India Shelter Finance Corporation Limited

Financial Services — Mortgage Finance · NSE

₹619.00−₹5.75 (−0.92%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of India Shelter Finance Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

India Shelter Finance Corporation Limited operates as a housing finance company in India. The company offers home, purchase and construction, and home renovation loans, as well as loans against property. It also provides secured retail home and home equity loans.

IndustryMortgage Finance

SectorFinancial Services

Employees4,800

Annual revenue₹1,300 Cr

How does it make money?

Turns over ₹1,300 Cr a year. Of every ₹100 of sales, about ₹39 reaches shareholders as profit, with ₹43 left at the operating level before interest, tax and depreciation. Each of its 4,800 employees supports ₹27.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹27.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 21.7% and earnings to grow about 21.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+21.7%

Est. earnings growth+21.9%

Analysts6

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +162% while net margin moved +24% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+162%

Margin effect+24%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.01 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

80/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

78/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.0x

3Y Median

27.8x

36 monthly readings · mean 29.5x · range 13.8x–51.8x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 53% below its 3y median of 27.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 23% below the peer median of 17.0x.

vs. its own history

Cheap

27.8x median over 36 months · -53%

vs. sector peers

Cheap

17.0x median of 4 peers · -23%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

23.1x

PEG

0.27

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 35.4% to 42.8% over 3 years.
Return on equity is rising
ROE has improved from 12.5% to 15.7%.
Return on capital is rising
ROCE has improved from 5.8% to 8.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 35.4% to 42.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 53% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 28% a year✓ 37.8% CAGR
Latest reported year was 21.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 41%✓ 42.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 14%✓ 15.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 27.8x✓ 13.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹6,759 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.0x

Cheap

Cheap against the generic band

P/B Ratio

2.11x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹47.53

Profitable

Profitable on a per-share basis

ROE

15.7%

Strong

Strong capital efficiency

ROCE

8.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.95x

High

High leverage

Revenue Growth (YoY)

21.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.62%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1,196 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

8.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

62.2%

Good

Healthy core-business profitability

Net Margin

48.0%

Good

Strong bottom-line conversion

Current Ratio

1.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

645.0 / 657.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹497 Cr	₹682 Cr	₹999 Cr	₹1,300 Cr	+37.8%
EBITDA	₹176 Cr	₹261 Cr	₹424 Cr	₹557 Cr	+46.9%
EBITDA Margin	35.4%	38.3%	42.4%	42.8%	—
PAT (Net Profit)	₹155 Cr	₹248 Cr	₹378 Cr	₹503 Cr	+48.0%
EPS	₹14.51	₹25.18	₹33.93	₹44.96	+45.8%
ROE	12.5%	10.8%	14.0%	15.7%	—
ROCE	5.8%	6.5%	7.5%	8.1%	—
Total Debt	₹2,989 Cr	₹3,415 Cr	₹4,969 Cr	₹6,246 Cr	+27.8%
Free Cash Flow	-₹859 Cr	-₹1,239 Cr	-₹1,444 Cr	-₹1,196 Cr	—

🟢 Revenue has grown at 37.8% a year over 3 years.

🟢 EBITDA has grown at 46.9% a year over 3 years.

🟢 EBITDA Margin has risen from 35.4% to 42.8% over 3 years (+7.4 pts).

🟢 PAT (Net Profit) has grown at 48.0% a year over 3 years.

🟢 EPS has grown at 45.8% a year over 3 years.

🟢 ROE has risen from 12.5% to 15.7% over 3 years (+3.2 pts).

🟢 ROCE has risen from 5.8% to 8.1% over 3 years (+2.3 pts).

🔴 Total Debt has grown at 27.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,615 Cr

Total Liabilities

₹6,417 Cr

Cash & Equivalents

₹129 Cr

Operating Cash Flow

-₹1,185 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

54.6%

Insider Holding

28.5%

Corporate Actions

Dividend Rate

₹10

Ex-Dividend Date

19 Jun 2026

Analyst Consensus

Recommendations

9 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹940.33

+51.9% vs CMP

Target Range

₹796 – ₹1,152

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive2 mixed3 general

India Shelter Finance Low-Streak Analysis and Stock View

Univest, 16 Oct

India Shelter Finance Corporation Ltd Dividend History, Yield & Record Date

INDmoney, 09 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

India Shelter Finance Corporation Ltd is Rated Sell

MarketsMojo, 15 Oct

India Shelter Finance Corporation Limited (NSE:INDIASHLTR) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Simply Wall Street, 06 MayAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

INDIASHLTR Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

India Shelter Finance targets ₹30,000 Crore AUM by 2030 with 30% yearly growth

Sahi, 22 Jun

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 4 tripwires holding · see Key things to watch ↑