20 years experience in construction supervision of high rise buildings and experience working as per government tender
Jaffrey & Fatima School for Mahuva
Need a security guard
Need for Mahuva petrol pump
Ladies – 2
Gents – 2
Salary 7000 to 9000
Progress is needed for the
Motor winding can do single phase
No experience required
For Sitaram Traders Center Mahuva
Staff required for office work
For marketing and sales
Gents or ladies
Study 12 pass or higher
Salary scale according to experience
things that I would like to point out. Number one, if you take a look at this range. Right. So what you will see is that up until 2020, almost 2019, there was a consistent increase in revenues. And I’m not just saying just simple increase in revenues, literally like exponential. Right. It has been doubling its revenues, which is very good. Right. What about profits? The profits are also doing very well, right.
It’s not as if there was some issue with the company per se till like 2018, 2019. There was no major issue with the company itself. The company knew how to generate sales, how to generate profits, and it was doing fairly well. Now, this got reflected into the stock price. Also. For example, if you take a look from here to here, there was a constant rise in share price. Right. Then you’ll see, Akshat, this looks like very scary.
It fell from here to here. This entire blue block, it fell, right. Then it rose a little bit again. Then it fell again. Right. This green block, then it has been moving sideways and then it fell again. Right. So it has been going up and down. So can you just help us decode why these things were happening? Okay, so here is a little bit of history around it. Why is it that India Bulls Housing Finance fell? So during this phase, this entire phase, there was ILnFS crisis, right. So this happened in roughly 2018, towards the end of 2018, 2019. And ILNFS was an NBFC, which was loaning out a lot of money to companies like India Bowls Housing Finance. There were a lot of accounting debt related problem with ilmfs. And as a result, all the housing finance company in India took a massive beating during this time.
So the stock price fell from roughly Rs1400 to roughly RS250. Right. So massive fall already happened during this. Like, now, what happened was that then we moved on to the COVID crisis in 2020. And the worst performing sector during COVID was with the housing sector. Right. It was probably the worst performing sector that the housing, real estate, financing, literally, no one wanted to buy a house at that stage in time,
it was impossible to go Scout for a location to begin with. Financing was a major problem. People were unfortunately losing family members, jobs, and a bunch of negative things were happening. So no one was buying house. And housing is a very cyclical type of a product. For example, in a downturn, the housing prices will just not grow for six, seven, eight years on a trot. Right. Word of the day, trot. So let me know, what does that mean? So during this entire phase, it went down even further. Right. Then what happened during mid 2020 to early 2021 that all the high debt companies, all the high debt companies were taking massive beating in the market. Again, I will show you the chart here. Here you can see that the cost of procuring capital for India Bulls Housing Finance.
They procure almost 41% of their funds through bond market. Now, people are not willing to invest in the bond market. So as a result, companies like India Boost Housing Finance, their cost of capital became really high. They had no other option but to explore other alternate forms of raising funds. And as a result, their cost of funding became expensive. This was a major drawdown for a company like Indiabulls Housing Finance. Then the story just did not end there. There were issues around corporate governance. There were issues with the promoters of the firm. There were issues with how they are going to repay their debt. Then there was downgrading issue. So literally all the issues that were to happen happened here. Right. That poor governance, quality of assets, downgrading of the company. A bunch of different, different things happened with India Bull Housing Finance. And as a result, in my opinion,
this stock has reached its bottom levels as of now. Right. And therefore, I’m saying that, hey, this is a value buying opportunity again, putting out a Disclaimer that you don’t need to go and invest. I’m investing. I have started taking little bit of positions and I might ramp up my positions in this stock i feel that this is a value buying opportunity, but you don’t necessarily need to agree with me. Okay. Now comes the next section where I’m going to discuss why do I feel that the situation is improving and why is it that this particular stock might bounce back from this point on? Now, there are three reasons why I feel that the stock might bounce