Please refer to important disclosures at the end of this report
1
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
r
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
R
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
f
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.
BUY
CMP `296
Stock Info
Sector
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
2
BSE Sensex 26,150
Nifty 8,074
Face Value (
`
)
Finance
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
Others
|
Finance
November 21, 2016
GRUH Finance | Finance
November 21, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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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%)