634733728782448750_gruh housing finance ltd

7/31/2019 634733728782448750_gruh Housing Finance Ltd.

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GRUH HOUSING FINANCE LTD.

Vikson Research

PAGE: 1


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Price (Rs) 656.6

52 W

H/L(Rs)

Lat. P/E 19.32

Lat.

EPS(Rs)

Mkt. Cap.(Rs

Cr) 2322

Lat.Eqty (Rs

Cr)

Lat. BV(Rs) 108.86

Div. Yield

(%)

Lat. Face

Value 10 Beta-Sensex

MARKET DATA (AS ON 18 MAY

We initiate a buy rating as on

2012 @ Rs 656.60 first target

target 1000 time frame 6 mont

18%

2%

2%

61%

17%

HOLDING PATTERN

FO

INS

NO

PR

PU

Price Vs Se

751.90 /

340.00

33.97

35.43

1.7

0.5018

2012)

18 May

24 & 2nd

hs.

Holder S

Foreign 6

Institutions

Govt Holding

Non Promoter

Corp. Hold.

Promoters 21

Public & Others 6

Totals 35

Shareholdi

GEIN

ITUTIONS

N PROMOTER

MOTERS

LIC & OTHERS

sex Chart

ares (%)

478600 18.35

735406 2.08

0 0

736885 2.09

307785 60.36

043962 17.12

302638 100

ng Pattern

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Gruh Finance is engaged in providing loans for purchase and construction of residential houses.

Gruh Finance is a subsidiary of housing finance major HDFC, which holds 60.36% stake in the firm

(as per the shareholding pattern on 31 March 2012).

Gruh Finance Ltd (formerly known as Gujarat Rural Housing Finance Corporation) was

incorporated in 1986 to provide financial services mainly for rural housing,

construction/upgradation of dwelling units, and to developers.

The company came out with an FCD issue in 1994-95, which was oversubscribed. Keeping in view

the competitive environment and the emerging challenges, the company has introduced new

loan products like site finance and loans for non-residential premises. It also plans to finance lan

development projects.

Also, during the year 1999-2000, GRUH opened four new retail office in Amravati, Chandrapur,

Modasa and Palanpur and three service centres - one in Pune and two in Surat and hence total

retail network now consists of 28 offices - 17 in Gujarat and 11 in Maharashtra. Due to the stiff

competition, the company has introduced three-tier pricing strategy linked to the duration of th

loan. The company was the first HFC to re-introduce the 20 year home loan product in the

market.

During the year 2000-01, Housing Development Finance Corporation Ltd., (HDFC) the largest

shareholder of the company acquired 68,90,000 equity shares from Gujarat Ambuja Cements

Ltd.,(GACL) in July 2000. As a result, HDFC's shareholding in GRUH currently stands 54.49% and

therefore it is a subsidiary of HDFC. Under the Golden Jubilee Rural Housing Finance Scheme of

the Government of India, GRUH has financed 4,891 dwelling units registering a growth of 35%

over the previous year.

COMPANY BACKGROUND


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Remark

Full Year

201203

Full Year

201103

VAR [%]

FullYear

Full Year

201103

Full Year

201003 VAR [%] FullYear Full Year 201003 Full Year 200903

VAR [%

FullYea

Gross Sales 513.91 361.07 42.3 361.07 275.82 30.9 275.82 261.81 5.4

Excise Duty 0 0 0 0 0 0 0 0 0

Net Sales 513.91 361.07 42.3 361.07 275.82 30.9 275.82 261.81 5.4

Other Operating Income 0 0 0 0 32.37 0 32.37 32.32 0.2

Other Income 0.07 0.2 -65 0.2 0.87 -77 0.87 1.15 -24.3

Total Income 513.98 361.27 42.3 361.27 309.06 16.9 309.06 295.28 4.7

Total Expenditure 38.75 32.95 17.6 32.95 33 -0.2 33 23.56 40.1

PBIDT 475.23 328.32 44.7 328.32 276.06 18.9 276.06 271.72 1.6

Interest 310.11 200.92 54.3 200.92 180.2 11.5 180.2 201.18 -10.4

PBDT 165.12 127.4 29.6 127.4 95.86 32.9 95.86 70.54 35.9

Depreciation 2.36 1.83 29 1.83 1.44 27.1 1.44 0.96 50

Tax 42.42 33.99 24.8 33.99 25.46 33.5 25.46 19.3 31.9

Fringe Benefit Tax 0 0 0 0 0 0 0 0 0

Deferred Tax 0 0.07 0 0.07 0 0 0 0 0

Reported Profit After Tax 120.34 91.51 31.5 91.51 68.96 32.7 68.96 50.28 37.2

Extra-ordinary Items 0 0 0 0 0 0 0 0 0

Adjusted Profit After Extra- ordinary item 120.34 91.51 31.5 91.51 68.96 32.7 68.96 50.28 37.2

Basic:

