'Buy' India Shelter Finance Retains ICICI Securities, Sees 22% Upside — Here's Why

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ICICI Securities Report

India Shelter Finance Corporation Ltd., during its maiden Analyst Day, shared Vision 2030 – assets under management of Rs 300 billion by FY30, implying a more than 25% CAGR with RoE of >17%.

Superior execution of business strategies (~40% AUM CAGR and >50% PAT CAGR between FY2024) – since IPO, management has been able to deliver as per guidance despite a challenging operating environment in terms of MFI stress, tight liquidity etc. – is poised to continue going ahead.

End-to-end digital processes (lower TAT, better customer service), 40–45 branch additions each year, ticket size growing 7–8% and penetration in existing geographies (already present in 15 states, accounting for >90% of India’s mortgage market) shall driver AUM growth in coming years.

Retain Buy; target price of Rs 850 unchanged, valuing the company at 3.2x on Sep’25E book value per share.

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