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Indiabulls Housing jumps 1.5% on CRISIL ratings upgrade; Morgan Stanley upbeat

November 30
20:05 2017
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Indiabulls Housing Finance gained over 1.5 percent intraday on Thursday as investors cheered positive brokerage views on the stock.

Ratings agency Crisil upgraded the long-term rating of Indiabulls Housing Finance Limited (IBHFL), and its wholly owned subsidiary Indiabulls Commercial Credit Limited (ICCL), to the highest rating of AAA/stable”, from its earlier assigned rating of “AA+/positive”.

Further, it said that the company is the second private non-bank lender on standalone strength to be rated AAA by Crisil.

“In upgrading the rating, Crisil has factored continued healthy asset quality, robust capitalisation, strong profitability, healthy cover for asset-side risks, and sufficient liquidity,” the company said in a filing to the exchanges.

Global research firm Morgan Stanley maintained its equal weight on the stock with a target of Rs 1,250

It said that the CRISIL upgrade is a positive thing and this could result in narrowing of spread of bond borrowing cost.

In the near term, it expects the firm to outperform other financials. The firm has low preference for housing finance companies given higher sensitivity to rising bond yields and potential price competition from PSU banks

At 12:55 hrs Indiabulls Housing Finance was quoting at Rs 1,212.00, up Rs 7.05, or 0.59 percent, on the BSE. It touched an intraday high of Rs 1,223.75 and an intraday low of Rs 1,199.95.

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