Dewan Housing is a good bet and can test Rs 270 over next 12 months, says Lancelot D`Cunha, CEO, Sharyans Wealth Management.
D`Cunha told CNBC-TV18, "Dewan Housing is a good pick. It just came out with very interesting numbers yesterday. What I have seen is a loan book has expanded to by almost 40% to about Rs 24,474 crore. This has happened with minor moderation in the net interest margins which have been around 2.8% which is very good in a high interest rate scenario."
He further added, "We have also seen NPAs come down to 0.89% from 0.97%. Because Dewan Housing is focusing primarily on the low income segment you will see demand expanding because as more and more people get into this segment you will find the loan book growth expanding and there is very little competition in the rural and semi rural market. This is why I believe Dewan has sustainable long term edge. Given that it is trading at about 1.2 times its book value I would see it trading at about 1.5 times to give it a target price of Rs 260 over the next 12 months."
