India Shelter Finance Corp. Ltd. (INDIASHLTR) AI Stock Analysis

• Market Cap: ₹75.63B
• Dividend Yield: 0.6%
• Average Volume (3M): 17.24K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.48
• Revenue Growth: 35.30%
• EPS Growth: 41.06%
• Country: IN
• Employees: 3,323
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 11.40
• Shares Outstanding: 108,715,750
• 10 Day Avg. Volume: 31,272
• 30 Day Avg. Volume: 17,240
• PEG Ratio: 0.71
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 9.07
• P/FCF Ratio: -6.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 45.57
• Revenue Forecast (FY): ₹10.78B

• Rating: 55 Neutral
• Price Target: ₹713.00 ▼(-9.20% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

The overall stock score reflects strong profitability and efficient operations, but is weighed down by declining revenue growth, high leverage, and negative cash flow, which pose significant risks. The technical indicators suggest a neutral trend, and the valuation appears fair, but the low dividend yield limits income potential.

Positive Factors

High Profitability / Margins

Very high reported gross and net margins indicate the firm converts lending spreads into earnings efficiently. Sustained margins support internal capital generation, help absorb credit costs, and underpin durable earnings power for a secured-lending franchise if asset quality is maintained.

Return on Equity

A ROE near 14% shows effective use of shareholder capital to produce returns. For a leveraged housing lender, this reflects profitable spreads and controlled operating costs, supporting capacity to reinvest in origination and deliver shareholder value over the medium term if risk controls persist.

Secured, Niche Business Model

Focused mortgage lending to low- and middle-income borrowers via branches targets a large, underpenetrated market. Collateralized loans reduce loss severity and a local origination footprint supports customer acquisition and retention, forming a durable competitive position in affordable housing finance.

Negative Factors

High Leverage

A debt-to-equity ratio of 1.83 indicates substantial leverage for a housing finance company. Elevated leverage amplifies sensitivity to interest-rate and funding shocks, constrains capital flexibility, and raises refinancing and regulatory capital risk over a multi-month horizon.

Negative Cash Flows / Liquidity

Persistently negative operating and free cash flows suggest reliance on external funding to sustain operations and growth. That dependence increases liquidity and refinancing risk, may raise funding costs, and limits the company's ability to self-fund loan growth or buffer credit deterioration.

Volatile / Declining Revenue Growth

A 12.6% revenue decline and noted volatility reduce scale and can pressure margins and provisioning coverage. Continued top-line contraction undermines economies of scale, increases per-loan operating costs, and complicates efforts to deleverage or build capital organically over the medium term.

India Shelter Finance Corp. Ltd. Business Overview & Revenue Model

Company Description

India Shelter Finance Corporation Limited, a housing finance company, provides home loans to low-middle income individuals in India. The company offers retail home loans, home equity loans, and loans against property. It also provides loans for home purchase, home improvements, home extension, and for construction of home. The company was formerly known as Satyaprakash Housing Finance India Limited and changed its name to India Shelter Finance Corporation Limited in March 2010. India Shelter Finance Corporation Limited was incorporated in 1998 and is based in Gurugram, India.

How the Company Makes Money

India Shelter Finance Corp. Ltd. primarily makes money through net interest income earned on its loan portfolio. It raises funds (liabilities) via borrowings and other funding sources at a cost of funds and lends these funds to customers as secured housing loans at a higher yield; the spread between interest income on loans and interest expense on borrowings (after considering funding mix and pricing) is the core driver of earnings. In addition to interest income, the company earns fee and other income linked to loan origination and servicing activities (for example, processing and documentation-related charges, and other permissible customer fees), and it may earn ancillary income associated with managing its loan book. Profitability is also influenced by credit costs (provisions and write-offs), operating efficiency (branch and employee costs relative to disbursements and assets), and the company’s ability to grow high-quality secured loans while maintaining stable funding relationships. Specific significant partnerships, named counterparties, or a quantified revenue split are not available in the provided prompt; therefore, null.

India Shelter Finance Corp. Ltd. Financial Statement Overview

Summary

India Shelter Finance Corp. Ltd. shows strong profitability with high profit margins, but faces challenges with declining revenue growth and high leverage. The negative cash flow situation is a significant concern, suggesting potential liquidity issues that need to be managed to ensure long-term sustainability.

Income Statement

The company has demonstrated strong profitability with a consistent gross profit margin of 100% in recent years. However, revenue growth has been volatile, with a significant decline of 12.6% in the latest year, following previous growth. Net profit margins have been healthy, averaging around 47.5% in the latest year, indicating effective cost management. The EBIT and EBITDA margins are also strong, suggesting efficient operations, though the recent revenue decline is a concern.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.83, indicating significant leverage, which could pose risks in a volatile market. However, the return on equity is solid at 13.95%, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing assets, but the high leverage remains a potential risk.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, which is concerning. The free cash flow to net income ratio is slightly above 1, indicating that free cash flow is just covering net income. However, the negative growth in free cash flow and the negative operating cash flow to net income ratio highlight potential liquidity issues that need addressing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.15B	9.99B	6.82B	4.97B	3.71B	2.66B
Gross Profit	6.43B	4.47B	2.40B	1.71B	1.36B	1.05B
EBITDA	6.28B	5.05B	3.31B	2.12B	1.74B	1.19B
Net Income	4.46B	3.78B	2.48B	1.55B	1.28B	873.89M
Balance Sheet
Total Assets	85.80B	77.48B	57.94B	42.96B	32.21B	24.63B
Cash, Cash Equivalents and Short-Term Investments	1.94B	3.43B	3.92B	5.17B	2.92B	4.14B
Total Debt	54.92B	49.69B	34.15B	29.89B	20.70B	14.91B
Total Liabilities	56.65B	50.39B	34.96B	30.55B	21.45B	15.25B
Stockholders Equity	29.15B	27.09B	22.99B	12.41B	10.76B	9.37B
Cash Flow
Free Cash Flow	-4.85B	-14.44B	-12.39B	-8.59B	-5.00B	-4.23B
Operating Cash Flow	-4.77B	-14.35B	-12.32B	-8.52B	-4.95B	-4.21B
Investing Cash Flow	-1.79B	-613.77M	-2.36B	1.62B	-1.86B	766.42M
Financing Cash Flow	4.80B	15.66B	12.20B	9.07B	5.92B	5.60B

