Recommendation from Finance Sector

This section gives a recommendation of a stock having stock price below Rs 150 with sound fundamentals and expected to give handsome returns over a one-year time horizon [EasyDNNnews:PaidContentStart]

Sammaan Capital Ltd : FROM LEGACY TO GROWTH

HERE IS WHY
✓  Legacy book shrinking steadily
✓  New book built on retail
✓  Secured mortgages driving growth

I ndia’s mortgage market now looks less like a steady lending business and more like a structural growth story. Low housing finance penetration, rising urban aspiration, improving affordability and a deeper push towards formal credit are expanding the opportunity. This is creating space for focused players to scale in a segment with plenty of runway left.

Sammaan Capital is a mortgage-focused NBFC seeking a second innings with a cleaner balance sheet, a sharper business mix and a stronger retail lending focus. Formerly known as Indiabulls Housing Finance, the company has moved away from its earlier image and is building around secured products such as home loans and loan-against-property. With assets under management (AUM) of ₹64,200 crore as of Q3FY26, stable asset quality and an expanding mortgage franchise, Sammaan Capital is positioning itself as a focused player where execution can matter as much as size.

On the asset side, the company’s book appears cleaner, more granular and aligned to future growth. As of Q3FY26, total AUM stood at ₹64,200 crore, of which the growth book accounted for ₹44,038 crore, or nearly 69 per cent, while legacy loans were down to ₹20,162 crore, or about 31 per cent. Put simply, the legacy book is the older Indiabullsera portfolio being run down, while the growth book is the newer Sammaan franchise being built up. Asset quality remained stable, with gross (GNPA) at 1.2 per cent and net (NNPA) at 0.7 per cent. In the retail mortgage mix, residential property accounts for 73.4 per cent, commercial property 20.5 per cent, under-Construction residential assets 4.5 per cent and residential plots 1.6 per cent. The legacy book is largely secured, with 89.8 per cent backed by residential property and other assets. Growth triggers are visible in the asset mix: a rising share of secured retail mortgages, granular exposure to self-employed and salaried borrowers, and asset-light scaling through co-lending, direct assignment and digital sourcing.

On the liability side, the company has repaired its balance sheet. As of Q3FY26 net worth stood at ₹22,423 crore, while debt remained at 2.2 times net worth. Liquidity stayed strong, with a liquidity coverage ratio (LCR) of 211 per cent against the regulatory requirement of 100 per cent, with assets and liabilities broadly matched. Borrowings declined from ₹1,10,257 crore in FY18 to ₹42,430 crore in FY25. A fresh trigger now sits in the Avenir deal. On March 31, 2026, Sammaan Capital approved the allotment of shares and warrants to Avenir, with ₹5,652.75 crore already received upfront. This should strengthen the capital base, improve liquidity headroom and support growth without stretching leverage.

Total income stood at ₹2,157.87 crore, up 6.9 per cent year-on-year, while profit before Tax came in at ₹419.07 crore, up 0.4 per cent, and profit after tax rose to ₹314.08 crore, up 3.8 per cent. For 9MFY26, profit after tax stood at ₹956.86 crore, reflecting improved earnings.

At around 0.6x price-to-book (P/B) versus an industry average of ~1.82x, Sammaan Capital appears fairly valued. The valuation still looks undemanding against improving asset quality, rising share of secured retail mortgages, stronger balance sheet and better liquidity profile. The ongoing shift from the legacy book to a cleaner growth book, along with asset-light expansion through co-lending and direct assignment, should support growth without putting undue pressure on leverage. The recent Avenir allotment adds to capital strength and financial flexibility. With return ratios likely to improve as the business mix turns more favourable, the stock offers a balanced risk-reward profile. We maintain a BUY view with a target price of ₹180.

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