1. Abhishek bansal

    Abhishek bansal New Member

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    Hello Friends,

    I want to get your views on valuations of DHFL. Why it is trading at deep discount to it's peers. My guess is that it does't have significant competitive advantage as it mainly competes with big boys like HDFC, SBI, ICICI, etc. Also it's cost of capital is probably higher than it's competitors. On other hand, Repco is mainly working in rural and un-organised sectors, where big boys don't want to compete and hence it's valuation is justified.

    However, I still feel DHFL should prove to be a great buy at these valuations. Any thoughts..
     
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  2. w4wealth

    w4wealth Well-Known Member

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    definitely attractive valuation . long term buy.
     
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  3. prashant

    prashant Active Member

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    Dear abhishek,
    DHFL has been a value buy for very long and thats how RJ took position at 160 and it roared to 400+ and it looked like market gave its due.
    But Unfortunately its never understood whys it always tend to trade at huge discount compared to its peers .

    Thanks,
    Prashant
     
  4. bholu

    bholu Active Member

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    This is because of standard of corporate governance. Look at its competitors, Gruh Finance backed by HDFC, Canfin Homes by Canara Bank, Repco is also promoted by a financial institution. Both DHFL and India Bulls are privately owned and hence market values them at lower rates.
     
  5. BombayBoy

    BombayBoy Well-Known Member

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    because of the HDIL link - Wadhawan Group, though they went their separate ways
     
  6. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Huge loss is there in DHFL Stock is sinking now. I have big quantity :(
     
  7. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    All stocks heavily down. Big loss is there.
     
  8. BombayBoy

    BombayBoy Well-Known Member

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    but quality stock, undervalued, old favourite - conviction shattered with a 5-10% move?

    will wait for your next post about quality stock bought more, sooper gains are there
     
  9. Farhan Ghumra

    Farhan Ghumra Active Member

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    Profit growth and ROE of Indiabulls is better than DHFL and PE ratios are also closer, so which is better between them?
     
  10. Arvind2k

    Arvind2k Member

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    Indiabulls H
    Indiabulls Housing Finance..
     
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  11. Farhan Ghumra

    Farhan Ghumra Active Member

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  12. Arvind2k

    Arvind2k Member

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    Not sure about these lines in Motilal Oswal report "Collection efficiency too should improve due to minimizing cash transactions between builders and home buyers. Thus, this will not only improve asset quality, but also lower operating expenses."

    I feel there will be cash crunch for the next 1-3 months .. Customers will not able to make payments on time just because of lack of currency conversion. More important thing is how the earning capacity of these borrowers gets affected in mid to long term. In fact I think black money might also be subsidizing few things or creating some employment at low level.
    Having said above,borrowers repayment capacity as well as earnings capacity would be impacted only in short to mid term and hopefully in long run it would get back to new normal.
    MFIs and businesses who survives or handles this short & mid term impact most efficiently will reap benefits.

    But still, I like Indiabulls Housing Finance for their consistent ROE and track record !!!!!

    If you look at all the Block deals happened for the past 2 months, people have accumulated Indiabulls Housing Finance at the range 800-850 odd price .. I feel 1150-1250 odd levels can be achieved in the next 4-6 months time frame.

    Block Deals

    Indiabulls Hsg Block Deal on NSE, Qty: 100,110, Deal Price: 676.15, Value (cr): 6.77, on Nov 11, 2016

    Indiabulls Hsg Block Deal on BSE, Qty: 156,963, Deal Price: 805.90, Value (cr): 12.65, on Nov 07, 2016

    Indiabulls Hsg Block Deal on NSE, Qty: 700,249, Deal Price: 857.00, Value (cr): 60.01, on Oct 26, 2016

    Indiabulls Hsg Block Deal on BSE, Qty: 126,017, Deal Price: 845.45, Value (cr): 10.65, on Oct 17, 2016

    Indiabulls Hsg Block Deal on BSE, Qty: 60,000, Deal Price: 845.75, Value (cr): 5.07, on Oct 10, 2016

    Indiabulls Hsg Block Deal on NSE, Qty: 100,118, Deal Price: 862.00, Value (cr): 8.63, on Oct 04, 2016

    Indiabulls Hsg Block Deal on NSE, Qty: 300,798, Deal Price: 849.00, Value (cr): 25.54, on Oct 03, 2016

    Indiabulls Hsg Block Deal on NSE, Qty: 301,340, Deal Price: 811.75, Value (cr): 24.46, on Sep 27, 2016

    Indiabulls Hsg Block Deal on NSE, Qty: 262,086, Deal Price: 807.60, Value (cr): 21.17, on Sep 26, 2016

    Indiabulls Hsg Block Deal on NSE, Qty: 410,309, Deal Price: 808.45, Value (cr): 33.17, on Sep 23, 2016
     
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  13. adi16

    adi16 Member

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    I agree, also IBHF should be able handle any asset quality impact due to demonetization. It's a formidable player..
     
  14. RectangularPaper

    RectangularPaper New Member

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    Near term and Mid term will be volatile as NBFCs and housing finance will have an impact. Will have a wait next few months to understand quantum of impact. Also DHFL is cheap and good stock to own.

    Disc: I do not own them for now but will surely want to accumulate.
     
  15. Arvind2k

    Arvind2k Member

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    Indiabulls Housing Finance

    Another Block deals today !!!

    Indiabulls Hsg Block Deal on NSE, Qty: 493,310, Deal Price: 730.05, Value (cr): 36.01, on Dec 07th

    Indiabulls Hsg Block Deal on NSE, Qty: 250,522, Deal Price: 730.20, Value (cr): 18.29, on Dec 07th
     
  16. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    DHFL is shooting up 6.14% to Rs 603. I have big lot :)
     
  17. kharb

    kharb Well-Known Member

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    I am also holding it for last many years and has been multibagger for me;I also mentioned it as My Top Diwali Pick for last both Diwali ;I hope members might have been benfited
     
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