Check Before You Invest : Reliance Home Finance Ltd

BSE: 540709 NSE: RHFL ISIN: INE217K01011

| Sector: BFSI | Industry: Finance - Housing

Snapshot

Q.1 Which industry/sub-sector does Reliance Home Finance Ltd belong to?

Reliance Home Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.

Q.2 Is Reliance Home Finance Ltd a good quality company?

Reliance Home Finance Ltd is a quality company, based on a 0-year financial track record.

Q.3 Is Reliance Home Finance Ltd undervalued or overvalued?

Reliance Home Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Reliance Home Finance Ltd a good buy now?

Reliance Home Finance Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Reliance Home Finance Ltd?

Reliance Home Finance Ltd Operating Income growth is % for FY-, which is below its --year CAGR of N/A%, indicating slower growth.

Q.2 Total Asset growth of Reliance Home Finance Ltd?

Reliance Home Finance Ltd Total Asset growth is 3.17% for FY-, which is above its 0-year CAGR of -6.03%, indicating faster growth.

Q.3 Capital Adequacy ratio of Reliance Home Finance Ltd?

Reliance Home Finance Ltd Capital Adequacy ratio (CAR) is -3992.56% for FY-, which is below the regulatory requirement of 15%, indicating adequate capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Reliance Home Finance Ltd?

Promoters hold 0.74% of the Reliance Home Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Reliance Home Finance Ltd vs Industry Peers?

Reliance Home Finance Ltd AUM CAGR is %, compared to the 0-year industry median CAGR of 4.02%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Reliance Home Finance Ltd vs industry peers

Reliance Home Finance Ltd profit metrics are below the industry median level of 10.39%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	0-year Industry Median
NPM%	-	17.47
PPOP%	-	11.85
RoA%	-	1.85

Q.3 Operating efficiency of Reliance Home Finance Ltd vs industry peers?

Reliance Home Finance Ltd ROCE () is below the industry median of (8.9); while the current ROE (5.2) are below than the 5-year average Industry ROE (13.55). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	0-year Industry Median
NPM%	-	17.47
PPOP%	-	11.85
RoA%	-	1.85
ROCE%	-	8.9
ROE%	-	13.55

Valuation & price assessment

Q.1 Stock return of Reliance Home Finance Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of -5.73% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-5.7%	-14.1%	-38%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	0-year Historic Median	0-year Industry Median
Price to Earnings	-	10.50	-
Price to Book	-	0.53	-
Price to Sales	-	1.30	-
EV to EBITDA	-	7.73	-

Q.4 Valuation ratios of Reliance Home Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0% is lower than its historical median of 0.53%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Reliance Home Finance Ltd return on invested capital (ROIC) is % for FY-, is - than its estimated weighted average cost of capital (WACC) of %, indicating -.

Check more companies

1. LIC Housing Finance

2. PNB Housing Finance

3. Aadhar Housing Fin

4. Sammaan Capital

5. Aptus Value Housing

6. Home First Finance

7. Can Fin Homes

8. Aavas Financiers

9. India Shelter Fin.

10. Repco Home Finance

Check trending companies

1. Force Motors Ltd.

2. KEI Industries Ltd.

3. Aadhar Housing Finance Ltd.

4. State Bank Of India

5. Power Finance Corporation Ltd.