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Dewan Housing Finance Corporation Ltd Stock Analysis

Small Cap
Evaluated by 4845 users | BSE: 511072 | NSE: DHFL |
Finance - Housing
Dewan Housing Finance Corpn, founded by Rajesh Kumar Wadhawan on 11th of April 1984 with its registered office in Mumbai, provides access to housing finance to lower and middle income Indians. It is the second housing finance company set up in India.Initially DHFL disbursed funds from its own...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Dewan Housing Finance Corporation Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)1,4492,4684,0614,9665,9797,2958,85210,85012,8849,322
Y-o-Y Gr. Rt.-70.3%64.6%22.3%20.4%22%21.3%22.6%18.7%-27.6%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
12.6913.1117.6220.621.3224.9992.4939.53-33.01-433.76
Y-o-Y Gr. Rt.-3.3%34.4%16.9%3.5%17.2%270.1%-57.3%-183.5%NA
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
74.0186.63125.7138.56158.52167.13255.1293.38256.8-177.28
Y-o-Y Gr. Rt.-17.1%45.1%10.2%14.4%5.4%52.6%15%-12.5%-169%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)1.991.61.581.331.261.193.621.25-0.98-14.57
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Dewan Housing Finance Corporation Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income23%9.3%1.7%-27.6%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
-248.1%-282.7%-267.4%NA
Book Value per Share
-210.2%-202.3%-188.6%-169%
Share Price -11.3% -31.5% -61.8% 82.2%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0.100.460.520.680.580.580.5600
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >14% : Very Good
  • 12%-14% : Somewhat Good
  • <12% : Not Good
Capital Adequacy Ratio (%)19.3917.4216.5217.1616.5616.7419.1215.2900
Margins
Net Profit Margin (%) 18.2912.4111.1310.6510.391032.7211.43-8.04-146.02
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 21.9617.1617.2215.615.215.3645.0314.43-12-1090.99
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 39.21%
Institutions 5.92%
Non-Institutions 54.87%
Pledged *0.000.000.000.000.00100.00100.00100.00100.00100.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Dewan Housing Finance Corporation Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Dewan Housing Finance Corporation Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Dewan Housing Finance Corporation Ltd's performance infers:

Dewan Housing Finance Corporation Ltd earnings have declined by -282.7%, whereas share price has depreciated -31.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Dewan Housing Finance Corporation Ltd share prices over the last 10 years. Here is what we found out:

Dewan Housing Finance Corporation Ltd share price has depreciated -13.7% annually over the past ten years.

Dewan Housing Finance Corpn, founded by Rajesh Kumar Wadhawan on 11th of April 1984 with its registered office in Mumbai, provides access to housing finance to lower and middle income Indians. It is the second housing finance company set up in India.

Initially DHFL disbursed funds from its own equity contribution and had a return on equity of less than 8% at a time

Dewan Housing Finance Corpn, founded by Rajesh Kumar Wadhawan on 11th of April 1984 with its registered office in Mumbai, provides access to housing finance to lower and middle income Indians. It is the second housing finance company set up in India.

Initially DHFL disbursed funds from its own equity contribution and had a return on equity of less than 8% at a time when the interest rates were about 18%. Over two decades later, DHFL is still profitably doing what its founder intended it to do. It has so far disbursed loans amounting to over 53 billion, its non performing assets are the lowest in the Industry.

Today, DHFL has an asset base of over Rs 3,580 crores, with a strong presence across India through its 72 branches and 116 service locations. DHFL caters to a large section of Indians working in the Middle East through its over seas branch in Dubai.

In June 2010, DHFL and its subsidiary DHFL Vysya Housing Finance have promoted a housing finance Company under the name and style 'Aadhar Housing Finance” (AHFL). AHFL, in the initial period propose to target market in retail housing loans in the low income segment of the Indian population in certain states.

In December 2010, Dewan Housing Finance Corporation acquired Deutsche Postbank Home Finance for Rs 1079 Crore.

Products:

  • Home Loans
  • Home Extension Loan
  • Home Improvement Loan
  • Home Loans for NRI's
  • Plot Loans
  • Mortgage Loan
  • Non Residential Property
  • Home Loan Linked - Insurance Plan
  • Reverse Mortgage
  • Fixed Deposit

Subsidiary:

  • DHFL Vysya Housing Finance (DVHFL) – A housing finance company registered with NHB and has operations in the states of Karnataka, Andhra Pradesh, Tamil Nadu and Maharashtra
  • DHFL Property Services is a 100% subsidiary of the housing finance company.

Achievements/ Recognition:

1991 - Udyog Gaurav Award                                                                                                            

1992 - Housing company of the Year                                                                                                

1995 - Udyog excellence Awards                                                                                                      

2002 - Rashra Nirman Ratna Awards, Young Achiever Awards (Accommodation Times) and Housing Company of the Year                                                                                               

2004 - Corporate Social responsibility Award and Best Customer Service HFI's Property (5th Housing And Real Estate Exhibition) Project Crayon                                                              

2007 - Award of Appreciation (Maharashtra Chamber Of Housing Industry), SRS Real Estate & Infrastructure Award for National Excellence, Excellence in Design among HFI's at Property Expo April'07 and October ’07 by Maharashtra Chamber of Housing Industry.

2008 - Silver CIO Award'08 by - CIOL Dataquest Enterprise Connect Awards                            
2010
-DHFL’s HR team win Global Greentech Award for Technology Excellence in HR
-India’s Top 100 Best Companies to work for – Great Place To Work Institute, India in Association with Economic Times

2010-2011
-DHFL Wins “Realty Plus Newsmaker of the Year-2011
-2nd Asia’s Best Employer Brand Award for Excellence in HR through Technology
-DHFL is now Power Brand amongst the top 200 brands in India by M/S Planman Marcom

2011-2012
-DHFL wins Greentech HR Excellence Award – 2012 for Best Strategy (Gold Award)
-DHFL among India’s 50 Biggest Financial Companies in India

2012-2013
-The Greatest Corporate Leaders of India – Leadership Awards in Financial Services
-DHFL is among most trusted Financial Brands in India – Brand Trust Report
-DHFL’s Marketing Head Wins – Super Achievers Award, at 11th Indira Super Achievers Awards for Professional Excellence
-DHFL’s Group Head, Human Resources wins HR Warrior Awards – Making a Difference 2012
-DHFL wins Marketer of Year – Realty Plus Excellence Awards of the Year – 2012

2013-2014
-DHFL honoured with the Excellence in Innovative Marketing Award at MCHI – MMR & BKC Expo
-DHFL’s CEO was presented with the Udyog Rattan Award
-DHFL conferred the BEST EMPLOYER BRAND AWARD at IPE BFSI Awards

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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