Indiabulls Financial services is going to be my next investment pick at current market levels. The balance sheet of Indiabulls look extremely interesting and forms an immediate buy from my side. If we are talking about how good banks are doing then why wouldn’t these finance companies do good? Indiabulls is looking extremely strong and I’ve entered this stock today from a 6-12 months perspective. We can surely see an upside of 60-70 rupees in medium term.

Indiabulls Finance posted revenues of 406cr (+18% YoY) and net profit of 128cr (+109% YoY) in Q1 FY11. Q2 FY11 looks even more interesting as they posted revenues of 484cr (+41% YoY) and net profit of 147cr (+137% YoY). These figures suggest that the company is doing extremely well this year and with similar kind of performance in coming quarters can surge this stock to new highs.

The current market capital of the stock stands at 6000cr and the earnings estimates for FY11 come close to 550cr. With that kind of bottomline in FY11 and maintaining a P/E of 15 can take the stock to atleast 30-40% on the upside from current levels of 194. Although if the stock drags more interest from investors, it can easily head to higher levels than the target I’m going to give. It will be interesting to see where the stock heads to in the next 1 year.

Buy Indiabulls Financial Services with targets of 260-275 in the next 6-8 months.

Related posts:

1. Buy Sona Koyo Stock
2. Buy Dena Bank Stock
3. Buy Corporation Bank