Sammaan Capital Ltd. share price target

We interacted with the management of Sammaan Capital (SCL) to discuss the company's strategic transformation following the investment by Abu Dhabi-based International Holding Company (IHC) of INR88.5bn. Management highlighted that IHC currently holds 28.5% stake (to reach 43.5% post conversion of warrants over 18 months) and the investment marks a significant inflection point for SCL through enhanced capital position, governance oversight and funding access while also supporting digital and AI-led operational capabilities. FY26 AUM stood at INR531.6bn and the company is transitioning from a wholesale lender to a diversified retailoriented platform with a focus on secured lending. With legacy stressed assets written...

Indiabulls Housing Finance has recorded 24% dip in the net profit to Rs 801.53 crore for the quarter ended June 2019. The net interest income of the company dipped 13%, while net provisions jumped 128% causing decline in the net profit of the company in Q1FY2020. The company has witnessed marginal decline in the margins, while asset quality deteriorated. The net interest income of the company declined 13% to Rs 1475 crore in the quarter ended June 2019. The company has witnessed decline in spreads to 3.14% in Q1FY2020 from 3.23% in Q1FY2019, as cost of funds increased to 8.91% in Q1FY2020 from 7.92% in Q1FY2019. The yield on loans also increased to 12.05% in Q1FY2020 from 11.15% in Q1FY2019....

PAT of INR8.0b was 3% below our estimates. The marginal miss was on account of slightly higher credit costs and taxes. Disbursements were steady at 4QFY19 levels of ~INR75b. During the quarter, the company focused on reducing its commercial real estate (CRE) exposure due to the impending LVB merger. It got INR60b of CRE loans refinanced. As a result, overall AUM declined 6% QoQ/ 10% YoY to INR1.13t. Management targets to step up disbursements to INR100b, 2QFY20 onwards. Spreads declined ~20bp YoY to 3.12%, largely due to 100bp rise in cost of...

The net interest income of the company improved 6% to Rs 1591 crore in the quarter ended March 2019. The GNPA ratio as well as NNPA showed marginal increase for Q4FY2019, but remained under control at end March 2019. The company has improved spreads to 3.42% in Q4FY2019 from 3.11% in Q4FY2018, as yield on loans jumped to 12.15% in Q4FY2019 from 10.86% in Q4FY2018. The company has also...

After a sluggish 3Q, the company stepped up its disbursements in 4QFY19 to INR73b. However, AUM declined 3% QoQ to INR1.2t due to high repayments. With sufficient balance sheet liquidity, IHFL is well set to revert to its normalized disbursement run-rate of INR100b per quarter in FY20. Management reiterated its target of 20% AUM growth, 10% balance sheet growth, and high-teens PAT growth in FY20. On a calculated basis, core margins (excluding assignment and investment...

Indiabulls Housing Finance (IHFL) and Lakshmi Vilas Bank (LVB) have announced amalgamation, setting the stage for another NBFC (HFC) marriage with a bank. For LVB shareholders, for every 100 shares, they will get 14 shares of IHFL. This implies a 36%premium to the closing price of LVB as of 5th Apr'19 and ~63% premium to the last sixmonths' average price. The scheme of arrangement would lead to a 10.5% dilution. The deal is subject to all regulatory/shareholder approvals (RBI's approval remains the most significant one and will involve multiple considerations). If all approvals come,deal could get consumed in 3 quarters.

Unlike most of the HFCs, the share of IndiaBulls Housing has fallen dramatically from levels of Rs 1400. The fall has largely been on account of the IL&FS; wreck and also on account of the worries surrounding DHFL. Though, India Bulls has often clarified it stating that its liquidity position continues to remain sound (as closed with cash of 21000cr in Q3FY19) and has performed well during the quarter. It has significantly bought down reliance on 3-month CP in the process, thereby ensuring a well matched ALM and durability of liquidity levels. It now counts 21 strong banking relationships - 16 with PSU banks and 5 with private and foreign banks amongst its securitization investors. India bulls has guided the loan growth of 20-25%, Pat growth at...

1 February 2019 PAT declined 15% YoY (-6% QoQ) to INR9.9b (3% miss) in a quarter characterized by tepid loan growth and stable asset quality. Management adopted a cautious stance on disbursements, which were at INR39b. AUM grew 16% YoY to INR1.24t. However, Management guided for 20-25% of AUM growth and 10-15% balance sheet growth over the near term. Incrementally, loan assignments will be a key source of generating and maintaining balance sheet liquidity. IHFL reduced its exposure to sub-3 month CPs it was down from 12% to 3% YoY. Management targets to limit its share to 5% of total borrowings. Asset quality was stable, with stage 3 loans at 79bp and coverage ratio of 25%. In addition, the Palais Royale project, which is an NPL, has witnessed initial signs of recovery IHFL received INR2b in Jan19 and expects a similar amount annually over the next four years.

The loan portfolio of the company increased at strong pace of 29% to Rs 128908 crore at end September 2018 over September 2017. The sold down portfolio stood at Rs 14000 crore at end September 2018, showing an increase of 36% over September 2017. The share of mortgage loans increased to 80% at end September 2018 from 78% at end September 2017. On the other hand, the share of corporate mortgage eased to 20% at end...

