Vikson Research

GRUH HOUSING FINANCE LTD.

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P/E 19.32 Lat.86 Div.35 735406 2.00 Lat.(Rs Cr) Shareholding Pattern HOLDING PATTERN Holder Foreign Institutions 17% FORGEIN 18% 2% 2% Govt Holding Shares (%) 6478600 18.60 first target 824 & 2nd target 1000 time frame 6 months. Price Vs Sensex Chart MARKET DATA (AS ON 18 MAY 2012 2012) Price (Rs) 656.We initiate a buyy rating as on 18 May 2012 @ Rs 656.09 21307785 60.97 2322 Lat. BV(Rs) 108.12 35302638 100 INSTITUTIONS NON PROMOTER Non Promoter Corp.6 52 W H/L(Rs) 751. Hold.Eqty (Rs Cr) 35.36 6043962 17.90 / 340.08 0 0 736885 2. Face Value 10 Beta-Sensex 0. Yield (%) 1.5018 Mkt. PROMOTERS PUBLIC & OTHERS 61% Promoters Public & Others Totals PAGE: 2 . Cap. EPS(Rs) 33.43 Lat.7 Lat.

and to developers. Also.90. Housing Development Finance Corporation Ltd.COMPANY BACKGROUND Gruh Finance is engaged in providing loans for purchase and construction of residential houses. GRUH has financed 4.36% stake in the firm (as per the shareholding pattern on 31 March 2012). Modasa and Palanpur and three service centres . Chandrapur. Gruh Finance is a subsidiary of housing finance major HDFC. As a result.one in Pune and two in Surat and hence total retail network now consists of 28 offices .000 equity shares from Gujarat Ambuja Cements Ltd. the company has introduced three-tier pricing strategy linked to the duration of the loan. The company came out with an FCD issue in 1994-95.49% and therefore it is a subsidiary of HDFC. Under the Golden Jubilee Rural Housing Finance Scheme of the Government of India. (HDFC) the largest shareholder of the company acquired 68.(GACL) in July 2000. GRUH opened four new retail office in Amravati.17 in Gujarat and 11 in Maharashtra.. Due to the stiff competition. which was oversubscribed. the company has introduced new loan products like site finance and loans for non-residential premises. PAGE: 3 . construction/upgradation of dwelling units. Keeping in view the competitive environment and the emerging challenges.. HDFC's shareholding in GRUH currently stands 54. The company was the first HFC to re-introduce the 20 year home loan product in the market.891 dwelling units registering a growth of 35% over the previous year. During the year 2000-01. It also plans to finance land development projects. Gruh Finance Ltd (formerly known as Gujarat Rural Housing Finance Corporation) was incorporated in 1986 to provide financial services mainly for rural housing. during the year 1999-2000. which holds 60.

32 276.95 33 -0.9 95.32 44.9 Fringe Benefit Tax 0 0 0 0 0 0 0 0 0 Deferred Tax 0 0.3 361.87 1.9 276.2 26.) 11.5 180.7 19.12 127.07 0.11 200.13 35.51 31.5 69.93 1.07 0 0 0 0 0 120.27 42.47 90.79 -3.2 201.96 32.89 14.PROFIT AND LOSS STATEMENT ANNUAL Full Year 201203 Full Year 201103 VAR [%] FullYear Full Year 201103 Full Year 201003 VAR [%] FullYear Full Year 201003 Full Year 200903 VAR [%] FullYear Gross Sales 513.) 34.5 4.75 1.82 30.9 275.13 30.51 68.28 -8.3 26.3 361.07 42.) 34.7 68.06 271.6 25.99 24.01 26.34 91.91 361.92 54.28 4.27 309.06 18.4 29.75 26.44 27.83 1.5 34.82 261.51 31.28 37.07 275.6 19.83 29 1.28 37.3 200.2 0.2 30.75 32.9 Depreciation 2.96 50.4 Excise Duty 0 0 0 0 0 0 0 0 0 513.19 30.2 33 23.7 328.19 19.56 40.5 91.7 Total Expenditure 38.8 33.06 16.5 91.5 11 6.44 0.96 50.07 0 0.8 Dividend Per Share(Rs.51 36.18 -10.9 35.6 PBDTM(%) 32.3 31.23 328.42 25.81 5.93 100.4 25 19.09 -9.54 35.37 0 32.91 361.51 37.86 70.6 127.4 95.2 -65 0.4 0 0 0 0 32.5 25.2 EPS (Unit Curr.28 34.99 25.32 0.89 31.37 32.8 35.82 261.2 Other Income 0.34 -7.46 33.36 1.13 19.9 275.9 309.82 30.3 Total Income 513.1 Diluted EPS (Unit Curr.1 1.3 361.2 0 0 0 0 0 0 0 0 0 120.95 17.6 32.07 42.6 Interest 310.4 PBDT 165.72 1.09 103.96 50 Tax 42.94 29 PATM(%) 23.7 90.85 14.34 25 1.96 32.92 180.42 33.46 19.2 6.5 11 4.2 11.13 26.81 5.15 -24.2 100.2 Remark Net Sales Other Operating Income Reported Profit After Tax Extra-ordinary Items Adjusted Profit After Extra- ordinary item Basic: PAGE: 4 .07 275.51 68.7 68.34 91.1 PBIDT 475.4 Dividend (%) 115 110 110 65 65 48 PBIDTM(%) 92.86 32.98 361.06 295.87 -77 0.85 31.