EPS (Unit Curr.) 34.13 26.19 30.3 26.19 19.89 31.7 19.89 14.51 37.1

Diluted EPS (Unit Curr.) 34.01 26.13 30.2 26.13 19.85 31.6 19.85 14.51 36.8

Dividend Per Share(Rs.) 11.5 11 4.5 11 6.5 69.2 6.5 4.8 35.4

Dividend (%) 115 110 110 65 65 48

PBIDTM(%) 92.47 90.93 1.7 90.93 100.09 -9.2 100.09 103.79 -3.6

PBDTM(%) 32.13 35.28 -8.9 35.28 34.75 1.5 34.75 26.94 29

PATM(%) 23.42 25.34 -7.6 25.34 25 1.4 25 19.2 30.2

PROFIT AND LOSS STATEMENT ANNUAL

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200703 200803 200903 201003 20110

SOURCES OF FUNDS :

Share Capital 34.64 34.65 34.65 34.73 35.1

Reserves Total 129.6 155.62 186.22 229.9 282.7

Total Shareholders Funds 164.24 190.27 220.87 264.63 317.9

Secured Loans 1137.33 1246.57 1954.97 2003.83 2487

Unsecured Loans 167.91 526.47 290.18 319.29 478.7

Total Loan Funds 1305.24 1773.04 2245.15 2323.12 2966.3

Other Liabilities 0 0 0 0

Total Liabilities 1469.48 1963.31 2466.02 2587.75 3284.2

APPLICATION OF FUNDS :

Loan / Non-Current Assets 1376.59 1769.61 2091.43 2453.7 3176.8

Fixed Assets

Gross Block 17.75 18.93 19.77 20.11 24.3

Less: Accumulated Depreciation 9.54 10.26 10.64 10.6 12.1

Less:Impairment of Assets 0 0 0 0

Net Block 8.21 8.67 9.13 9.51 12.2

Lease Adjustment 0 0 0 0

Capital Work in Progress 0 0 0 0

Investments 17.46 16.64 12.77 32.72 34.6

Current Assets,Loans & Advances

Inventories 0 0 0 0

Sundry Debtors 0 0 0 0

Cash and Bank Balance 82.93 159.55 374.88 135.6 123.6

Loans and Advances 64.48 63.65 41.2 26.82 33.1

Total Current Assets 147.41 223.2 416.08 162.42 156.8

Current Liabilities 22.3 23.48 27.76 27.58 36.3

Provisions 60.71 35.47 40.75 52.36 69.2

Total Current Liabilites & Provisions 83.01 58.95 68.51 79.94 105.5

BALANCE SHEET

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200703 200803 200903 201003 201103

Net Current Assets 64.4 164.25 347.57 82.48 51.2

Miscellaneous Expenses not written off 0 0 0 0 0

Deferred Tax Assets 6.98 7.81 8.37 10.21 10.

Deferred Tax Liability 4.16 3.67 3.25 0.87 1.0

Net Deferred Tax 2.82 4.14 5.12 9.34 9.2

Total Assets 1469.48 1963.31 2466.02 2587.75 3284.2

Contingent Liability 16.01 28.79 0 0 0

Key Ratios 200703 200803 200903 201003 20110

Debt-Equity Ratio 9.5 8.68 9.77 9.41 9.0

Long Term Debt-Equity Ratio 6.96 6.66 5.97 5.2 5.1

Current Ratio 3.47 4.07 2.66 2.34 2.4

Loans Turnover 0.12 0.13 0.15 0.14 0.1

Advance / Loans Funds (%) 102.53 102.21 96.09 99.49 106.4

Tot. Income / Capital Employed (%) 11.06 11.85 13.33 12.23 12.2

Interest Expended / Capital Employed (%) 6.53 7.1 9.08 7.13 6.8

PBIDTM (%) 84.94 89.47 92.02 89.32 91.1

PBITM (%) 84.38 89.06 91.7 88.86 90.

PBDTM (%) 25.95 29.55 23.89 31.02 35.3

CPM (%) 20.86 21.23 17.35 22.78 25.

APATM (%) 20.3 20.81 17.03 22.31 25.3

ROCE (%) 9.34 10.55 12.23 10.87 11.1

RONW (%) 23.58 23.89 24.45 28.41 31.4

Payout (%) 37.32 34.66 35.05 34.61 45.4

EPS (Rs.) 8.04 11.54 13.69 18.78 24.2

KEY FINANCIAL RATIOS

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Trailing 1 Qtr

(Current

Year)

Trailing 1

Qtr (Last

Year)

Trailing 2 Qtr

(Current

Year)

Trailing 2 Qtr

(Last Year)

Trailing 3 Qtr

(Current Year)

Trailing 3 Qtr

(Last Year)

