Buy on Indiabulls Housing Finance with reduced 12-month target price at Rs 800: CLSA

CLSA maintains buy rating on Indiabulls Housing Finance post Q4 results but reduced its 12-month target price to Rs 800 from Rs 850 earlier.

The net profit was tad below estimate, and earnings growth was largely driven by 31 per cent growth in AUM, said the investment bank.

CLSA said that net interest income (NII) growth came in lower due to a higher non-core gain in base. The investment bank trimmed earnings by 2 per cent, but expect healthy 22 per cent CAGR in profit over FY16-18.