Sammaan Capital - fighting to regain it's lost pride

Weekly stock chart of Sammaan Capital (formerly Indiabulls Housing Finance)

Sammaan Capital (formerly Indiabulls Housing Finance) has been another major underperformer stock over the last 5-6 years. Post the IL&FS crisis that surfaced in 2018 Indiabulls Housing Finance was in-a-way forced to shrink it's Balancesheet. It successfully managed to do it without a single default. Over the last 2-3 years, Sammaan Capital has seen significant changes, both on de-promoterisation front & change in it's business model to asset-light co-lending model. This transition is almost over now & we could see the NBFC report healthy growth in it's Loan Book & ultimately the Profits, from this fiscal onwards.

The share price too has spent most of the time under ₹200 level in the last 5.5 years, way off the peak of ₹1200+ level it saw in year 2018. As we can see from the weekly chart attached, the stock could face some resistance in the ₹140 to 160 zone. If it manages to break that zone anytime in the next couple of months, it could then get into a firm uptrend, in-line with the growth it could report on the business front.

Valuationwise too, Sammaan Capital trades at extremely attractive levels with a MCap of about ₹10K crs for a company reporting Qtrly Profits of little over ₹300 crs. If the company proves to be back firmly on the growth path, a significant valuation re-rating cannot be ruled out. It has been a game of ultra-patience for it's shareholders over the last 6-7 years & it will be interesting to see if it manages to reward handsomely over the next few years.

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