Indiabulls Housing Finance rallied over 5 per cent early on Friday as the company reported a 30 per cent jump in net profit for the first quarter to June.
Profit stood at Rs 1,054.7 crore in April-June, driven by healthy loan growth.
The corresponding figure was Rs 809.5 crore in the same period last year.Its loan book rose 33.4 per cent to Rs 1,25,962.9 crore in the reporting quarter, from Rs 94,450.7 crore a year earlier.
Total disbursal grew 47.7 per cent YoY at Rs 10,044.2 crore.Net interest income (NII) was up by 22.1 per cent at Rs 1,690 crore, from Rs 1,400 crore in the year-ago quarter.Global brokerage firm CLSA maintained Buy rating on Indiabulls Housing Finance.
It also raised target price for the shares to Rs 1,700, from Rs 1,650 before.
Key positive was healthy growth in AUMs and QoQ expansion in spreads.
Healthy growth would drive compounding-led returns, CLSA said.
Macquarie also retained Outperform rating on Indiabulls Housing Finance with a target price of Rs 1,599.
Q1 net profit was in line with expectations.
AUM grew 33 per cent with retail loans growing more than two times the industry average.
Revaluation of stake in Oak North Bank under Ind-AS adds significantly to net worth and CET-1, Macquarie added.JP Morgan also retained Overweight stance on Indiabulls Housing Finance with a target price of Rs 1,600.
It believed that growth in FY19 should remain strong and sees no major stress build-up.