INDIABULLS - REVOLUTIONISING THE INDIAN EQUITY SPACE

India Bulls Financial, is a company that has grown phenomenally in the last few years. The rise of this company has been astounding and the pace of growth has been equally fast. From listing in 2004, the companys stock has jumped from the listng price of Rs 19, to almost Rs 1600-1800(with stock splits) at one point in time. The stock price has grown exponentially and kept pace with the companies performance of growths in profits.

The company has consistently posted profit growths QonQ, and last year clocked around 1600 cr, whereas five years back it stood at mere 69 cr. Quarter results for the company have also been encouraging with the sales lat quarter touching almost 600 cr. Going by the same rate of growth the co should end up easily above 2000 cr.

The company has diversified businesses in real estate, brokerage and other financial products (though all are sep listed entities). And the way the company has been expanding, it wont be surprising if the company becomes a very large conglomerate.
The current price of Indiabulls Financial services is hovering in the region of around of 330. With a forward earning of around 190cr, this quarter the EPS of the company comes to around 30. Going by that the company is trading at a forward PE of around 11 (assuming that there is no growth in the next 3 quarters). A PE of 11 for such a high growth company seems low. Also considering the rate of grwoth of the company that is >100% CAGR since inception, its a good buy at these levels. According to classical buffet theory any stock (even in the high grwoth sector)>12 PE should be avoided, this stock still fits the bill.

The technicals are not looking that bad too, though the stock is in a current downtrend, but the MACD has started receding thereby implying that the moment it is above zero the stock might be a good buy.