Is Indiabulls Housing Finance a good stock to buy at the current levels?

Over the last one year the stock has corrected more than 70% so it is attractive in valuation terms and is available at a price not seen in a long time. The stock fell in sympathy with other NBFC and HFC stocks and is yet to recover. However, if you look at the business model of Indiabulls Housing, it has two distinct advantages. Firstly, it has a solid portfolio of developed and developing properties and being largely in commercial property, its annuity income is quite solid on these properties. Secondly, Indiabulls Housing Finance is not exactly the type of HFC with a very major problem of maturity mismatch. In the recent past, the stock has corrected sharply on the back of alleged wrongdoings. However, these allegations have since been withdrawn.

One thing that will favour Indiabulls Finance is its merger with Lakshmi Vilas Bank (LVB), which has just been approved by the CCI. This will give Indiabulls the banking license of LVB, its strong franchise in South India and also come under regulation of the RBI in a more full-fledged manner. All these factors should work in favour of Indiabulls Housing in the coming months. You can look at Indiabulls more from a medium to long term perspective than from a very short term point of view.