Scrip Watch

Scrip Sanctuaries for protection from the wildlife in this jungle of Indian Equities

Dewan Housing Finance Corporation Ltd. (DHFL)
Housing Finance
FV – Rs 10; 52wks H/L – 690/97; TTQ – 16.44 Lacs; CMP – Rs 111.60 (As On June 5th, 2019);                      
Market Cap – Rs 3502.26 Crs

 

Consolidated Financials and Valuations (Amt in Rs Crs unless specified)

 
Equity Capital

Net worth
Long Term Debt
Total  
Sales
PAT
BV
(Rs)

 EPS (Rs)

 P/E

Industry P/E

P/BV

Promoter’s
Stake
Beta
FY18 314 8556 70482 10529 1166 272.5 37.1 3.0 24.9 0.4 39.0 2.37
FY19 314 10715 45458 9936 1187 341.2 37.8 2.95 24.9 0.3 39.2 2.37

 

Management:

 Mr. Kapil Wadhawan: Chairman and MD

Mr. Harshil Mehta: Joint MD and CEO

 

Overview:

  • Dewan Housing Finance Corporation Ltd.(DHFL) is a deposit-taking housing finance company, headquartered in Mumbai with branches in major cities across India.
  • For over three decades, DHFL has been providing easy access to affordable Housing Finance to realise home-ownership aspirations of millions of Lower and Middle income families in semi-urban and rural India.

 

Consolidated Financial Trends

  FY19 (Q3) FY 18 FY17 FY16 FY15 FY14 FY13 FY12
Equity Paid Up 314 314 313 292 146 128 128 117
Networth 10715 8556 7731 5390 4636 3575 3237 2033
Total Debt 45458 79296 71268 51556 40526 33890 876 934
Net Sales 9921 10515 8907 7324 5979 4968 4123 2468
Other Income 15 14 6 5.1 2.7 2.1 18 2
PAT 1187 1166 2806 749 621 529 452 306
Book Value (Rs) 341.2 272.5 247.0 184.6 317.5 279.3 252.9 173.8
EPS (Rs) 37.8 37.1 89.6 25.7 42.5 41.3 35.3 26.2

 

News and Notifications

On 6th June, 2019 Dewan Housing Finance Corporation Ltd. shares fell 15 percent intraday to hit five-and-half-year low on June 6 as rating agencies downgraded the rating on the commercial papers after the company defaulted on debt repayment.

The stock dropped into double-digit levels for the first time since February 4, 2019 and hit an intraday low of Rs 94.90, the lowest level since December 2013.

It has lost 86 percent of its value from the record high of Rs 690 touched on September 3, 2018. It was quoting at Rs 98.65, down Rs 12.95, or 11.60 percent on the BSE, at 9:30 Am.

Domestic rating agencies ICRA and Crisil, on June 6, downgraded the rating on Rs 850 crore worth of commercial paper of DHFL to ‘default’ from ‘A4’ due to the mortgage lender’s deteriorating liquidity condition.

Dewan Housing Finance (DHFL) had missed Tuesday’s interest payment deadline on a set of outstanding bonds, but the embattled company was in talks with financiers to help meet its Rs 1,000-crore-plus obligation within the seven-day grace period and prevent a default.

Multiple market sources stated that UTI Mutual Fund and some private sector lenders, including Axis Bank and IndusInd Bank, were among the investors that bought DHFL debt sold last year. Some individual investors are also said to have invested in these.

DHFL has been facing a cash crunch since September, when IL&FS defaulted on its payment obligations. The home financier has so far taken a two-pronged approach to raise money.

While it has been in talks with international private equity players to sell the promoter stake strategically, it has also been selling down loan portfolios.

Since the NBFC liquidity crisis began in September, DHFL has sold retail loans worth about Rs 30,000 crore via securitisation. In this period, the home financier has paid about Rs 40,000 crore of financial obligations.

 

  1. https://www.moneycontrol.com/news/business/markets/dhfl-icra-crisil-downgrade-default-4067641.html
  2. https://www.news18.com/news/business/dhfl-shares-crack-18-to-hit-over-5-year-low-after-crisil-icra-downgrade-ratings-2174315.html
  3. https://economictimes.indiatimes.com/markets/stocks/news/dhfl-fails-to-pay-rs-1000-crore-interest-on-bonds/videoshow/69661490.cms
  4. https://economictimes.indiatimes.com/markets/expert-view/not-prudent-to-exit-dhfl-now-kaustubh-belapurkar-morningstar/articleshow/69671265.cms

 

 Major Non-Promoter Holdings

Non – Promoters No. of Shares held % shares held
 Bnp Paribus Arbitrage 7393538 2.36
East Bridge Capital Master Fund Ltd 4392737 1.40
Government Pension Fund Global 3750041 1.19

 

 

 

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