Dewan Housing Finance Corporation Limited (DHFL) is a housing finance company that offers credit/loan facilities and also accepts deposits. In the last 3 decades, DHFL has enabled homeownership across Tier 2 and Tier 3 cities in India.
The market capitalisation of Dewan Housing Finance Corporation Limited (DHFL) as of August 9, 2018, was a little over Rs.19,217 crore.
Company’s Wealth and Recent Performance
- For the financial year 2017 – 2018, the income earned from operations stood at Rs.10,450.16 crore, which is higher than the previous year’s Rs.8,851.76 crore. This is a growth rate of 18.06%, which was influenced by the increases in the loan book.
- Other revenues earned added up to Rs.14.29 crore for the financial year 2017 – 2018. This is higher than the last financial year’s Rs.5.47 crore.
- For the quarter ended March 31, 2018, the total income earned from operations was Rs.2,808.17 crore. The profit before tax and exceptional items was Rs.479.87 crore.
- For the quarter ended December 31, 2017, the total income earned from operations was Rs.2,634.24 crore. The profit before tax and exceptional items stood at Rs.461.74 crore.
- The operating profit earned, before depreciation, exceptional items and tax, for the 2017- 2018 was Rs.1,784.25 crore when compared to the previous year’s Rs.1,425.69 crore. This was a rise in profit by 25.15%.
- For the financial year 2017 – 2018, the Profit Before Tax (PBT) and exceptional items went up by 25.26%, standing at Rs.1,756.62 crore.
- For the financial year ended March 31, 2018, other expenses such as administrative costs went up by 13.85%, reaching Rs.338.66 crore.
- The loans sanctioned for the quarter ended March 31, 2018, increased by a 66% and the disbursements registered a growth of 57%.
- For the financial year ended March 31, 2018, the total number of loan disbursements made were Rs.44,800.31 crore.
Dewan Housing Finance Corporation Stock Trends in 2018
- On January 1, 2018, the price of a DHFL stock was Rs.582. In the following days, the price inclined, influenced by the payment of interest and other favourable market conditions, reaching Rs.625 on the 9th.
- In February, the prices fell downwards and after the two-day DHFL Griha Utsav, the price slumped to Rs.504.90 on the 8th. By the 26th, the price again went up to Rs.581.45.
- With a downside on the Nifty and a low performance of NBFC stocks, the price per share went down to Rs.496.70 on March 9, 2018.
- On April 2, 2018, the price of the scrip stood at Rs.515.10. In the next few days, an inclining trend was seen and by the mid-month, the price went up to Rs.595.90 on the 19th.
- On May 2, 2018, the price rose exponentially to reach Rs.646.90. Over the course of the month, the prices fell gradually, reaching Rs.606.25 on the 24th.
- Throughout June, the scrip price lingered a little over Rs.600. On the 27th, the cost per share was Rs.645.50.
- On July 1, 2018, the markets opened at the price of Rs.643 and by the 16th, the price went down reaching Rs.600.90. The price picked up by the 18th, reaching Rs.618.10, remaining steady during the last half of the month.
- On August 1, 2018, the price per share was Rs.601.65 and on the 8th, the cost per share was Rs.614.70.
Dewan Housing Finance Corporation Stock Trends in 2016 and 2017
- On January 2, 2017, the price per DHFL scrip stood at Rs.249 and by the 17th, the cost went up to Rs.291.40. There were very minor fluctuations over the next few days.
- In the February of 2017, it was noted that prices gradually inclined due favourable market conditions. On the 1st, the price was recorded at Rs.287.15 and on the 7th, the price was Rs.301.50. On the last day of the month, the price peaked at Rs.332.20.
- On March 1, 2017, the price was observed to be Rs.333.15 and over the next few weeks, the prices kept going up gradually, reaching Rs.368.10 on the 30th.
- From Rs.370 on April 3, 2017, the price went on to reach Rs.431.60 on the 26th. The following month, the price increased to Rs.429.45 on May 2 but notwithstanding the gain, the price fell to Rs.404.80 on the 24th.
- On June 1, 2017, the price per share was recorded at Rs.417.70, reaching Rs.464 on the 16th. By the 27th, the cost per share fell to Rs.440.
- Through July 2017 began on a low note, prices picked up, reaching Rs.471.20 on the 20th. The following month, the price per share slipped to Rs.422.05 but reached a high point of Rs.548 in September after the stock hit a new 52-week high.
- On September 19, 2017, the price crept up to Rs.608.70 after some developments in the DHFL board.
- October 2017 began on a slow note but there was a significant improvement in prices by as they reached Rs.586 on the 18th. By the 31st, the price reached Rs.651.65.
- On November 2, 2017, stocks hit a fresh new 52-week high and prices peaked at Rs.666.65 on the 6th. The stock price hovered around Rs.600 and above for the rest of the month.
- On December 13, 2017, the price fell to Rs.584 possibly due to hostile market conditions. However, as the Nifty headed higher, the price peaked at Rs.606.25.
- The price of the DHFL stock remained relatively lesser in 2016 when compared to that of 2017 and 2018.
- On January 1, 2016, the scrip price stood at Rs.245.90 and over the course of the month, the price dwindled. In February too, the same declining price trend was observed, with prices falling as low as Rs.145 on the 26th.
- In March and the following month, the prices increased at a steady pace, reaching Rs.202.05 on April 4, 2016.
- On September 9, 2016, the price of the stock reached Rs.302.05, By October 24, the price went on to reach Rs.332.60.
