Star Housing Finance Shares Jump 9% After Strong Q1 2024 Results

Star Housing Finance’s share price saw a significant increase after announcing its Q1 2024 results. The stock opened at ₹52 per share and quickly rose to an intraday high of ₹54.97, marking a 9% increase. However, it couldn’t maintain this high and dropped to an intraday low of ₹50.51. Currently, the stock is trading around ₹52 per share.

Q1 2024 Results Overview:

• Business Growth: The company’s assets under management (AUM) grew by 73.55% year-on-year, reaching ₹471.41 crore. It disbursed ₹61.23 crore during the quarter.
• Income Increase: Interest income surged by 61.43% compared to the previous year, driven by strong loan disbursements. The net interest margin (NIM) stands at 7.04%.
• Asset Quality: The company’s portfolio at risk (PAR) over 0 days past due is at 3.38%. Gross non-performing assets (GNPA) are at 1.57% and net non-performing assets (NNPA) are at 1.12%.
• Profitability: Profit before tax (PAT) increased by 87.98% year-on-year.
• Liability Management: The company has strong relationships with banks and financial institutions, borrowing ₹335.35 crore from six banks and 11 financial institutions. It has a robust liability plan for the financial year.
• Dividend: A 50% increase in dividend payout has been announced, from ₹0.05 per share to ₹0.075 per share, pending shareholder approval.
• Technology Upgrade: Star HFL has upgraded its core lending suite for better home loan processing and receivable management.
• Ratings: The company is rated BBB/Stable by CARE and India Ratings.