Dewan Housing Finance Corporation Ltd (DHFL) Initiating Coverage Report By Angel Broking

Dewan Housing Finance Corporation Ltd (DHFL) is the third largest housing finance company in India with a market share of ~4%. With a focus on the low and medium income (LMI) consumer segment, the company has increased its presence in tier-II & III cities where the growth opportunity is immense. With strong asset quality and healthy return ratios, the company is all set to witness its next leg of growth.

DHFL is the 3rd largest private sector housing finance company with a scalable business model: Given the present declining interest rate scenario, the housing finance industry is likely to emerge stronger. After delivering 39% AUM CAGR over FY2010-15, we expect DHFL to grow at a CAGR of 20% over FY2015-18, as demand for housing in the middle & low income group is expected to pick up,
which is the focus area for the company. Backed by stable asset quality and firm margins, DHFL has reported a 32% CAGR in PAT over FY2010-15 and we expect the same to grow by 21.3% (CAGR) over FY2015-18.

Angel Broking Research Dewan Housing Finance Corporation IC 050416