- By December 2016, the prices yet again went down, falling to Rs.239 by the 15th. The year closed at Rs.246 per share.
Should you invest in Dewan Housing Finance Corporation?
- DHFL has a pan-India network with one of ‘the country’s largest and most extensive distribution network’, which is spread across 347 locations with a focus on Tier II and Tier II markets.
- The company has received recognition for being ‘the best performing primary lending company under the Credit Linked Subsidy Scheme (CLSS) for Middle Income Group (MIG) I and II. It has also been recognised for granting the highest number of credit subsidies under Pradhan Mantri Awas Yojana (PMAY).
- They have a competitive advantage over other players in the market due to strengths such as industry knowledge and customer insights, rich talent pool, and robust business processes, among other factors.
- The financial year 2017 – 2018 has been a defining year for the company in both aspects – financial and strategic growth. The company crossed the Rs.1 lakh crore mark as far as the Assets Under Management (AUM) is concerned.
- DHFL is one of the most well-known housing finance companies that focusses on the affordable housing finance sector, making it a promising choice. They have also aligned their goals with the PMAY scheme in a very systematic manner.
- Keeping all the above factors in mind, make an investment decision after doing personal research.
Dewan Housing Finance Corporation Limited has been offering affordable housing loans to millions of people from the middle and lower income sections of society. DHFL has been disbursing loans for more than 30 years, helping people realise their dream of owning a home. The company was established in 1984 by the Late Shri Rajesh Kumar Wadhawan, who noticed that most people in India were not able to buy a house of their own. DHFL has also launched ‘Project Finance’ in an effort to provide a financial solution that will help various developers in the construction of residential projects. In this light, the company grants credit to developers to bridge the demand and supply gap. The company offers different types of housing loans such as new home loans, plot loans, construction loans, home loan balance transfer, extension loans, renovation loans, and NRI home loans. People who are eligible for the Pradhan Mantri Awas Yojana (PMAY) scheme can also seek credit linked subsidies under the provisions of the respective scheme. DHFL also provides loans against property. Business loans, plant and machinery loans, and medical equipment loans. Apart from credit facilities, they also offer fixed deposits for the general public, trusts and institutions. They also provide recurring deposit schemes and corporate deposit schemes.
History of the Company
DHFL was founded on April 11, 1984, by Rajesh Kumar Wadhawan. In 1995, a new branch was opened in Nagpur, making the number of branches reach a total of 28 in India. By 1997, DHFL went on to become one among the ‘largest family-owned housing finance companies’. The same year, the company launched a Double Protection Plan, which offers customers complimentary accident-risk coverage and property insurance. In 1998, the company introduces several new schemes such as equity loans and home improvement loans. By 2000, the company became the ‘second largest housing finance company in the private sector’. The same year, DHFL diversified operations into the personal loan, vehicle and consumer durable finance segments.
Management of the Company
Mr.Kapil Wadhawan – Chairman and Managing Director
Kapil became a part of the company in 1996 when he came in as a Director. In 2009, he was appointed as the Chairman and Managing Director. He was the driving force behind setting up offices internationally in London and Dubai. In 2003, he headed the acquisition of ING Vysya Bank Ltd and in the next few years he took the lead for the First Blue Home Finance Ltd. He has come out with great initiatives and has been in the forefront of shaping policies. He holds an MBA in Finance from Edith Cowan University in Australia.
Mr.Dheeraj Wadhawan – Non-Executive Director
Dheeraj also serves as one of the shareholders and promoters of the company. He has a degree from the University of London in construction management. He has more than a decade of experience in the construction and real estate industry. He was appointed as a Non-Executive Director of the Board in 2008.
Mr. Harshil Mehta – Joint Managing Director and Chief Executive Officer
Mehta served as the Chief Executive Officer (CEO) of the company and later took over as the Joint Managing Director. He has more than 20 years of experience working in the financial services sector. He is skilled in areas such as credit appraisal, service quality and operations.
Mr. G.P. Kohli – Independent Director
Kohli, earlier served as the Managing Director of Life Insurance Corporation of India (LIC). He is highly experienced and knowledgeable in segments such as housing, insurance, marketing, human resource management and technology. He has a Master’s degree in English Literature and a diploma in Personnel Management, Labour Laws and Welfare. He joined the company in 2001.
Dewan Housing Finance Corporation Listings in NSE, BSE, and Indices
Dewan Housing Finance Corporation equity shares are available for trading on the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective codes for the same have been mentioned below.
- NSE Code: DHFLEQ
- BSE Code: 511072
- ISIN: INE202B01012
- Sector: Finance - Housing
Coming to the stock market indices, the company comprises the following:
- Nifty 200
- Nifty 500
- Nifty Alpha 50
- Nifty Dividend Opportunities 50
- Nifty Full Midcap 100
- Nifty High Beta 50
- Nifty LargeMidcap 250
- Nifty Midcap 100
- Nifty Midcap 150
- Nifty Midcap 50
- Nifty MidSmallcap 400
- S&P BSE 150 MidCap Index
- S&P BSE 200
- S&P BSE 250 LargeMidCap Index
- S&P BSE 400 MidSmallCap Index
- S&P BSE 500
- S&P BSE AllCap
- S&P BSE Dollex - 200
- S&P BSE Finance
- S&P BSE MidSmallCap
- S&P BSE SmallCap
- S&P BSE SmallCap Select Index
Warden House, 2nd Floor,
Sir P. M. Road, Fort,
Mumbai - 400 001 Tel.: +91 22-6106 6800
Fax: +91 22-2287 1985
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