BALANCE SHEET 200703 200803 200903 201003 201103 Share Capital 34.08 162.2 416.75 18.9 282.27 220.59 1769.12 2966.22 229.16 Total Current Assets 147.3 23.01 58.62 186.13 9.25 Total Current Liabilites & Provisions 83.33 1246.58 36.6 12.67 9.64 12.66 Inventories 0 0 0 0 0 Sundry Debtors 0 0 0 0 0 Cash and Bank Balance 82.18 0 0 0 0 0 8.75 52.Loans & Advances Current Liabilities PAGE: 5 .64 10.88 135.04 2245.95 68.93 19.42 156.82 33.27 1376.15 2323.6 155.71 35.91 526.21 Lease Adjustment 0 0 0 0 0 Capital Work in Progress 0 0 0 0 0 17.24 1773.73 Total Loan Funds 1305.63 317.2 26.48 1963.54 10.65 41.64 34.78 164.21 8.18 319.55 374.02 2587.69 Loans and Advances 64.11 24.47 290.72 34.97 2003.43 2453.83 2487.87 264.73 35.51 79.7 3176.65 34.77 32.36 69.76 27.57 1954.48 27.57 SOURCES OF FUNDS : Total Shareholders Funds Secured Loans Other Liabilities Total Liabilities APPLICATION OF FUNDS : Loan / Non-Current Assets Fixed Assets Gross Block Less: Accumulated Depreciation Less:Impairment of Assets Net Block Investments Current Assets.51 12.77 20.39 9.6 Unsecured Loans 167.41 223.61 2091.6 123.93 159.47 40.32 Provisions 60.24 190.16 Reserves Total 129.94 1137.46 16.85 17.65 34.85 22.26 10.94 105.29 478.48 63.75 3284.33 0 0 0 0 0 1469.31 2466.

34 9.) PAGE: 6 .23 10.66 5.78 24.2 5.4 164.95 29.84 PBIDTM (%) 84.9 APATM (%) 20.41 Loans Turnover 0.54 13.27 16.41 31.06 91.11 PBITM (%) 84.66 35.02 35.13 102.85 13.13 0.86 90. Income / Capital Employed (%) Interest Expended / Capital Employed (%) EPS (Rs.07 2.81 17.23 17.14 5.47 4.03 22.78 25.32 91.75 3284.97 5.08 Long Term Debt-Equity Ratio 6.53 7.25 0.79 0 0 0 Net Current Assets Miscellaneous Expenses not written off Total Assets Contingent Liability KEY FINANCIAL RATIOS Key Ratios 200703 200803 200903 201003 201103 9.39 ROCE (%) 9.47 8.77 9.48 51.82 4.5 8.53 102.49 106.37 10.38 89.15 0.27 6.45 28.04 11.33 12.55 23.05 34.200703 200803 200903 201003 201103 64.31 25.41 9.25 347.34 2.03 Net Deferred Tax 2.3 Deferred Tax Liability 4.55 12.06 11.27 1469.28 0 0 0 0 0 Deferred Tax Assets 6.45 11.47 92.35 22.12 9.67 3.15 Current Ratio 3.35 CPM (%) 20.14 0.94 89.21 96.3 20.12 0.7 88.68 9.12 RONW (%) 23.86 21.48 1963.01 28.02 2587.24 Debt-Equity Ratio Advance / Loans Funds (%) Tot.16 3.89 31.66 2.81 8.08 7.21 10.87 11.98 7.09 99.89 24.42 Payout (%) 37.23 12.1 9.69 18.31 2466.96 6.6 PBDTM (%) 25.13 6.34 10.02 89.61 45.87 1.58 23.32 34.57 82.

