Strong Q1 fuelled rally

Star Housing Finance, which has been rising for the last seven sessions, gained momentum after the company announced its earnings report for the April-June quarter of 2022. The net profit of the company jumped multi-fold to ₹1.36 crore in the quarter ended June 30, 2022, as against ₹0.24 crore in the same period last year. Sales rose 16.05% to ₹4.99 crore in Q1FY23, compared with ₹4.30 crore the corresponding period last fiscal.

During the quarter under review, the company achieved the highest-ever quarterly disbursement of ₹22.56 crore, supported by expansion across operational geographies in the form of physical offices. The assets under management (AUM) stands at ₹116.32 crore with an annualised growth of 23% in Q1FY23, driven by co-lending tie-ups with Capital India Home Loans and Singularity Credit Pvt Ltd. Going forward, the housing finance firm aims to grow the assets under management (AUM) with a CAGR of 100% and a significant increase in the market cap of the company.

Speaking on the performance of the company, Ashish Jain, MD of Star HFL said, “Star HFL is now set to grow. This is validated by our business performance in Q1FY23 and the same getting translated in terms so financial numbers. We are happy to have registered action in terms of traction across locations, progress on funding, both debt and equity. We are continuing to invest in creating capacity including location expansion, manpower on-boarding and digitisation. We look forward to build-up and sustain the momentum of Q1 into the remaining quarters. We see our capacity getting utilised to the fullest through FY23.”

Jain further stated that the company will invest in technology to develop one-click digital lending capabilities. The firm will continue to strengthen the funding machinery through debt and equity and make the company ready for institutional equity from domestic or international markets, he added.

Star Housing Finance

This stock hits all-time high on robust Q1; more than doubles in 11 months