Hi Vinod,
Thanks for the great explanation and the table . made for a interesting reading.
Regards
Raja
@ Vinod MS - Thanks for explaining in detail & layman language about Disbursement growth & loan book growth with clear example of both HDFC & GRUH , it will be interesting to compare it with Canfinhome, GIC Housing, LIC Housing Finance & Repro Housing.
@ Hitesh Bhai - You are right, that’s the best business model quality of Gruh.
DHCL has gross profit margin of around 10%, where as Gruh’s is almost three times. This probably reflects that the latter has a moat is not willing to give it up. I wonder what moat it could have in this industry. (Lower interest cost or a more efficient template of operations inherited from its parent).
Point being, as long as this wide difference in gross profit margin continues to reflect on the statements, I think, it would be justified to pay a higher PE for Gruh. As there is some inherent advantage the company has discovered and is building upon.
After 30%correction from the top, one could start SIP. I say this because this company may or may not go much lower like the others in its peer group. DHCL has corrected 60%, LIC 50%, gruh 25%; (Another technical indication of inherent strength).
The stock corrected to 190. Any technical updates on this one?
this is a stock to buy on declines. 180 seems to be a good support area. also it corrected 25% from its peak 250. in my view you can start buying slowly
Thanks Bala…I bought at 196 and 194. 180 is still 5% away from current price. I am planning to buy at 185-180 in increasing amounts.
The stock corrected to 190. Any technical updates on this one?
Good stocks like HUL, Gruh, ITC, TCS, Infy etc should be considered for purchase only after 50% correction from the top. Else, let cash sit in FD. Or if you still have not allocated then SIP in GOLD ETF, while it is correcting, till your stock corrects 50%.
Some may argue that these are random percentages. Not quite. I have calculated DCF valuations for several scrips. And have discovered that 50% retracement usually covers DCF valuation and margin of safety.
Another reason is that, the corporate resulted are mostly muted this season. Increased growth seems unlikely. What better time to demand margin of safety.
So, don’t give in wait for your price. Now the time is right.
Q1/Fy-14 Results out…
Total Income up 24% to 183.19 Cr from 147.77 Cr.
Net Int Inc up 26.4% to 67.36 Cr from 53.28 Cr.
Net Profit up 26.4% to 33.77 Cr from 26.72 Cr.
Disbursements up 28.6% to 566.86 Cr from 440.64 Cr.
Loan Assets up 32% to 5727.21 Cr from 4338.49 Cr.
Gross NPA Down to 26.3 Cr (0.46%) from 29.73 Cr (0.69%)
During Fy-13:
Total Income was up 26.5%
NII was up 20.5% AND
Net Profit was up 21.2%
With EPS of 8.16
On 08/07/2013, stock on BSE closed at Rs. 237/- up 3.3%
Good results for gruh…
It seems to be heading to report eps figure of around Rs 10 per share for fy 14.
What is good about it is the clear predictability.
Q2 result out
PAT up 26%, disbursements up 25%, loan portfolio up 32%
NPA 0.41%
NIM at 4.14% vs 4.38% at the end of FY13
Finance cost ballooned to 139cr vs 100cr last year. Employee benefit expenses were 11.13cr vs 7.12cr Q2FY13 and 6.68cr in Q1FY14.
Fixed deposits up 44%, now 834cr vs 579cr
EPS 1.91 vs 1.529
Half year EPS 3.792 vs 3.034.
Following is a part of interview of Mr Choksey on CNBC
Q: We have your Q1 net interest income (NII) so your Q2 NII would be Rs 58 crore which would be flat year-on-year. In Q1 you had good growth but will Q2 be relatively muted then?
A: Yes. Second quarter was very bad in terms of the cost of funds. Post July 17-18, the way the interest rates went up all the lenders refinancing rates were increased and that has adversely affected the NII during Q2.
Q: You have some spillover effect of that in Q3 as well?
A: Yes it might be for a month or two months until the lender starts reducing their base lending rates (BLRs) or they start using the rates on the incremental funding and so, even Q3 could be on the flatter side.
Net Int Inc is 71.51 Cr v/s 56.89 Cr which is up 25.7%. Don’t know where they got 58 Cr from.
GRUH FINANCE… daily chart attached.
It seems the stock might finally be coming out of a triangular consolidation lasting more than 1 year.
ATTACHED DAILY CHART OF GRUH.
Hi Hitesh,
It isn’t correct WW…so target may not be appropriate…but it seems it is breaking from triangular pattern so target according to AT breakout…i guess…
Quaterly results of Gruh or out …Find here
The stock run up quite a bit recently. The results are decent! Howerver, considering 9 Month EPS of just 5,77 against FY14E of 9-10 can we expect some correction in the near term to enter this venture? Or this is a stock which doesnt get effected after quarterly results?
Quaterly results of Gruh or out …Find here
The stock run up quite a bit recently. The results are decent! Howerver, considering 9 Month EPS of just 5,77 against FY14E of 9-10 can we expect some correction in the near term to enter this venture? Or this is a stock which doesnt get effected after quarterly results?
The fourth quarter accounts for over 40% of the annual profits. Please refer to the past years (http://www.screener.in/company/?q=511288)
Hence, the company is inline to achieve expected 9-10 EPS for FY14E. It is currently trading at 6.4x FY15E expected book value of Rs 42 which is on the higher side of expectations. Thus the stock might see some short term correction.
here Link: http://www.bseindia.com/xml-data/corpfiling/AttachLive/Gruh_Finance_Ltd_160114_Rst.pdf
Gruh Finance has annouced Q4FY14 Results.The Board of Directors has recommended dividend of Rs.3 Per share and issue of Bonus shares in the ratio of 1:1
| (in crores) | Q4FY14 | Q4FY13 | FY14 | FY13 |
|---|---|---|---|---|
| Revenue | 254.42 | 194.22 | 845.69 | 650.44 |
| Net profit after tax | 73.60 | 63.06 | 176.96 | 145.88 |
| EPS Basic | 4.097 | 3.544 | 9.860 | 8.209 |
Source :http://www.gruh.com/financial-results-for-the-year-ended-march-31-2014.html
PE of 33 is not high for slowing 20% grower?
Absolutely in my views…
However, seeing the opportunity size, great management pedigree and perfect balance sheet and the impending bonus(not sure of the reason why it was announced) the stock may see time correction till the earning catches up.
Please read the following article: