Dewan Housing Initiating Coverage Research Report By IndiaNivesh

DHFL is a play on the high growth Indian housing finance industry, which is driven by rising income levels, growing urbanization, and low penetration of housing finance and shortage of housing. We like DHFL due to its consistent loan growth, stable NIM, strong asset quality, better capital adequacy, improving return ratios and reasonable valuations. At CMP of Rs 467/-, as per our estimates, DHFL is trading at P/ABV of 1.2x and 1.1x for FY16E and FY17E, respectively which is the cheapest among its peers. We recommend ‘BUY’ rating on the stock with target price of Rs 630/- (P/ABV of 1.5x for FY17E).

Dewan Housing Finance Corp Initiating Coverage Report