Business
ISFC offers home loans and loan against property (LAP) to salaried and self-employed people in tier-II and tier-III regions. It has 203 branches across 15 states. The lender’s loan book is concentrated in three states including Rajasthan, Maharashtra, and Madhya Pradesh which account for nearly 63% of the assets under management (AUM) and 58% of the branches.
Of the total AUM of ₹5,180.7 crore as of September 2023, the self-employed formed 71% while salaried individuals accounted for the rest. The average loan ticket size was ₹10 lakh. Home loan and LAP constituted 58.2% and 41.8% of the total disbursement of ₹1,220.3 crore as of September 2023. The economically weak section and low income category formed 22.1% and 49.3% of the AUM, respectively while the mid-income group accounted for 26.6%; the remaining 2% was the high-income group. Over 98% of the loans are sourced in-house. The company maintains a conservative loan-to-value proportion of 55.1% in the home loan category and 45.3% in the LAP segment.
Financials
Between FY21 and FY23, AUM grew by 40.8% annually to ₹4,359.4 crore. Revenue from operations increased by 35.9% to ₹584.5 crore while net profit rose by 33.3% to ₹155.3 crore during the period. The gross non-performing asset (GNPA) ratio fell to 1.1% in FY23 from 2.1% in the previous year. The return on asset (RoA) was 4.1% in FY23.Valuation
Considering the equity after the IPO, the company demands a price-book (P/B) of up to 2.4. Among larger home finance peers, Aavas Financiers, Aptus Value Housing Finance, and Home First Finance Company trade at a P/B of 3.4, 4.5 and 4.7 respectively.