Dewan Housing Research Report By Motilal Oswal

Dewan Housing continues to perform well on growth, margins and asset quality fronts. We expect the loan growth to remain healthy at a CAGR of ~23% over FY15E-17E. Margins continue to hold well thus demonstrating pricing power. Asset quality remains among the best, with GNPAs of just 80bp and almost zero net NPAs. Strong visibility on business growth and margins, superior asset quality, healthy provision cover and healthy return ratios are key positives. The stock trades at an attractive valuation of 1.1x/0.9x FY15E/16E BV. Maintain Buy with a target price of INR540 (1.5x FY16E BV).

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