Outperform Indiabulls Housing Finance Ltd., target Rs 932: Macquarie Capital Securities

Macquarie Capital Securities has an outperform call on Indiabulls Housing Finance Ltd. with a target price of Rs 932. The current market price of Indiabulls Housing Finance Ltd. is Rs 738.5. Time period given by analyst is year, when Indiabulls Housing Finance Ltd. price can reach defined target. While LAP yields have come off considerably in the past, but it will not converge to home loans, said the brokerage note. Macquarie is of the view that LAP spread over home loans will be sustained despite competition. Govt's latest move to exempt tax for affordable housing will improve supply quality. Macquarie is of the view that home loans will form 60 per cent of loan book by FY18E. The company continues to engage with CRISIL and ICRA for an upgrade to AAA. Indiabulls Housing Finance continues to see stable asset quality trends across LAP and home loan pools.