New Bull Eye Call : BUY/ Add More Indiabulls Housing Finance as

an Intelligent Speculation Call
* Note : This is the third time we are entering Indiabulls Housing Finance as our Bulls
Eye recommendation in addition to the stock being a Core-Long Term Portfolio bet.
Dear Members,
We have been Long Term Investors in Indiabulls Housing Finance stock for a long
time now. Our consistent monitoring of IBHFL stock has enabled us to predict the
medium term movements of the stock with a reasonable accuracy.
This understanding enabled us to make profits in the Stock through our Bulls Eye
recommendation twice before. We have been able to earn 50% returns on this stock
in the past 2 Intelligent Speculation calls. This along with our continued bullishness
on the long term prospects of the share gives us confidence to BUY this share at the
current juncture as an Intelligent Speculation call.

Key Positional Call details :Buy Price - CMP (Around 361 Rs/ Share).
Target for the Trade - 4250 Rs/ Share.
Time-Frame for the trade - 6 Months.
Allocation % - 4% of your Capital.
* There is no Stop-loss as we have enough confidence in the stock as a Long Term
investment and hence willing to HOLD through in case of deep corrections.

Core Speculation Thesis :Indiabulls Housing Finance is one of the most profitable housing finance companies in
the country. The stock is extremely cheap under any standards. We believe that the
recent Promoter Split is a key trigger for the future Re-Rating of the stock. We
have had two triggers previously in the form of Dividend Payout & Earnings Growth and
these along with the new trigger would accelerate the Re-Rating process. While its a
speculation, we believe that the downside in this Idea is limited to 20% - while the
upside can be as high as 50%. The Odds in this bet are surely in our favor.
Broader understanding of the Call :-

PTC India Finance) as Independent directors on board of IBHFL. The “Indiabulls” brand stays with IBHFL and the real estate company will continue to use the brand. Meanwhile. . shall continue to control the housing finance. (Rating agencies had been asking for such an Arrangement if they need to upgrade IBHFL from AA+ to AAA) .C. * Gagan Banga has been elevated as Vice-Chairman of IBHFL board. The average Entry price for Older members would be around 275 Rs/ Share. Major Highlights of today’s Con-Call : * There were two major triggers for the Split. Rattan would be in control of Indiabulls Infrastructure and Power Ltd. there will no dilution. Gov) & Mr. the Industrial brand and Consumer brand will be differentiated. Please find the major points.Improvement in Governance in each company. Indiabulls Securities Ltd and Indiabulls Wholesale Services Ltd. Rajiv Rattan and Saurabh Mittal. Gehlaut has relinquished his office as chairman and as a director of Indiabulls Power. We believe that today’s development is a significantly positive development for Long term Investors in Indiabulls housing finance. directors of these companies have relinquished all their control and resigned from posts held in Indiabulls Housing and Indiabulls Real Estate. * There has been realization of importance of de-linking Ownership from Management.Creating greater Share holder value through improved Focus on each business by a separate Promoter.RBI. .00. Indiabulls Real Estate Ltd. As with all the stocks that we track.000 Cr. The process of De-Classification of Promoters has started. we had been on Concall with the Management today. Governance levels would continue to improve going forward and initiatives such as these will continue. (Sameer’s 60% ownership in Indiabulls Power compared to 20% each of Saurabh & Rajiv would be given up for higher stake in IBHFL & Real Estate). the current Market price represents a 12 bagger for us. real estate. As a part of restructuring. securities and wholesale trading business segments of the group. “Rajiv Rattan and Saurabh Mittal shall not have any rights and or interests in Indiabulls brand”. K.We have an already existing residual stake in our previous Indiabulls Housing Finance Bulls Eye call. Chakraborty (Ex. * One point of improving Governance standards is appointing Dr. swap or anything in any of the group companies because of this agreement. leaving the business in the hands of Rajiv Rattan. With an effective share acquisition price of around 20 Rs/ Share. On our Initial purchase price of about 95 Rs on the stock. We have been a big beneficiary of the big discount the Market continues to give to the stock. The company continues to improve its Corporate Governance while Market still continues to penalize the company for its past actions. Improvement in the prospects of the Power business was a key link. We believe that the stock is still cheap at around 7X forward earnings and can deliver returns from both Earnings growth and Valuation Re-rating. * Disclaimer :. Sameer Gehlaut.In a filing to BSE. Older members can add on to their positions at the current price. Mittal has also resigned as director of Indiabulls Power Ltd. * Ring Fencing Indiabulls Housing Finance from other business will continue. we have already received over 75 Rs as Dividend Income. * There would be an Inter-se Promoter Transfer to help sort out the shareholding. Indiabulls group said the restructuring is effective from 9 July. * Gagan Banga stated that “Process of Institutionalization of Indiabulls Housing Finance” will continue to strengthen going forward. Our conviction on this Idea continues to improve with the Management taking the right decisions in the form of both better Governance practices as well as rational building up of Solid Business fundamentals. * In terms of Business. We believe that the current prices continue to be attractive and discounts the “Governance Deficit” than what the stock deserves. Dy. * On brand. * IBHFL continues to have a solid road map to grow at 26% CAGR for the next many years till it reaches 2. Malla (MD. headed by its flagship companies namely Indiabulls Housing Finance Ltd. * There is no timeline for this Promoter transfer.