GRUH Finance Limited (GRUH) is a housing finance company providing home loans to individuals and families for purchase, extension and construction. The company also provides loans for self-employed individuals as well as purchase and construction loans for non-residential properties. Additionally, it offers mortgage loans on existing residential and commercial properties. GRUH Finance Ltd’s equity shares are listed for trading in the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).
The market capitalisation of Gruh Finance Ltd, as of 20 August 2018, is little more than Rs.23,200 crore.
Company’s Wealth and Recent Performance
- Gruh Finance Ltd.’s Q1 FY19 standalone net profit was in-line with the estimates. It rose by 19.9% year-on-year (yoy) basis to Rs.155.71 crore led by the company’s higher growth of Net Interest Income (NII).
- The company’s Net Interest Income increased by 12.8% yoy to Rs.188.8 crore and its loan portfolio for the said quarter increased by 16% yoy to Rs.15,857 crore, compared to Rs.13,665 crore last year.
- Gruh Finance Ltd.’s disbursement of loans during Q1 FY19 was at Rs.1,226 crore compared to Rs.1,200 crore in the same period last year, increasing by 2%.
- The company has performed well during the Q4 FY18 period when it reported its NII inclined by 24.6% yoy at Rs.231 crore compared to Rs.185 crore last year.
- The housing finance company’s net profit was in-sync with estimates, improving by 18.2% yoy to Rs.130.5 crore compared to Rs.110.5 crore in the same period last year.
- The retail home loans were at Rs.4,016 crore during the financial year ending on 31 March 2018, which contributed to 70% of the total disbursement.
- The Capital Adequacy Ratio (CAR) stood at 18.90% as of 31 March 2018 and the cost-to-income ratio for fiscal 2018 stood at 14.16%.
GRUH Finance Ltd. Stock Trends in 2018
- The NSE opened for trading on the 1st of January 2018 when the company’s share price opened at Rs.250.75 and rose to touch Rs.343.90 on the 19th; however, it declined, to end the month at Rs.292.43, up by more than 40 points compared to the 1st of the month.
- On the 1st of February, the company’s share price opened for trading at Rs.289.65 and declined to touch Rs.257 on the 7th, and again dropped to Rs.253.43 on the 20th; however, it recovered by the end of the month and closed at Rs.268.
- When the market opened on the 1st of March, Gruh Finance Ltd. share price opened at Rs.268.85 and fluctuated over the course of the month. It closed at Rs.287.63, up by more than 20 points against the opening date price.
- The share continued to incline and opened for trading at Rs.288.48 and gained more than 15 points and ended the day at Rs.303.28 on the 1st of April. The price of the stock gained significantly during the course of the month to end at Rs.338.50, up by more than 15 points.
- On the 1st of May, it opened for trading at Rs.338.50 and touched Rs.353.63 on the 8th of the month and closed at the end of the month at Rs.354.90.
- The value of the share on the 1st of June stood at Rs.352.38 and lost more than 50 points by 20th of the month, but it improved over the fourth week to end the month at Rs.304.15.
- The NSE opened on the 2nd of July for trading and Gruh Finance Ltd. share price ended the day at Rs.309 and gained more than 30 points by the 12th of the month before declined to close at Rs.323.40 on the 31st of the month.
Gruh Finance Ltd. Stock Trends in 2016 and 2017
- The NSE opened for trading on the 1st of January 2016 when Gruh Finance Ltd. share price opened at Rs.137 and touched a low of Rs.116.55 on the 19th but recovered to close the month at Rs.130.98. The stock dropped by 4 points on the 1st of February and slipped further to end the month at Rs.114. It closed at Rs.117.40 on the 1st of March and gained more than 3 points by the end of the month.
- On the 1st of April, the share price of the company gained 3 points to end the day at Rs.123.33. It grew by more than 5 points by the end of April to close at Rs.128.65. When the stock market opened for the month of May, it stood at Rs.126.93 and inclined significantly over the course of the month to end at Rs.141.03. During the month of June, the housing finance company’s share price fluctuated and closed at Rs.143.20.
- On the 1st of July, the share price dropped by nearly 4 points to close at Rs.141.35 but gained over the course of the month to end at Rs.146.88. On the 1st of August, the price fell by more than 4 points; however, it recovered to touch Rs.165.20 on the last day of the month. In September, it fluctuated during the course of the month and closed at Rs.163.83.
- On the 3rd of October, the shares of the company gained 2 points to close at Rs.166.98 and rose by more than 13 points at Rs.179.38 on the 7th but declined towards the end of the month to stand at Rs.167.88. The share price fell on the 1st of November by 2 points to close the day at Rs.164.68; however, its declined considerably to stand at Rs.141.08 on the 15th but gained more than 15 points by the end of the month to close at Rs.156.58. On the last month of 2016, the stock of the company opened at Rs.153.38 and gained nearly 10 points to close at Rs.161.73.
- On the 2nd of January 2017, the company’s share price opened for trading at Rs.164.68 and gained 3 points by the end of the month to stand at Rs.167.78. The share gained nearly 10 points on the 1st day of trading in February to stand at Rs.176.95 and by the end of the month, it had gained more than 10 points to be traded at Rs.186.70. In the month of March, the stock opened for trading at Rs.186.75 and moved upwards to gain more than 11 points by the end of the month to close at Rs.197.95.
- In April, the share price opened at Rs.198 and dropped significantly by 14 points to stand at Rs.184.83 on the 17th; however, it inclined by the end of the month to close at Rs.198.98. On the 1st of May, the stock opened at Rs.198.98 and grew by more than 13 points to stand at Rs.211.50 on the 11th only to decline by the end of the month to be traded at Rs.197.80.
