Buy IndiaBulls Fin Services
Indiabulls Fin Services
Research: Motilal Oswal
Rating: Buy
CMP: Rs 779
Motial Oswal reiterates its ‘buy’ rating on Indiabulls Financial Services with a revised target price of Rs 1,086. In its first quarter post-demerger, Indiabulls reported 270% y-o-y and 57% q-o-q growth in loan book to Rs 8,800 crore in Q3 FY08. Disbursements, at Rs 3,300 crore, were the highest ever in any quarter. Though yields declined to 21% due to an increase in secured loans, earnings grew 80% y-o-y. Post the impressive Q3 FY08 numbers, Motilal Oswal is raising its estimates on disbursements and loan book for FY09 and FY10. Indiabulls may disburse loans worth Rs 10,500 crore in FY08, which will increase to Rs 26,000 crore in FY10.
