GRUH Finance - mini HDFC

(Srinivasan Sundaram) #241

GRUH Finance - FY16 results on April 19, 2016
Gruh Finance Ltd has informed BSE that the Company’'s Board Meeting will be held on April 19, 2016, inter alia, to consider the Audited Annual Financial Results for the year ended March 31, 2016 alongwith 4th quarter results, and to consider the recommendation of dividend, if any, for the year 2015-16.

In this connection, the trading window for dealing in the shares of the Company shall remain closed from March 25, 2016 to April 21, 2016 (both days inclusive) in terms of the Share Dealing Code and SEBI (Prohibition of Insider Trading) Regulations, 2015.

(aashish2137) #242

Sorry for my basic query but what does it mean exactly? Will the trading on indices be stopped altogether or share delivery will be closed?

Additional query: Between March 31 and April 19, the Company will have only 18 days. How will they finish the audit, finalize the accounts and approve them in that small window?

(Sunil) #243

Hi Aashish,

The trading would be not allowed only to insiders during this period,

(Srinivasan Sundaram) #244

2015 audited results were announced on Apr16th … Might be having efficient systems & Processes in place…


Does anyone have an idea of the impact of credit guarantee scheme of NHB on the affordable housing loan sector. It appears that at 1% of the loan amount as the guarantee fees, HFCs can get insured upto 85% of the loan amount against default if the loan is <5lacs, and 90% of loan amount if loans <2 lacs. This should be a big support for affordable HFCs. Would this make affordable housing finance a marketing game for FCs and credit appraisal would become less important?

(Kunal shah) #246

pranav if i remember correctly NHB lends at lower rates to HFC but there are string attached like HFC can not charge high interest (spread was capped at 2 %)

so credit guarantee scheme may be there but will have string attached.

in case of gruh it will not be feasible as they lend at rate which have high NIM and that is USP but may be good for GIC or canfin .

(Siddharth) #247

The cap was introduced at 2% spread last year but has been removed in 2016 as very few players borrowed under the scheme and thus capping proved ineffective

(Kunal shah) #248

do u have any source, hard to believe bcos why would NHB lend at low rate if there is no social benefit to citizens.

(Kunal shah) #249

found some piece u r right cap is released on rural loans

found it from

this is positive for HFC in general , missed totally thanks Siddharth .

(Siddharth) #250

Please go through the report by ICRA- spread has now been increased from 2 to 3.5%.

Quoting from the above report
The National Housing Bank (NHB) vide its circular of January 2016 has revised the interest rate and the on-lending cap under the Rural Housing Fund (RHF) with immediate effect. For loans up to Rs. 15 lakh (or Rs. 1.5 million), the interest rate has been revised to 6.12% to 6.87% and the on-lending spread cap has been increased from 2.0% earlier to 3.5%.

(Rama Kumara Nagaraja) #251

Dear @subashnayak_19_ and others ,

How does Gruh or any HFC plan to recover capitol given out to rural home owners?
We know people in rural areas are mostly farmers and its hard to recover capitol considering the fact that most of them rely on agriculture.
Also farmer protests and suicides are on the rise, which means all loans will need to waived off.

Also, home loan at 12% seems atrociously high :frowning:

(smehta) #252

Result updates:

  1. Sales 367cr vs 305 cr (20%) QOQ
  2. Sales 1275.40cr vs 1060.32cr (20%) YOY
  3. EPS 2.414 vs 1.986 QOQ 21.55%
  4. Eps 6.699 vs 5.566 YOY 20%
  5. Loan Asset growth 25%
  6. NNPA @ 0.09%


A questions to seniors. Is HDFC not better as 20% grower at 25 PE than Gruh as 20% grower at 40 PE?

(Neerav Paliwal) #255

Market cap is the difference. There are more chances of a mid cap growing at 20% for some time than a large cap.


I’m not a senior but these could be the reasons why GRUH trades at a higher PE.

  1. HDFC would have holding company stock valuation discount
  2. Look at the NPAs of HDFC and GRUH
  3. Like explained GRUH is a smaller company than HDFC so likely to grow for a long time than HDFC


I meant HDFC Bank. I get same growth as Gruh with much cheaper valuation.

(Aniket Gore) #258

you are comparing apples and cheese.

Both are good candidates for a quality long term portfolio - it need not be “either-or”!

(AMN) #259

Did anyone attend today’s AGM. Would request you to post the gist of the proceedings.
Discl: Invested

(Piyush) #260

Gruh Finance, home loan finance experts, reported standalone net profit of Rs 60.18 crore for the quarter ended June 30th 2016, declining 31.47 % qoq but rising 19.62 % yoy. Its net interest income came in at Rs 126.02 crore declining 18.92 % qoq but rising 18.26 % yoy. The company’s provisions at Rs.12.54 crore grew by 105.5% qoq and 3.81% yoy respectively.
Standalone EPS for the quarter stood at Rs 1.65.

(vivek naik) #261

one cannot compare gruh on a qoq basis.their 4th qrt is always the best.also DTL this yr is 50%.from fy18 onwards there will be no DTL…