The risk in IB housing is writeoffs of old loan book… Which market is factoring by giving discount to book value.
Considering the dividend stream has started, the recovery in IBHFL looks plausible
As per the filings and company guidance, the next two years roe etc looks conservative to me(i think its already factoring further writeoffs) , any bad hiccups can be severely punished though. They have not been fulfilling their name change dreams, been listening since 3 quarter concalls, but the name remains same.
Risk reward looks favourable at 120-100 per share, however the price has already gone up and hence any further jump from here will be linked to company performance. Dont expect a quick re-rating.
Disclaimer: invested with good allocation.
| Subscribe To Our Free Newsletter |
