Please refer to important disclosures at the end of this report
GRUH Finance Limited (GRUH) is an India-based housing finance company. The
Company provides home loans to individuals, and families for purchase,
construction and extension. GRUH also provides loans for repair and renovation
of houses and home loans to families in the self-employed category. GRUH has
strong presence in western India and is expanding to other geographies. The
company has a track record of financial and operating performance and has
developed deep understanding of rural India something that will be difficult fo
others to replicate. Asset quality remains largely stable, with GNPL at 0.62% and
NNPA at 0.29%. GRUH has performed impressively, with 26% loan book CAG
and 27% PAT CAGR in the last decade. Its presence in the affordable housing
segment in rural areas provides pricing power on the asset side, with cost o
funding at par with large HFCs. The company has a good return on equity (ROE)
of 32.3% and sales growth of 28.8% CAGR over the last 5 years. Hence Buy.
CMP `296
Stock Info
Beta 0.8
Bloomberg Code
Shareholding Pattern (%)
Promoters 58.6
MF / Banks / Indian Fls 6.8
FII / NRIs / OCBs 17.1
Indian Public / Others 17.5
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
GRUH Finance (3.9) 22.7 157.7
Reuters Code GRUH.BO
BSE Sensex 26,150
Nifty 8,074
Face Value (
Market Cap (
cr) 10,753
52 Week High / Low 370/226
Avg. Daily Volume 58,541
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
GRUH Finance
November 21, 2016
GRUH Finance | Finance
November 21, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement GRUH Finance
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)