See 20-22% returns in GIC Housing: SP Tulsian

He further added, “If we go by the financials of the company EPS of more than Rs 20 that makes the stocks to rule at PE of 4, book value of more than Rs 100 and if I take the book value at the end of FY12 it will slightly be higher, so that makes the stock to rule at a price to book of 0.9.”

“If you see the dividend yields because 55% dividend which has been declared by the company last year, they have always been liberal in distributing the good dividend because of EPS of 20 plus being posted by the company every year. So 55% dividend that is Rs 5.50 gives a dividend yield of close to about 6%.”

“If you go by the quarter one performance I think there looks to be more or less on the track. They should be able to again post an EPS of 20 plus and the kind of fall or correction in fact which we have been witnessing in the real estate properties if not in the metro cities like Mumbai and NCR region or the Bangalore and all but other pockets of the country are showing the decline in the real estate prices, which will ultimately eventually attract the middle income groups to go for the housing finance or may be for the housing and than that will give them a robust business. So topline of Rs 400 crore and EPS of 20 plus, all these makes a sound investment and one can expect a return of may be about 20% to 22% on an annualized basis even if it is held for may be 2-3 years time horizon."