Indiabulls Housing Finance shifts focus back to fundamentals; stock up 11%

Incremental cost of funds was high at nearly 9 per cent, key financials also remained under pressure in Q3

The Indiabulls Housing Finance stock was among the top gainers on Thursday, rising nearly 11 per cent as the Ministry of Corporate Affairs clarified that there were no irregularities in deals closed by the lender. This certainly puts to rest some litigation surrounding the firm, though it also puts the onus back on an improvement in financials for the rally to sustain.

In the December quarter (Q3), net interest income fell 50 per cent and net profit 44 per cent over the year-ago period, indicating that operational conditions remained weak.

The question is how fast they can normalise, given its