Target: ₹898
CMP: ₹770.40
India Shelter Finance is uniquely positioned to drive growth in the affordable housing segment and the Loan Against Property (LAP) market. A critical element of its strategy is the focus on families, where women typically serve as the main applicant on loan documents. This approach not only empowers women but also ensures strong repayment discipline as they assume direct responsibility for the success of the loan.
The typical customer profile for India Shelter Finance comprises first-time, borrowers with an annual income ranging between ₹30,000 and ₹70,000. As of Q3 FY25, India Shelter Finance’s AUM stands at ₹7,520 crore, which remains smaller than that of larger industry peers. Given that they have achieved strong AUM growth of 30-35 per cent we expect them to capture a large market share.
India Shelter demonstrates a diversified funding strategy in Q3 FY25, with private banks leading the way at 41 per cent of borrowings, followed closely by public banks at 37 per cent.
We continue to remain bullish on this stock with an FY27 ABVPS of ₹328 and P/AB multiple of 2.3x on the basis of these factors: India Shelter Finance’s focus on underserved borrowers, low-risk loan structure, and strong distribution network position it for steady growth.
