Buy Dewan Housing Finance - Emkay - Q3FY12 Result Update

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.

Source : Equity Bulls

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