Motilal Oswal - GRUH Finance (GRUH) MOSL: GRUH FINANCE (Neutral)-Impressive all-round performance

Report

Motilal Oswal

Alpesh Mehta

MOSL: GRUH FINANCE (Neutral)-Impressive all-round performance

â€‹Gruh Finance: Impressive all-round performance

(GRHF IN, Mkt Cap USD1.9b, CMP INR492, TP INR450, 9% Downside, Neutral)

Gruh Finance (GRHF) reported PAT of INR722m (7% below our estimate) for 1QFY18, driven by higher-than-expected provisioning charge. Operating performance was robust and ahead of expectations.
Loan growth was in line with trend at 19% YoY, driven by retail home loans. Disbursements continue to be strong in retail home loans. Interestingly, the company disclosed disbursements under the CLSS scheme too. This scheme has picked up well, with 3,348 loans being disbursed in 1QFY18 v/s 5,788 in FY17. Disbursements under the EWS/LIG scheme continue to dominate overall CLSS-related disbursements.
Management commented that while affordable housing developers are excited with the government's impetus, there is yet no traction seen. All developers are busy registering and complying with RERA. In addition, there has been no meaningful change to the process of approvals. Management expects to see an impact on the supply side after 2-3 quarters.
Cost of funds continues to decline (-14bp QoQ) due to prepayment of majority bank loans. Bank borrowings now comprise only 5% of total borrowings. Asset quality remains pristine - GNPL ratio increased by 8bp YoY to 0.64%. However, provisions in the quarter were INR279m v/s INR125m in 1QFY17 and INR14m in 4QFY17.

19/07/2017 10 EN

Underlying

GRUH Finance

GRUH Finance is a Housing Finance Company (HFC) based in India that is recognized by National Housing Bank. Co. offers loans to individuals for purchase, construction, repairs, renovation of dwelling units. Co. also offers loans to the Self-employed segment where in formal income proofs are not available. Co. also offers loans to professional for purchase of office premises. Co. maintains a network of approximately 152 office in 8 states of the country including: Gujarat, Maharashtra Karnataka, Rajasthan, Madhya Pradesh, Chhattisgarh, Tamil Nadu and Uttar Pradesh.

See profile

INE580B01029 India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Analysts

Alpesh Mehta

Other Reports on these Companies

TheScreener

With a more favourable environment, GRUH FINANCE LTD. improves to Slightly Positive

GRUH FINANCE LTD. (IN), a company active in the Mortgage Finance industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 1 out of 4 stars, as well as its unchanged, defensive market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date June 21, 2019, the closing price was INR 279.80 and its potential was estimated at INR 370.50.

Free Trial

June 22, 2019 June 22, 2019 6 EN

SmartInsider

2 directors sold

Two Directors at GRUH Finance Ltd. sold 116,000 shares at between 321.000INR and 321.793INR. The significance rating of the trade was 63/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing...

Free Trial

May 27, 2019 May 27, 2019 1 EN

Motilal Oswal

MOSL: GRUH FINANCE (Coverage Suspended)-Bandhan Bank acquires Gruh Finance in an all-stock deal

Gruh Finance: Bandhan Bank acquires Gruh Finance in an all-stock deal (GRHF IN, CMP INR295, Coverage Suspended) GRUH Finance (GRHF) and Bandhan Bank (Bandhan) has announced a scheme of amalgamation and according to the share swap ratio, for every 1,000 shares of GRHF shareholders will get 568 shares of Bandhan. This is at an ~8% discount to the closing price of GRHF as of 7 Jan’19 and at a ~2.5% premium to the last six months average price. Following this event, GRUH Finance will cease to be a part of our coverage universe. Post amalgamation, Bandhan will have strong presence in the a...

January 8, 2019 January 8, 2019 6 EN

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: GRUH FINANCE (Neutral)-Impressive all-round performance

With a more favourable environment, GRUH FINANCE LTD. improves to Slightly Positive

2 directors sold

MOSL: GRUH FINANCE (Coverage Suspended)-Bandhan Bank acquires Gruh Finance in an all-stock deal

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe