's loans against property (LAP) portfolio (40 per cent of AUM) was resulting in better spreads for it, when compared to peers.

Additionally, levers for the cost of fund reduction, 70 per cent fixed rate loans (dual advantage of low balance transfer out and better yields during downward interest rate cycle), and steady growth of more than 30 per cent over FY24–26E, would help the company sustain better profitability than peers.

Since its listing, shares of India Shelter Finance Corporation have gained 45.69 per cent, as compared to the BSE Sensex's rise of 17.5 per cent during the same period.

India Shelter Finance Corporation's shares were listed on the BSE and NSE on December 20, 2023. 

The company operates in the affordable housing finance segment, and specialises in rural, tier II, and tier III regions. 

India Shelter Finance was incorporated in 1998 and offers loans for home construction, renovation, extension, and the purchase of new homes or plots.