Dewan Housing Finance - On Stable Footing; Result Update Q4FY15 ::Edelweiss

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Dewan Housing Finance: Strong performance:: Kotak Securities

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Strong performance. Dewan Housing Finance (DHFL) delivered strong earnings (up
28% yoy) on the back of healthy NII growth (37% yoy). High loan growth (28% yoy)
and yoy NIM expansion due to higher share of debt market borrowings are key drivers.
We expect earnings growth to remain strong at 18% CAGR and RoEs at 17% over
FY2015-17E. Despite its outperformance, DHFL’s valuations are attractive – 7.2X EPS
and 1.2X book FY2017E. Retain BUY

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Dewan Housing Finance - Growth Momentum Intact; Steady NIMs and Asset Quality; Result Update Q3FY15 :: Edelweiss, report

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Dewan Housing Finance - Opportune Prospects; Concerns Waning; Initiating Coverage :: Edelweiss

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Dewan Housing Finance: More from less :: Kotak Securities

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More from less. Our forecast of 22% loan-book CAGR in FY2014-17E for DHFL puts
the book at `814 bn by FY2017E. Our estimates are propelled by improving execution
and significant untapped mortgage demand. DHFL’s stable business model and 17%
medium-term RoE with negligible NPL risk make it an attractive long-term bid. We
expect a rerating on the back of the management’s efforts to address investor
concerns. We initiate coverage with a BUY rating and a target price of `540.

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Dewan Housing Finance Deposit: Lock into a 3-year option for high return:: Business Line,

With interest rates declining over the last one month, obtaining post-tax returns that also beat inflation is becoming tougher.

Given this backdrop, investors looking for higher returns may not get them without taking higher risks. Fixed deposit of Dewan Housing Finance is such an option.

Get 11.00% p.a. (11.50% for Senior Citizen) with AAA rated DHFL Fixed Deposit

Now as the Banks have already started reducing the interest rates, the high interest rates may soon be a thing of past. We have observed that most of the corporate have also reduced the Fixed Deposit Rates but in few FD schemes the rate cut is expected in next few days..

Before the interest rate cut We are pleased to provide you an opportunity to invest in “Aashray Deposit Plus” Fixed Deposit Scheme from Dewan Housing Finance Corporation Ltd (DHFL). This has been rated AA+ by CARE & FAAA by BWR. This indicates high degree of safety and Excellent credit quality. Instruments with this rating are perceived to carry very low credit risk. Please find the other details of the fixed deposit below:

Dewan Housing Finance Corporation Ltd has announced its Q4FY12 : Microsec Research

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Dewan Housing Finance Corporation Ltd has announced its Q4FY12 along with Annual FY12 result on 10^th May 2012.

On the quarterly basis, the company’s top line increased by 8.95% QoQ and 65.91% YoY to INR721.11 crores while, bottom line increased by 25.06% QoQ and 59.86% YoY to INR93.76 crores. For the whole year of FY12, the company’s top line increased by 52.96% YoY to INR3216.36 crores while, bottom line down by 1.62% YoY to INR323.77 crores.

Pressure in bottom line for full year of FY12 is seen mainly because of high cost of capital. The company has reported a 69.04% YoY increased in interest expenses to INR2349.55 crores.

The company has reported a 44% YoY growth in Housing loans sanctioned to INR12845.31 crores and a 39% YoY growth in loan disbursement to 9065.24 crores.

The Board of Directors have recommended a dividend @ 35% i.e. Rs.3.50 per equity share for the year ended 31^st March, 2012.

						Consolidated
Particulars	Q4FY12	Q3FY12	Q4FY11	QoQ(%)	YoY(%)	FY12	FY11	YoY(%)
Net Sales & other operating income	721.11	661.89	434.63	8.95%	65.91%	3216.36	2102.73	52.96
Operating Profit(Excluding OI)	648.00	579.08	373.72	11.90%	73.39%	2842.66	1832.05	55.16
OPM(%)	89.86%	87.49%	85.99%	237bps	387bps	88.38%	87.13%	100bps
PAT	93.76	74.97	58.65	25.06%	59.86%	323.77	329.10	-1.62
PAT(%)	13.00%	11.33%	13.49%	167bps	(49)bps	10.07%	15.65%	600bps
Diluted EPS	8.72	7.09	5.78	22.99%	50.87%	30.29	31.81	-4.78%
All data in Crores , EPS Represents Diluted EPS.