5 Depreciation 0.97 38.54 Net Sales Total Expenditure Reported Profit After Tax Extra-ordinary Items -3.73 119.02 0.52 26.4 420.87 59.87 59.9 169.07 43.2 39 297.8 Tax 11.83 44.08 92.44 93.14 99.86 -37.19 Other Operating Income 0 Other Income Total Income Trailing 3 Qtr (Current Year) Trailing 3 Qtr (Last Year) VAR % 201203-201109 201103-201009 VAR % 207.67 213.57 41.99 19.74 21.06 297.56 92.1 137.42 31.2 -8.79 75.66 42.56 24.17 0.24 1.26 58.3 243.8 31.2 26.47 21.42 106.11 51.1 0 0 0 0 0 0 0 0 0 Adjusted Profit After Extra-ordinary item 55.79 1.84 159.2 1.15 29.92 110.24 24.07 43.9 -7.26 265.7 35.77 92.71 44.57 41.73 119.7 23.46 11.32 37.9 0 0 0 6.46 -63 165.9 381.35 33.73 119.03 41.65 Excise Duty 0 0 0 165.71 44.79 75.34 10.92 8.1 Fringe Benefit Tax 0 0 0 0 0 0 0 0 0 Deferred Tax 0 0 0 0 0 0 0 0 0 55.5 0.83 112.17 24.5 28.04 19.9 0 0 0 0 0 0 39 297.57 41 273.5 PBIDT 155.43 284.56 32.71 52.65 207.7 412.38 PBDTM(%) 40.7 PBDT 67.8 PAGE: 7 .PROFIT AND LOSS STATEMANT TRAILING QUARTERS Trailing 1 Qtr (Current Year) Trailing 1 Qtr (Last Year) Trailing 2 Qtr (Current Year) Trailing 2 Qtr (Last Year) Period 201203 201103 VAR % 201203201112 201103-201012 Gross Sales 165.03 92.58 39.4 Interest 88.2 0 7.14 33.24 51.12 23.53 34.6 78.3 38.56 PBIDTM(%) 94.93 191.63 13.66 52.01 34.81 8.84 29.5 23.4 99.9 26.9 1.1 79.6 33.66 0.4 9.6 78.7 412.1 0 0.86 43.46 29 104.19 39 297.43 10.01 0 0.31 -93.43 284.28 PATM(%) 33.

which is a record high for the counter.69 GIC Housing Fin. The stock hit a high of Rs 751.00 15763.90 so far during the day.39 1.89 1. Consequently O P soared up to Rs.13 1. 4398. the company generated cash before depreciation Rs.14 64.66 Crore This works out to around 40.76 2395.92 1.00 IIA 146 144 190 TTM-201203 23/04/2012 OP % Mcap % 429.78 1922. 1277.36 0. The board also approved a 5-for-1 stock split.53 0.38 100942.14 LIC Housing Fin.06 0.13 23.41 100.SECTORAL COMPARISON 8Q Growth Index Sales Operating Profit Cash Generated Valuation GRUH Finance 237 180 152 Q-201203 OP % GRUH Finance 328.00 Sales jumped to Rs.72 H D F C 12446.69 479.73 crore The Company also managed to hold on to the margins. PAGE: 8 .26 414.14 7.66 10.02 Dewan Hsg.20 0.81 2.89 Can Fin Homes 264.37 100. Fin.15 84.00 119908.40 264.17 24486. The stock had hit a 52-week low of Rs 340 on 8 June 2011.85 2715.18 5662.08 237.15 so far during the day. 165. 361.36 2. 24 April 2012.57 23.38 Others 32.39 1.13 12931.17 Sector 19107.92 crore (+41.83 paise per sales rupee Gruh Finance board of directors at a meeting held on Tuesday.50 per share.03 %) After providing for interest.36 1. 155.92 100.10 65. The stock hit a low of Rs 702. 67.61 6.20 29.80 0.12 206. recommended a dividend of Rs 11.

transmission.chauhan@vikson. and is not responsible for errors of any kind though the information obtained from the sources. Consult your Investment Advisor / Broker before making any a investment. D.email: viksonsecurities@vikson. Any alteration.in or Call 0172-5013535/9914487777) Vikson Securities research PAGE: 9 . The information contained herein is strictly confidential and is meant for the intended recipients. Corp office: SCO 58-59 Sector 17-D.FOCUS CHARTS & TABLES ADVANCE TO FUNDS RATIO (%) 120 100 80 60 40 20 RETURN ON NET WORTH (%) 35 30 25 20 15 10 5 0 RONW(%)2 0 200703 200803 200903 201003 201103 DIVIDEND PAYOUT RATIO(%) 50 EARNINGS PER SHARE(%) 25 40 20 30 20 15 PAYOUT(%)2 10 10 0 5 0 200703 200803 200903 201003 201103 Disclaimer: The calls made herein are for informational purpose and report contains only the viewpoints. photocopied distribution in part or in whole or reproduction of any form of the information without our prior consent is prohibited. All futures entail significant risk. Neither the company nor its employee are Responsible for the Profits & loss (es) arising due to the trades. which should be fully understood prior to trading.in team: Published by Jitinder Chauhan (For your feedback/queries email to Jitinder. The information and data are derived from the source that are deemed to be reliable the above ca calls lls are based on the theory of Technical Analysis. Chandigarh 160017 Ph 0172 0172-2712222. which is believed to be reliable. accuracy or completeness of any information. 5087853 . We make no representation or warranty war regarding the correctness. The commodities and derivatives discussed and opinions expressed in this report may not be suitable for all investors falling under different categories.

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