In today’s briefing:
- India Shelter Finance IPO – Strong Track Record Could Justify a Premium Valuation
- Indian Shelter Finance IPO- Forensic Analysis
- 2024 High Conviction Idea: IDFCBK IN: Best-In-Class Midsize Bank in India; Long-Term Performance
India Shelter Finance IPO – Strong Track Record Could Justify a Premium Valuation
- India Shelter Finance (0570670D IN) is looking to raise US$144m from its India IPO.
- India Shelter Finance (ISF) is a retail-focused HFC targeting the self-employed customer with a focus on first time home loan takers in the low and middle income group.
- In this note, we will look at past performance, and share our thoughts on valuation.
Indian Shelter Finance IPO- Forensic Analysis
- India Shelter Finance (0570670D IN) (ISFC) IPO worth INR 12 bn opens for subscription this week. The issue comprises INR 8 bn fresh issue and INR 4 bn OFS.
- ISFC has been generating high growth in AUM and disbursements in the last few years. The company has also improved its NPAs and stability.
- However, there are few cautions regarding employee productivity and on the opex side. Also, slippages have increased in H1F24.
2024 High Conviction Idea: IDFCBK IN: Best-In-Class Midsize Bank in India; Long-Term Performance
- IDFC First Bank Limited (IDFCBK IN) has built a banking franchise that holds the best promise among the mid-sized banks in India for long-run outperformance.
- A high-yielding and retail-oriented loan book, track record of pristine asset quality, superior funding profile boosting best-in-class retail deposit base, and incrementally improving unit economics.
- We value the stock as a long-term Buy, with 35% upside in near-term, as the bank continues to realize the benefits of its increasing scale on its earnings profile.
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