India Shelter share price jumps 5% after Kotak initiates coverage on stock with a buy call
BSE on Thursday, March 28, after brokerage firm Kotak Institutional Equities (Kotak Securities) initiated coverage on the stock with a buy recommendation. India Shelter share price opened at ₹608.65 against its previous close of ₹585.60 and soon rose about 5.7 per cent to hit the level of ₹618.75. Around 10:15 am, the stock traded 5.07 per cent higher at ₹615.30.
Kotak initiated coverage on the stock with a buy call, with a residual growth model-based fair value (target price) of ₹685, implying an upside potential of about 17 per cent. "We initiate coverage on India Shelter with a buy and residual growth model-based (RGM)-based fair value of ₹685 (18 times earnings and 2.4 times book FY2026E)," Kotak said. Also Read: ICICI Securities delisting gets nod from institutional investors despite retail resistance; shares fall 4% Kotak is optimistic about India Shelter Finance Corporation, a housing finance company that targets self-employed people in smaller cities.
The brokerage firm believes its quick expansion into new areas will keep its growth high in affordable housing finance. "India Shelter, with its small base, focus on self-employed individuals in tier-II and tier-III cities and rapid footprint expansion is well-placed for sustaining high growth (33 per cent) in affordable housing finance," Kotak said. "High yield in the self-employed/LAP (loan against property) segment drives strong RoAs (return on assets), despite higher (though improving) opex ratios; lower leverage constrains RoE (return on equity).
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