Regards,

Team Microsec Research

Technicals: Sundram Fasteners, Gammon Infrastructure, Bajaj Hindusthan, S.E. Investments, Symphony, JM Financial, Dewan Housing, :Business Line

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I am holding shares of Dewan Housing Finance bought at Rs 275 and JM Financial bought at Rs 35. Should I continue to hold or sell at current price?

Pragdas Mathuradas

Dewan Housing Finance Corporation (Rs 218.5): Dewan Housing still appears to be on strong foundation. It has key long-term support at Rs 155 and the stock bounced off the low at Rs 176 last December. Investors with long-term perspective can continue to hold the stock as long as it trades above this level.

If it manages to hold above Rs 176 in the upcoming months, investors can look forward to a rally to the previous peak at Rs 347 or even higher over the long term.

The near-term prospects for the stock are, however, under a cloud. Medium-term resistance for the stock is at Rs 280. Since the stock is reversing lower from this level, it can decline to Rs 175 or Rs 155 in the upcoming months. If your investment horizon is short-term, then exit the stock on a close below Rs 210.

JM Financial (Rs 13.5): This stock is in a vicious downtrend and it is advisable to switch over to some other stock. JM Financial recorded its long-term trough around Rs 19 in March 2009.

This trough was breached last September, and the stock is currently trading below this level. Since the stock is currently close to its multi-year low, it is hard to predict where the downward spiral can halt.

Immediate support for the stock is at Rs 11.6. If this level is breached, it may fall to Rs 5.1. Medium-term resistances will be at Rs 32, Rs 45 and Rs 65.

Please advise on the outlook for Symphony and S.E. Investments. Are these stocks worth holding?

Rakesh Duggal

Symphony (Rs 250.8): This stock moved out of wilderness, below Rs 20, in 2010 to move to the peak of Rs 334 in April 2011. Since then, the stock is moving sideways in a broad band between Rs 200 and Rs 300.

Long-term outlook is positive for the stock and investors can hold with stop at Rs 190. If the stock holds above this level, it will open the possibility of break out to Rs 400 over the next two years.

That said, breach of the support at Rs 190 will drag the stock down to Rs 168 or Rs 130. Therefore, investors should divest their holding on fall below Rs 190.

The medium-term trend in the stock is, however, sideways.

It could continue to oscillate in the band between Rs 200 and Rs 300. Investors with a shorter investment horizon should, therefore, exit the stock close to Rs 300 and look for buying opportunities near the floor of the current range.

S.E. Investments (Rs 319.9): This is an extremely volatile stock recommended only for the brave-heart. It is currently close to its long-term resistance between Rs 350 and Rs 400. S.E. Investments has reversed sharply from this band twice in the last two years.

Since the reversals can be very sharp giving little opportunity to investors to exit, it would be best to take some money off the table, if you have some in front of you.

Hold the rest with stop at Rs 285.

What is the long-term view on Bajaj Hindusthan?

R.N.B. Rao

Bajaj Hindusthan (Rs 29.2): Bajaj Hindusthan is hardly in a sweet spot, wallowing close to eight-year low. Needless to add that the long-term view on the stock is currently down.

Decline below the December 2011 low at Rs 24 will take the stock below the Rs 10 mark.

The stock needs to do a lot of work before it moves to a position of relative stability. The first requirement would be a strong close above Rs 60.

Investors with lower risk-taking ability should exit the stock at current juncture and consider re-investing on a strong close above Rs 60. Subsequent medium-term targets would be Rs 93 and Rs 136.

Long-term outlook for the stock will turn positive only on weekly close above Rs 200. Inability to move beyond this level will keep the stock in the Rs 25-200 band for a few more years.

I am holding shares of Gammon India purchased at Rs 123. Please advise on the prospects of this stock.

P.M. Rao

Gammon India (Rs 44.4): Gammon India has given up all the gains recorded in the 2009 rally and is currently trading near its 2009 trough. The trend across time frames — long, medium and short — are currently down for this stock.

Investors can hold the stock with stop at Rs 40. But given the fact that many stocks are currently trading well below their 2009 lows, the stock can head lower to Rs 33 or Rs 19 in the upcoming months.

Resistances in the upcoming months will be at Rs 130, Rs 180 and Rs 271. The long-term trend will, however, turn positive only if the stock manages a close above Rs 270.

