Motilal Oswal research report dated 19 10 2015, recommends buyMotilal oswal report Gruh finance 19 10 2015.pdf (373.0 KB)
Valuation and view: GRHF has performed impressively and delivered CAGR loan
book growth of 29% between FY10 and FY15, coupled with 24% net profit growth.
The company’s presence in affordable housing segment in rural areas provides
pricing power on the asset side, with cost of funding at par with large HFCs, low C/I
ratio and impeccable asset quality expected to drive earnings growth in near to
medium term; we expect a strong 28%/25% loan growth/earnings growth for the
next three years. We marginally cut our FY16/17 estimates by 2% to factor in
higher opex and credit costs. Buy
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