India Shelter Finance Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 785.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDIASHLTR, the sentiment is Negative. The current price of 785.2 is above the 20-day moving average (MA) of 712.93, above the 50-day MA of 754.28, and below the 200-day MA of 853.38, indicating a bearish trend. The MACD of -18.85 indicates Negative momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDIASHLTR.

India Shelter Finance Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANFINHOME	73 Outperform	₹110.31B	11.69	―	1.37%	8.92%	12.32%
SHAREINDIA	68 Neutral	₹27.10B	10.29	―	0.68%	-25.37%	-48.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PAISALO	65 Neutral	₹31.48B	12.44	―	0.29%	11.75%	-6.52%
REPCOHOME	62 Neutral	₹22.64B	5.62	―	1.61%	8.10%	2.97%
INDIASHLTR	55 Neutral	₹75.63B	17.57	―	0.60%	35.30%	41.06%
CGCL	52 Neutral	₹163.37B	17.22	―	0.11%	43.41%	109.52%

India Shelter Finance Corp. Ltd. Corporate Events

India Shelter Finance Allots 42,700 Shares on ESOP Exercise, Marginally Ups Equity Base

India Shelter Finance Corporation Limited has allotted 42,700 equity shares with a face value of Rs. 5 each following the exercise of vested employee stock options under its 2021 and 2023 ESOP schemes. The company’s paid-up share capital has risen marginally to Rs. 54.38 crore, with the total number of equity shares increasing to 10,87,58,449, and the new shares will rank pari passu with existing stock as the firm proceeds with listing formalities.

The allotment underscores the company’s ongoing use of stock-based compensation to align employee interests with shareholder value while slightly diluting existing holdings. By expanding its equity base through ESOP exercises, India Shelter Finance reinforces its talent-retention strategy without materially altering its capital structure, signaling steady operational continuity to investors and other stakeholders.

India Shelter Finance Retains IND AA- Rating on Expanded Bank Facilities

India Shelter Finance Corporation Limited announced that India Ratings and Research has affirmed an IND AA-/Stable rating on existing bank loan facilities of Rs 10,000 million and assigned the same rating and outlook to an additional Rs 10,000 million in bank loan facilities. The reaffirmation and extension of the AA- rating underscore the company’s strong credit profile, supporting its ability to access bank funding on favorable terms and potentially enhancing its competitive position in the housing finance market.

The rating actions may reassure lenders and investors about the company’s financial stability and risk profile, reinforcing confidence in its borrowing program and growth plans. By maintaining a stable outlook on a sizable aggregate of bank facilities, the rating agency signals expectations of steady performance, which could help India Shelter Finance secure cost-efficient funding and sustain loan book expansion in a competitive sector.

India Shelter Finance Unveils Q3 and Nine-Month FY26 Investor Presentation

India Shelter Finance Corporation Limited has released an investor presentation detailing its unaudited financial results for the quarter and nine months ended December 31, 2025, in compliance with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements. The presentation, made available to exchanges and on the company’s website, is intended to update shareholders and market participants on its recent financial performance, reinforcing transparency and ongoing communication with capital-market stakeholders.

India Shelter Finance Grants 562,386 Stock Options Under ESOP 2025

India Shelter Finance Corporation Limited has granted 562,386 stock options with a face value of Rs 5 each to eligible employees under its Employee Stock Option Scheme 2025, as approved by the company’s Nomination and Remuneration Committee on 7 February 2026. The options, which cover an equivalent number of equity shares and are compliant with SEBI’s share-based employee benefit regulations, can be exercised within 5 years and 3 months from the date of first vesting, underscoring the company’s use of equity-linked incentives to retain and reward talent while potentially leading to future equity dilution once the options are exercised.

India Shelter Finance Clears Q3 FY25 Results, Okays Rs 1,000-Crore NCD Issue and Promoter Reclassification

India Shelter Finance Corporation Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, along with associated regulatory disclosures, including security cover, utilisation of proceeds, and any deviations in the use of funds from previously issued listed non-convertible securities. The board also cleared a plan to raise up to Rs 1,000 crore via non-convertible debentures through private placement or public issuance in one or more tranches, strengthening the company’s funding flexibility, and approved the reclassification of certain shareholders from the promoter/promoter group category to the public category, a move that could alter the company’s shareholding structure and free float in line with SEBI regulations.

India Shelter Finance Closes Trading Window Ahead of Q3 FY26 Results

India Shelter Finance Corporation Limited has announced the closure of its trading window for designated persons, their immediate relatives, and its subsidiary from January 1, 2026, until 48 hours after the unaudited financial results for the quarter ended December 31, 2025, are disseminated to the stock exchanges. The move, taken in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, is a standard compliance measure aimed at preventing insider trading ahead of financial disclosures, with the board meeting date for approving these results to be communicated later.