16 October 2018 Indiabulls Housing Finance's (IHFL) PAT grew 21% YoY (-1% QoQ) to INR10.4b (3% miss) in a quarter characterized by robust loan growth, some margin pressure and stable asset quality. AUM increased 29% YoY to INR1.29t, driven by disbursement growth of 23% YoY to INR110b. guided to 20% YoY AUM growth for FY19, our AUM growth estimate for FY19 is 16% YoY given the fact that AUM has grown only 5% over Mar-Sep 2018. Total income growth came in at 10% YoY the slowest in the past several quarters due to the 34% YoY increase in interest expense. Asset quality was largely stable, with stage 3 loans at 77bp and coverage ratio on the same at 25%. The focus on core mortgage loans and market share gains should drive AUM CAGR of 17% over the next three years. Asset quality trend is likely to remain stable.

Indiabulls Housing Finance Ltd Q2FY19 results Comment Operating Income rose by 2.32% to Rs. 3980.39 Cr in Q2FY19 when compared to the previous quarter. Also, it grew by 26.13% when compared with Q2FY18.

3 August 2018 Indiabulls Housing Finance's (IHFL) PAT grew (under IND AS) 30% YoY to INR10.5b on back of 33% YoY growth in loans. While operating profits grew 18% YoY to INR14.6b, lower provisioning requirement under IND AS led to PBT growth of 32% YoY. Asset quality was stable QOQ with GNPA % at 78bp. Company reported gross stage loans of INR9.8b and coverage ratio on the same stood at 25% (flat YoY). For the first two stages provisioning requirement stood at 26bp of loans (based on historical evidence). Credit costs are guided to reduce to 25bp from 70-80bp earlier as home loans proportion increases and no floating provision concept under IND AS. Spread on loans improved 12bps QOQ to 3.23% led by 29bps QoQ rise in yield on loans vs 17bp QoQ rise in cost of funds. Incremental spreads on loans were flat at 2.8% Tax rate was at 25% for the quarter.

Indiabulls Housing Finance Ltd.'s profit for the quarter ended March matched analyst estimates even as it increased provisioning for bad loans. Indiabulls Housing Finance has continued to post strong growth in profitability, recording healthy 23% jump in the net profit to Rs 1030.37 crore for the quarter ended March 2018. The company has exhibited acceleration in loan growth to 34%, while maintained stable asset quality. The company has further improved cost-to-income ratio to 12.5% in FY2018 from 13.3% in FY2017. However, the margins have eased marginally in Q4FY2018. The net interest income of the company improved 22% to Rs 1661 crore in the quarter ended...

Operating Income rose by 10.17% to Rs. 3689.72 Cr in Q4FY18 when compared to the previous quarter. Indiabulls Housing Finance Ltd Q4FY18 results Comment

Indiabulls Housing Finance's (IHFL) core operating performance wasro bust. AUM grew strongly by 34% YoY to INR1.23t v/s our expectation of INR1.17t. A decline in reported spreads (-13bp YoY), an increase in leverage, and moderation in liquid money-related income led to 22% NII growth. Tax rate was at 18% for the quarter. Disbursements for the quarter were up 30% YoY to INR195b, driven by50%+ YoY growth in core home loans. This drove 34% AUM growth. Management cited strong traction in affordable housing finance. We expect IHFL to continue delivering 25-30% AUM growth over the medium term. Loan mix and borrowing mix both were steady. Yield on loans was down~80bp YoY, while CoF was down ~65bp. IHFL increas edits PLR by 20bp on 1st April 2018. Hence, we expect the impact of rising GSec yields to be somewhat mitigated.

Indiabulls Housing Finance's (IHFL) core operating performance was robust,with strong AUM growth (+32% YoY) and stable reported spreads. We note of a one-time gain of INR7.68b due to the sale of 10% stake in Oak NorthBank to GIC, Singapore. AUM growth was in line with trend at 32% YoY to reach INR1.1t. This was driven by 43% YoY growth in disbursements to INR130b. Management is bullish on supply pick-up in the affordable housing space. Despite competitive pressures, IHFL managed to hold reported spreads steady at 3.22% (vs. 3.25% in 2QFY18). Management continues to guide for book spreads of 3-3.25%. Incremental cost of funds is around 7.5%

Indiabulls Housing Finance's (IHFL) PAT grew 26% YoY to INR8.6b (4% above our estimate). Core operating performance was robust, with strong AUM growth (+33% YoY) and stable spreads. However, other income (income from the liquid investment book) remains subdued due to lower incremental yields. Note that IHFL had generated a good spread on its investment book above cost of funds in FY16 and FY17 - that is beginning to vanish now. AUM growth was in line with trend at 33% YoY to reach INR1t. This was driven by 36% YoY growth in disbursements to INR95b. Management is bullish on...

Operating Income grew by 11.84% to Rs. 2812.49 Cr in Q4FY17 when compared to the previous quarter. Also, it rose by 23.76% when compared with Q4FY16.

and diversifying its funding mix to reduce funding costs. In its quest for growth, it has continued to maintain adequate liquidity and adhere to prudent risk management policies for assets under...