Last Updated on: 29th December 2024, 03:25 am
Every one wants to find multibagger stock at an early stage,and in this edeavour one generally take clues from different sources.Mutual fund investment is one such source of clue.And in this its really very rare that we find a company in which eight wellknown Indian funds and a global giant fund house like Goldman Sachs simultaneously has invested.With so much interest of Indian and global MF investors ,this stock must have someting extraordinary in it.
What makes this company so special ? Lets check out in detail.
Investment Highlights:
Goldman Sachs acquired aproximately 742392 shares in the company at Rs.752.35 per share at a total cost of Rs.56 crore.This investment was done by Goldman Sachs through Goldman Sachs India Equity Portfolio.
Not only this ,SBI Life Insurance Company bought 6.7 lakh shares at a total value of Rs.50 crore and ICICI Prudential Life Insurance company purchased 7.70 lakhs shares @ 753 aggegating to Rs.57.93 crores.With this investment,the stake of Goldman Sachs in India Shelter Finance corp has increased to 1.78%, and SBI Life’s holding increased from 1.94% to 2.56 percent.
Mutual Funds participation.
Six mutual funds were having stake in the company as per data of september 2024 quarter ending. These are
| Sl | Name | Stake as on sept 2024 |
| 1 | Sbi Life | 4.13% |
| 2 | Axis Mutual fund Trustees Ltd | 2.55% |
| 3 | ICICI Prudential Life | 2.52% |
| 4 | Quant small cap fund | 2.89% |
| 5 | Nippon India Value fund | 1.94% |
| 6 | Franklin India Equity advantage fund | 1.58 |
| 7 | Tata Business cycle fund | 1.3% |
| 8 | Mirae Asset Multi Asset allocation fund | 1.08% |
About India Shelter Finance Corporation Ltd,:
India Shelter Finance Corporation Limited(ISFCL) is an affordable Housing Finance Company incorporated in 1998, and then it was acquired by the current investors in September 2009.The company mainly caters to underserved segment . The company primarily target customers from Tier 2 and Tier 3 cities across India.
It focuses on customers in the informal low and -middle income segment.
It has network of more than 200 branches which is spread across 15 States mainly in Rajasthan, Maharashtra, MP, Karnataka and Gujarat.
Borrowing :
As the company is into financing ,itsources it’s finance from ,Private Bank, public sector bank NHP refinance, Nonconvertible Debentures and Securitization.
Liquidity Position and Asset Quality:
As per report from ICRA,the company had free cash and bank balance and liquid investment of around 480 crore.
Company maintains strong asset quality with GNPA of 1.1% and NNPA of 0.9% as on 30th june, 2024.
Robust financial performance
Revenue growth: The company’s revenue grew from Rs.204 crores in Q2 FY24 to Rs. 282 crores in Q2 FY25 , a growth of 38.23 % year on year.
Profitability: Net profit grew i from Rs.60 crores in Q2fy 24 to Rs.90 in Q2fy25, registering a growth of 49.69 % yoy.
Key Financial Parameters.
| Market cap | Rs.7577 crores |
| CMP | Rs.704 |
| Yrly High /Low | Rs.799/521 |
| Stock PE | 24 |
| ROE | 14.0% |
| Book Value | Rs.232 cr |
| Face Value | Rs.5 |
| Promoter Holding | 48.14%(sept.24) |
| FIi | 5.77% |
| DII | 21.87% |
Why investors are excited .
Company has a strong financial,with stable liquidity position,healthy asset quality along with this, its focus on underserved segment which is generally not catered by other housing finance companies makes it stand out of the crowd.With a market cap of Rs.7500 crores (aprox) the company is at its nascent stage and has huge growth area which can be covered .Moreover the Board is experienced with Industry Veterans and the management is also experienced in the same industry ,most of them are from Cholamandalam.Probably all these factors have attracted investors attention,but only time will tell the story.
DISCLAIMER : Mint Mantra provides the articles and information gathered from other sites like company website and declaration to exchange and is for informational purpose only and this should not be construed as any advice for investment of any kind.The information provided here is for educational purpose only please verify the data before taking any decision based on them.Mintmantra nor its owner qill not be responsible for any loss whatsover incurred for any information contained herein.Readers are suggested to consult the qualified financial consultant before making any investment decisionThe brands and logo and pictures used are of their repective company or entity