DHFL has come out with steady results.
9 month performance:
Disbursements up 37%, Loan book at 26000 Cr now.
Income up 37%, PAT up 20%
Net Interest Margin improves to 2.87% and Gross NPA decreases to 0.73% and NIL net NPA. Only 6% exposure to builders/projects.
The long awaited merger with FIrst Blue Home finance will happen in Q-4 as all court approvals have been obtained. As per my understanding currently DHFL has 11.73 Cr shares, the merger will add another 1.08 Cr shares.
The expected PAT for DHFL for FY13 with same growth exhibited in 9 months will be 365 Cr and if First Blue also grows as it has grown in 9 months PAT will be 121 Cr. EPS after the merger works out to Rs 38. Request others to cross check this.
When HDIL went down recently, as usual DHFL went downtemporarily and bounced back to 200+ levels. Kapil Wadhawan had to come on TV again to explain the family split has happened and they have nothing to do with HDIL
The share holding pattern of the com shows good presence of institutions:
Caledonia PLC-8.5%, Government of Singapore - 3.5%, HSBC - 4.8%, Wellington Trust 2.2% etc Caledonia also has a nominee in the board.
I see DHFL as a good long term investment with management exhibiting steady growth with quality loan book.
Do have a look their investor presentation