- In June, the opening price of the stock stood at Rs.196.85 and increased significantly to touch Rs.225.08 gaining by more than 30 points on the 22nd before it declined to end the month at Rs.222.60.
- When the stock market opened for trading on the 3rd of July, the company’s stock price stood at Rs.221.88 and gained considerably to touch Rs.254.43 on the 13th and closed the month at Rs.245.53, up by nearly 25 points against the 3rd of the month. On the 1st of August, the stock opened at Rs.247.55 and gained 5 points to close the day’s trading at Rs.252.15. On the last day of trading in August, the stock had gained more than 7 points to end at Rs.260.73. On the 1st of September, the stock closed for trading at Rs.257.60 and depreciated by the end of the month to close at Rs.245.83.
- When the market opened on the 2nd of October, the company’s share closed for trading at Rs.245.83 and had gained nearly 5 points by the end of the month to close at Rs.249.03. On the 1st of November, the stock had gained a point to close the day at Rs.250.63 and remained steady throughout the month and ended the month at Rs.250.15. The stock gained more than 4 points on the 1st of December to stand at Rs.254.95 and remained stable through the month; however, it lost 3 points to close at Rs.251.65 on the last day of the month.
Should You Invest in GRUH Finance Ltd.?
- The company’s main revenue source through interest on loans rose by 12.8% in Q1 FY19 as against the same period last year and its standalone profit has increased by 19.9% year-on-year in-line with estimates.
- GRUH Finance Ltd. loan portfolio for the said quarter has inclined by 16% at Rs.15,857 crore compared to the same period last when it stood at Rs.13,665 crore.
- The loan disbursement of the company rose by 2% during the Q1 FY19 when it stood at Rs.1,226 crore compared to Rs.1,200 crore for the same quarter last year.
- For the said quarter, the company’s stock ended at Rs.336, up by nearly 4 points or a little more than 1% compared to its previous closing of Rs.332.55 on the Bombay Stock Exchange.
- The leadership team of GRUH Finance Ltd. are extensively experienced and can take strategic decisions to increase the performance of the company.
The housing finance company, GRUH Finance Ltd., provides home loans to families and individuals for purchase, construction and extension. The company also offers loans for renovation and repair of houses as well as home loans to families in self-employed category. Additionally, it provides loans for purchase and construction of non-residential properties and mortgage against existing residential and commercial properties. The loan is offered by the company on an annual, monthly and daily basis. The products offered by GRUH Finance Ltd. include GRUH Suraksha, GRUH Suvidha, GRUH Sajavat and GRUH Samruddhi.
Promoted by HDFC and AKFED in 1986, GRUH Finance Ltd. began its operations in 1988. The company is based out of Ahmedabad, Gujarat and is registered with the National Housing Board (NHB). GRUH Finance Ltd. is a subsidiary of HDFC Ltd. and has over 190 retail branches across 11 states in India. The company has disbursed loans amounting to Rs.23,197 crore as on 31 March 2017 and the cumulative disbursement of loans under the Golden Jubilee Rural Housing Finance Scheme as of 31 March 2017 of over Rs.8,500 crore. The company focuses on affordable housing loans, especially in rural areas.
Management of the Company
Keki M. Mistry
Mr. Keki M. Mistry is the non-executive Chairman of GRUH Finance Ltd. and Vice Chairman and Chief Executive Officer of HDFC. He serves as a director of the board of various companies such as HDFC Bank, HDFC Standard Life Insurance Co. Ltd., HDFC ERGO General Insurance Company Ltd., Sun Pharmaceuticals Ltd., HCL Technologies, among others. He’s been on the board of GRUH Finance Ltd. since 2000 and as a Chairman since 2002. Mr. Mistry is a fellow of the Institute of Chartered Accountants of India as well as the Chairman of CII National Council on Corporate Governance. He is also the member of the Audit Committee and Nomination and Remuneration Committee of the company.
Mr. Prafull Anubhai is a Corporate Advisor at the company and is associated with educational and research institutions such as Indian Institute of Management, Ahmedabad (IIMA), Ahmedabad Education Society, among others. He was also the former Chairman of the Board of Management of the Ahmedabad University. He has completed his B.Sc (Econ) from the London School of Economics and attended PMD at Harvard Business School. He has been on the board of the company since 1987.
Renu S. Karnad
Ms. Renu S. Karnad is the Managing Director of HDFC Ltd. and is a Parvin Fellow of Woodrow Wilson School of International Affairs, Princeton University, U.S.A. and employed with HDFC Ltd. since 1978. She is a director in companies such as HDFC Asset Management Company Ltd., HDFC Standard Life Insurance Company Ltd., HDFC ERGO General Insurance Company Ltd., Maruti Suzuki India Ltd., and has been on the board of GRUH Finance Ltd. since 2000. She is also the member of the Nomination and Remuneration Committee and a member of the Corporate Social Responsibility (CSR) Committee of the company.
GRUH Finance Ltd. in NSE, BSE and Listings
The equity shares of GRUH Finance Ltd. are available for trading on NSE and BSE. The codes for GRUH Finance Ltd. are as follows:
- NSE Code - GRUH
- BSE Code - 511288
- BSE Group - A
- ISIN - INE580B01029
- Sector - Finance - Housing
GRUH Finance Ltd. stock market indices comprise the following:
- S&P CNX 500
- CNX Midcap
GRUH Netaji Marg, Near Mithakhali Six Roads, Ellisbridge,
Ahmedabad - 380006
Gujarat - India
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