Indostar is looking to raise funds in its housing finance subsidiary through primary/secondary route.
As of FY22, it had a net worth of Rs496 crore and in H1FY23 it generated a net profit of Rs29 crore. As there were no other changes in its equity, its H1FY23 net worth can, therefore, be estimated to be about Rs525 crore. The company seems to be on an expansion spree with the AUM up 34% y-o-y and GNPA and NNPA down to 1.4% and 1.1% in Q2FY23 from 3.1% and 2.4% in Q2FY22, respectively. Q2FY23 RoA was 4.4% compared to 2.6% in Q2FY22. Its Q2FY23 CRAR is 89.4%.
Aavas, Aptus and Home First currently trade at P/BV of 5.03x, 4.91x and 3.69x currently. If ICFL is able to raise funds for IHFL at 2x BV, that would be at a valuation of Rs1,050 crore. ICFL itself currently has a market cap of Rs1,841 crore. Any views?
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