GRUH Finance - mini HDFC

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?

Hi Aashish,

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

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?

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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 .

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

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

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

found it from www.icra.in/Files/ticker/ICRA-HFAH.pdf

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

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

http://www.icra.in/Files/ticker/ICRA-HFAH.pdf

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%.

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:

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

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

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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.

you are comparing apples and cheese.

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

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

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.

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…

also NII is the difference between interest earned and interest expended .this qrt it is 126 crs and the corresponding qrt last yr it was 104crs.so shouldnt NII be 22%?