At PE of 24, P/B of 2.1, comparable size to Canfin Homes in terms of loan book size, superior last 3 years growth rate (tripling of sales and profit), guidance of 3 times growth over the next 3 to 5 years, superior NPM comparable only to Indiabulls Housing Finance, excellent health of books with GNPA of 0.89, excellent parent in Reliance Capital to enable loan at cheaper rates, I wonder why this stock is not quoting at twice it’s current MP of Rs87.
Besides the riskier asset make up of LAP and Construcion finance making up 50% of the portfolio size, I do not see any other issues. This company is in to affordable housing as well. I find this to be an excellent opportunity to play affordable housing theme at excellent price point (with blue chip pedigree considering this is a subsidiary of Reliance Capital).
Disclosure: Entered today (10% of portfolio). High conviction to add more.