Star Housing Finance share price rises 4% after Q4 results 2024 despite stock market sell-off

Stock market today: Despite the overall weak trends on Dalal Street, shares of Star Housing Finance Ltd stood out with a strong buying interest during Thursday deals. Star Housing Finance share price today opened on a positive note at ₹54.90 apiece on BSE and quickly surged to an intraday high of ₹56.80 within a few hours of the stock market's opening bell. This impressive climb marked a nearly 4 percent rise from Wednesday's close price of ₹54.66 apiece, showcasing the market strength of Star Housing Finance Ltd.

Star Housing Finance news

On Wednesday, the board of directors of Star Housing Finance Ltd announced the Q4 results 2024, which revealed the company's ability to maintain its growth trajectory in the retail home finance space. This consistent growth has translated into a robust business and financial performance for the fiscal year ending on March 31, 2024, providing reassurance to stakeholders and investors.

Here we list out key highlights of Star HFL Q4 results 2024:

Business Numbers: AUM increased 73.52% y-o-y to ₹426.86 crore. The Company disbursed ₹240.86 crore in the financial year.

Income Growth: Interest income grew by 66.82% y-o-y on the back of strong traction in disbursements during the year. Net Interest Margin (NIM) stands at 7.86%.

Asset Quality Remains Intact: Despite the challenging economic conditions, Star HFL has maintained a strong asset quality. PAR (0+ days past due) stood at 3.22%, of which GNPA stands at 1.50% and NNPA stands at 1.02% as of March 31, 2024, providing a sense of security to our stakeholders.

Robust Profitability: Profit Before Tax registered 43.10% y-o-y growth.

Network Expansion: Star HFL has significantly expanded its reach, particularly in the North with a presence in NCR. It now spans across its operational geographies with 24 physical offices and 9 digital PoPs. This expansion is supported by a team of 250+ housing finance professionals across geographies and business functions, demonstrating the company's commitment to growth and its potential for future expansion.

Equity Infusion: Star HFL has further fortified its capitalization level through a successful issuance of warrants amounting to Rs. 60 crs, subscribed by Family Office, HNI investors, and retail investors. This achievement, with 25% of the total warrant amount already received, instills confidence in the company's financial stability.

Rating Upgrade: During the last financial year Star HFL received a rating upgrade from CARE and is now rated as BBB/Stable by both rating partners viz: India Ratings and Care.

However, the housing finance company's liability also scaled up in the previous fiscal.

"Star HFL has raised incremental liability of Rs. 224.42 crs from 4 banks and 8 FIs including refinance lines from the NHB. Star HFL has strong relationships with Banks and FIs and has robust pipeline to aid the loan book growth. During the year, Star HFL has been able to diversify the liability program in terms of instruments and has issued NCDs subscribed by FIs," the company said in its Q4 resuls 2024 release.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.