PNB Housing Fin - Fast Growing HFC


(Ronak) #531

Hello All,

Can someone gather material on impact of IND AS on BFSI companies or Housing Finance Companies. This would be of great help.


(ap_21) #532

RoE is gradually going down…doesnt seem to be good


(abhishkjain2626) #533

some respite…the PNB brand name is most probably going to stay…


(Julian) #534

Every investor in this stock should read the latest conference call transcript. Even though it is a generic business, it’s competitive advantage has been Sanjaya Gupta, ever since he took over PNB housing in 2010.


#535

On relatively slower disbursement growth


(Balusu Aditya) #536

Guys, Any comments about this?


(Vishal Bharti) #537

I feel it might be good for PNBHF - more the betters, better the price realisation…although not sure about it being positive for Bandhan(which has high NIMs which are not seen in home finance space)?


(atul1082) #538

As a bank, bandhan would not be able to enjoy the kind of NIMs ,it’s earning now although receivables would b more secured.Thecost of funds would go down , so the earnings.Every organization wants to b in all facets of financial activities for a long term survival and fight competition, however for short term it would be negative for bandhan


(varunm2112) #539

Would Bandhan make a merger or only controlling stake ?


(Julian) #540

It would be a “Bandhan”


(Julian) #541

PE majors among 20 in fray for PNB Housing - The Economic Times http://www.ecoti.in/drApla73 via @economictimes

The last date of submission of non binding bids was yesterday ie.,August 24th. Kotak Mahindra Bank, Dhfl, and Bandhan Bank among others are speculated to have submitted bids.


(Prasad) #542

Do we know the dates/timelines by when the binding bids are supposed to be submitted? Assume the company will have to shortlist the bidders first? Is there a specific criteria followed during such process? Thanks for your valuable reply and insights.


(Prasad) #543

Do we know the dates/timelines by when the binding bids are supposed to be submitted? Assume the company will have to shortlist the bidders first? Is there a specific criteria followed during such process? Thanks for your valuable reply and insights.


(Subbu) #544

Fullerton pulls out of race.


#545

Similar thing happened with canfin homes as well. Once the EOI & Bidding process started, few companies like Kotak pulled out of race as stock prices started moving up fast.


(Julian) #546

Uday Kotak may acquire rival banks or PNB housing after RBI rebuff https://www.livemint.com/Companies/8FeT2NXK8DBUaHoiHpyovK/Uday-Kotak-Asias-richest-banker-may-acquire-rivals-after.html


(Subbu) #547

If they run the company well, this has to be a much bigger company 5 years down the line. Not sure what JPMorgan’s reasons are to downgrade. Any insights?


(Julian) #548

With 50% EPS growth expected this year, EPS if PNB housing will be 75 by the end of this financial year. Valued at 25 pe, target will be ₹1875/- Even during bleak periods, market has given 20 pe rating to PNB housing which works out to ₹1500/- Also market in its wisdom has given 60 pe plus rating to Gruh Finance. All other housing companies are valued at around 15 pe only. Even Indiabulls housing with such superb ratios has received only 15 pe rating, since the market suspects their corporate governance, the quality of their portfolio and the recent selling by the promoter group.

JP Morgan in its wisdom chooses to give 14 pe rating to PNB housing, thus valuing it at ₹1050/- whereas the normal rating is 25 pe and thus ₹1875/-

Bidders were prepared to give 6 times book for Canfin homes, but it was not sold. PNB being desperate to sell might accept anything above market price. Carlyle having sold recently at lower levels, will be prepared to accept any reasonable rate. Share price may shoot up during bidding and target of HDFC securities is ₹1550/-

Buy PNB Housing Finance, target Rs 1550: Vinay Rajani - https://www.moneycontrol.com//news/business/markets/buy-pnb-housing-finance-target-rs-1550-vinay-rajani-2889451.html

We should ensure that share price does not go up too much, and that a bid with a fair price might be successful. If I were the new owner, I would buy back shares (when stock is selling cheap and not at premium like the IT companies) instead of dividend payout (and thereby paying foolish tax on dividends) and insist Sanjaya Gupta for ROE of 19% before any capital raise plans.


(Peabody) #549

All these firms have an agenda. JP Morgan in its wisdom must have deliberately priced it lower.Well run company with clean management gets a low rating based on imaginary fears. I have never trusted these marquee names. Once we are clear about the performance and management capability-rest will follow.

Disc-invested and willing to wait


(saumya) #550

Had a casual talk with HDFC Ltd(Housing) raipur regional manager just wanted to post certain things related to sector
1.HDFC Ltd they usually are given 20% target and demand were so high till now thatfrom direct customers that they were getting targets completed never required to go chase builders for more customers and lot of rejection on loans happened as the focus was always on quality.
2.This year they are fighting to get even 8% growth although focus on quality is still there
3.Competition has increased very high in the sector and people are lending to any kind to chase growth.
4.Simple thing is supply has increased very rapidly and demand has gone down in a commodity business.
5.HDFC Ltd is still not compromising on quality though growth may suffer he don’t know how other players were growing that fast.

Disclosure: Not invested in any housing finance stocks and this is not buy sell advice. Just wanted to share some inputs I got in by chance meeting.these observations may not be valid completely on pan india basis.