ICICI Securities has issued a buy rating on India Shelter Finance Corporation with a target price of ₹1,125 in its research report dated May 04, 2026. According to the brokerage's analysis, the company's Q4FY26 performance has reinforced their investment thesis, with Return on Equity (RoE) reaching 18% and sustained year-on-year growth of 29%, effectively addressing investor concerns about margin compression from competition and the sustainability of its >25% AUM growth trajectory.
While asset quality faced transient impact during H1FY26, Q4FY26 data confirms the impact was cyclical rather than structural, as reported by ICICI Securities. The same data justifies the management's proactive 14% year-on-year calibration in FY26 disbursements to navigate stress in small-ticket LAP and localised tariff uncertainties. Despite geopolitical headwinds from the West-Asia conflict, the combination of a low FY26 base, stabilising credit metrics in small-ticket LAP segments, and ample white-space could drive 30% year-on-year AUM growth in the near term, according to management projections.
ICICI Securities maintains its buy rating with an unchanged target price of ₹1,125, valuing India Shelter Finance Corporation at 3.2x March 2027E Book Value Per Share (BVPS). The brokerage's recommendation reflects confidence in the company's ability to navigate current market challenges while capitalising on growth opportunities in the small-ticket LAP segment.