Please advise on the future outlook of Sundram Fasteners.

Sajahan

Sundram Fasteners (Rs 53): Sundram Fasteners faces strong long-term resistance in the zone between Rs 65 and Rs 75.

The rally from 2009 lows halted in this zone and the stock is currently consolidating in the band between Rs 45 and Rs 65. Key long-term supports for the stock are at Rs 44 and Rs 36.

If the stock manages to hold above Rs 44, it will denote the propensity to break out higher to Rs 85 or Rs 94 in the next couple of years.

Dewan Housing Finance: Buy : Business Line

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Dewan Housing Finance Reco: ACCUMULATE :: Emkay PDF link

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Company Update

Dewan Housing Finance Reco: ACCUMULATE CMP: Rs 253 Target Price: Rs 283 Capital infusion as expected ·      DHFL raises Rs3bn via QIP (1.3x/7.6x 1-yr forward standalone PB/PE) resulting in EPS dilution to the tune of 12% for FY12E. FY12/FY13 BV est. stands increased by 5%/3% respectively ·      Capital infusion to augment business growth. Expect 38% loan CAGR aided by improved economic sentiments, niche target audience and expectations of easing interest rates ·      Consolidation of FBHF with DHFL remains well on track. NHB regulations on uniform interest rates / withdrawal of pre-payment penalty clause have had minimal impact on growth ·      Immense growth potential with stable asset quality & return ratios reaffirms +ve stance. However, with FY12/FY13 cons. ABV at 1.3x/1.2x, upsides seem capped. Downgrade to ACCU.

Click here to read report: Company Update

Q3FY12 Result Update :: Sintex Industries; South Indian Bank; Dewan Housing Finance :: Emkay

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Q3FY12 Result Update (January 17, 2012)

Result Update Sintex Industries Ltd Reco: BUY CMP: Rs 70 Target Price: Rs 93 Cut earnings; maintain buy on valuations ·      Sintex’s 3Q12 APAT was lower than est. due to lower monolithic (25% yoy revenue decline and fall in EBITDA margins) and subsidiaries performance (59% drop in PAT) ·      Given FCCB repayment next year and working capital requirements increasing, Mgmt in the call sounded cautious on growth and has reserved its comments on FY13E for now    ·      Working capital has gone up by Rs2.5bn vs. Sep11 (mainly due to monolithic), cash has gone down by Rs1.9bn vs. sep11 and debt remains at the same level. We Adj. FY12 capex to Rs4bn vs. Rs5bn earlier….   ·      Estimates cut by 23/28% for FY12/13E. Current valuations pricing in negatives - free cash-flow, part FCCB repayment likely through debt, business momentum. Maintain buy with revised TP of Rs93/Share   South Indian Bank Reco: HOLD CMP: Rs 23 Target Price: Rs 25 Risk to margins; Downgrade to HOLD ·      SIB’s Q3FY12 results inline with expectation with NII at Rs2.7bn and Net profit at Rs1.02bn. The growth was also aided by 20.4%yoy growth in Non interest income to Rs599mn ·      The NII grew by 33.5%yoy to Rs2.7bn led by strong ~30.6%yoy growth in advances, and 8bps qoq expansion in NIM’s to 3.05% ·      High concentration of gold loan at 26% of the book, a concern. Change in mgmt strategy to shift focus from gold loan to corp loan, could put pressure on margins ·      Elevated risks coming out of concentration in gold loan portfolio in terms of loan growth as well as NIMs. Downgrade to HOLD with revised PT of Rs25 Dewan Housing Finance Reco: BUY CMP: Rs 205 Target Price: Rs 275 Growth momentum continues ·      Dewan Housing Q3FY12 NII at Rs1.8bn and PAT at Rs750mn – as expected. Healthy loan growth with improvement in asset quality reaffirms our +ve stance on the business model ·      40%+ growth in sanctions/disbursements depicts resilience to interest rates / property prices. Higher dependence on bank term loans remains a key catalyst ·      First Blue Home Finance (FBHF) – Inorganic growth well on track with 18% loan growth, improved leverage and stable asset quality. Merger of DHFL+ FBHF around the corners ·      Strong business model with immense growth potential, stable asset quality and decent return ratios remain key positives. Maintain BUY with target price of Rs275