Moneycontrol Be a Pro
Get App
you are here: HomeNewsBusiness
Last Updated : Apr 02, 2018 10:16 AM IST | Source: Moneycontrol.com

Buy DHFL, earnings growth likely to be over 28%: Angel Broking

We expect the company’s loan growth to remain 23 percent over next two years and earnings growth is likely to be more than 28 percent. The stock currently trades at 1.9x FY2019E ABV.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

By Amarjeet Maurya

Sr. Equity Research Analyst, Mid-Caps at Angel Broking

Backed by healthy capital adequacy and increasing demand for home loans, Dewan Housing Finance's loan book is expected to report 23 percent growth over next two-three years.

DHFL sold 50 percent stake held by it in DFHFL Pramerica Life Insurance Co Ltd which added Rs1,969 crore to its net worth and increases its CAR by 400 bps, to 19.3 percent which should fuel growth for next 2-3 years.

Close

Strong NIM on the back of lower cost of funds and lower credit cost will ensure healthy return ratios for the company. Despite strong growth, the company has maintained stable asset quality and we expect the trend to continue.

Dewan Housing Finance Ltd: Rating: Buy | Target: Rs 720 | Return 41%

We expect the company’s loan growth to remain 23 percent over next two years and earnings growth is likely to be more than 28 percent. The stock currently trades at 1.9x FY2019E ABV. We maintain Buy on the stock with a target price of Rs720.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Apr 2, 2018 10:16 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant
Make every wish come true
10% CashBack on Apparel
10% CashBack on Electronics
Swipe & Win iPhone 11 every hour