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Indiabulls Housing Finance tanks 13% post Q1 result

Shares of Indiabulls Housing Finance plunged over 13 per cent in trade on Thursday after it reported a 24 per cent fall in net profit at Rs 802 crore for the first quarter ended June 30. It had registered a net profit of Rs 1,055 crore in the corresponding period of the previous fiscal.

Global brokerage firm CLSA slashed the target price to Rs 670 from Rs 920 earlier. However, it retained ‘Buy’ call on Indiabulls Housing Finance.

“Weaker topline drives earnings cut but valuations are reasonable,” it said.

The company’s total income fell to Rs 3,886.12 crore during the June quarter as against Rs 4,071.32 crore in the year-ago period.

Morgan Stanley maintained ‘Underweight’ on Indiabulls Housing Finance with a target price of Rs 600. “Q1 saw higher bad loan recognition,” the global brokerage firm said.

During the quarter under review, Competition Commission of India approved the proposed scheme of amalgamation of the company and Indiabulls Commercial Credit Ltd into and with Lakshmi Vilas Bank.

The scheme is subject to receipt of approval from RBI and other regulatory approvals, it added in a release on Tuesday.

The company's main business is financing by way of loans for purchase or construction of residential houses, commercial real estate and certain other purposes.

The shares of the company closed 13.31 per cent lower at Rs 445.65 on BSE.
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