Period 201203 201103 VAR %

201203-

201112 201103-201012 VAR % 201203-201109 201103-201009 VAR %

Gross Sales 165.73 119.19 39 297.65 207.07 43.7 412.43 284.71 44.9

Excise Duty 0 0 0 0 0 0 0 0 0

Net Sales 165.73 119.19 39 297.65 207.07 43.7 412.43 284.71 44.9

Other Operating Income 0 0 0 0 6.2 0 7.46 11.86 -37.1

Other Income 0 0.01 0 0.02 0.31 -93.5 0.17 0.46 -63

Total Income 165.73 119.2 39 297.67 213.58 39.4 420.06 297.03 41.4

Total Expenditure 9.81 8.63 13.7 23.74 21.92 8.3 38.8 31.17 24.5

PBIDT 155.92 110.57 41 273.93 191.66 42.9 381.26 265.86 43.4

Interest 88.26 58.11 51.9 169.83 112.24 51.3 243.84 159.71 52.7

PBDT 67.66 52.46 29 104.1 79.42 31.1 137.42 106.15 29.5

Depreciation 0.66 0.52 26.9 1.24 1.04 19.2 1.79 1.47 21.8

Tax 11.43 10.34 10.5 23.99 19.24 24.7 35.84 29.12 23.1

Fringe Benefit Tax 0 0 0 0 0 0 0 0 0

Deferred Tax 0 0 0 0 0 0 0 0 0

Reported Profit After Tax 55.57 41.6 33.6 78.87 59.14 33.4 99.79 75.56 32.1

Extra-ordinary Items 0 0 0 0 0 0 0 0 0

Adjusted Profit After Extra-ordinary item 55.57 41.6 78.87 59.14 99.79 75.56

PBIDTM(%) 94.08 92.77 92.03 92.56 92.44 93.38

PBDTM(%) 40.83 44.01 34.97 38.35 33.32 37.28

PATM(%) 33.53 34.9 -3.9 26.5 28.56 -7.2 24.2 26.54 -8.8

PROFIT AND LOSS STATEMANT TRAILING QUARTERS

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8Q Growth IndexGRUH Finance IIA

Sales 237 146Operating Profit 180 144

Cash Generated 152 190

Valuation Q-201203 TTM-201203 23/04/2012

OP % OP % Mcap %

GRUH Finance 328.36 1.72 429.92 1.76 2395.81 2.00H D F C 12446.10 65.14 15763.14 64.38 100942.15 84.18

LIC Housing Fin. 4398.13 23.02 5662.57 23.13 12931.66 10.78

Dewan Hsg. Fin. 1277.61 6.69 1922.14 7.85 2715.36 2.26

GIC Housing Fin. 361.13 1.89 414.89 1.69 479.53 0.40

Can Fin Homes 264.39 1.38 264.39 1.08 237.80 0.20

Others 32.20 0.17 29.36 0.12 206.06 0.17

Sector 19107.92 100.00 24486.41 100.00 119908.37 100.00

Sales jumped to Rs. 165.73 crore

The Company also managed to hold on to the margins.

Consequently O P soared up to Rs. 155.92 crore (+41.03 %)

After providing for interest, the company generated cash before depreciation Rs.

67.66 Crore

This works out to around 40.83 paise per sales rupee Gruh Finance board of director

at a meeting held on Tuesday, 24 April 2012, recommended a dividend of Rs 11.50

per share. The board also approved a 5-for-1 stock split.

The stock hit a high of Rs 751.90 so far during the day, which is a record

high for the counter. The stock hit a low of Rs 702.15 so far during the day.

The stock had hit a 52-week low of Rs 340 on 8 June 2011.

SECTORAL COMPARISON

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Disclaimer: The calls made herein are for informational purpocompleteness of any information, and is not responsible for errors of a

is strictly confidential and is meant for the intended recipients. Any alt

prior consent is prohibited. The information and data are derived from

nor its employee are Responsible for the Profits & loss (es) arising du

investors falling under different categories. All futures entail signific

investment.Corp office: SCO 58-59 Sector 17-D, Chandigarh 16

team: Published by Jitinder Chauhan (For your feedback/queries email

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se and report contains only the viewpoints. We make no representation or wa

ny kind though the information obtained from the sources, which is believed to

ration, transmission, photocopied distribution in part or in whole or reproductio

the source that are deemed to be reliable the above calls are based on the theo

to the trades. The commodities and derivatives discussed and opinions expres

nt risk, which should be fully understood prior to trading. Consult your Inve

0017 Ph 0172-2712222, 5087853 .email: [email protected] [email protected] or Call 0172-5013535/9914487777)

201103

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PAYOUT(%)2

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EARNINGS P

US CHARTS & TABLES

rranty regarding the correctness, accurac

be reliable. The information contained he

n of any form of the information withou

ry of Technical Analysis. Neither the com

sed in this report may not be suitable fo

stment Advisor / Broker before making

Vikson Securities rese

T WORTH (%)

RONW(%)2

903 201003 201103

R SHARE(%)

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634733728782448750_gruh housing finance ltd

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