Sep 29, 2017

Reliance Home Finance: Be and Make


Reliance Home Finance, carved out of Anil Ambani-promoted Reliance Capital Ltd and this mid-sized housing finance is 51 percent owned by Reliance Capital, after completing demerger from the Ambani’s financial services Rel Capital.
Reliance Home Finance had assets under management worth Rs 13,022 crore as of June 30 2017. Home loans and affordable housing loans contributed 35 percent and 19 percent of its portfolio, respectively, while riskier segments like loan against property and construction loans accounted for 22 percent and 24 percent. About 78 percent of its loans are disbursed to self employed individuals and the rest to the salaried.
The company has seen its assets under management grow at over 40 percent in four years to March, according to an August investor presentation. It targets a loan book of Rs 50,000 crore in the next three to five years.
Shareholding pattern:
While net interest margins have improved sequentially in the year to March, they have come down from 4 percent-plus levels in the last few financial years on rising pressure on yields and increased lending to low-yield segments and affordable housing. It’s comparable to its peers, with only Indiabulls Housing Finance Ltd. and Repco Home Finance Ltd. having margins higher than 4 percent. Gross bad loans – not repaid for 90 days – stood at 0.8 percent of its total advances. Based on analysts’ calculations of Rs 40 book value per share, a debut at Rs 120-137 will value the stock at 3-4 times its book value for the past 12 months. This would imply a market capitalisation of close to Rs 6,000 crore.
At the CMP the stock is trading at Rs.93/- and at market cap of 4500cr gives a wonderful opportunity to the long term investors.
Download the report in pdf: Reliance Home Finance_RHFL_Beandmake
Key negatives of the company:
1.      Reputation and fairness of the ADAG group
2.      Stock is under BE group i.e., trade to trade group hence no immediate price action can be seen.

With thanks
Be and make





Note: The above article is not a research report but it is a information as available on public domain and it should not be treated as a research report. It is just a study which I/we observed and recording them as a dairy of mine/us.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i/we might have positions in my/our portfolio and hence my/our point of view can be biased. Readers should consult their financial advisory before any investments.

Jul 12, 2017

Emami infra_Be and make(CMP167/-): Must have in portfolio!

Real run as yet not began...
Yes, emmami infra has delivered a decent returns but the real story has to unfold.
Amalgamation of Zandu reality, recent central regulations on realty sector are likey to be the game changers... 
Consider its valuations right now,
Mcap of around 400crs is very attractive and emami infra likely to post more than 1000cr top line in FY18 and huge land bank at Madurai, Coimbatore and Kolkata adding cream to the cake.
Parent group has a mcap of around 20,000+crs and their ability and reputation to build a brand shall be considered.
So, it is the story seems to be like the Godrej properties...
Advance wishes to all the investors.

Note: The above article is not a research report but it is a information as available on public domain and it should not be treated as a research report. It is just a study which I/we observed and recording them as a dairy of mine/us.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Disclosure: It is safe to assume that i/we might have positions in my/our portfolio and hence my/our point of view can be biased. Readers should consult their financial advisory before any investments.