| Author |
Message |
Hitesh Shah
Senior Member
Joined: 12/Oct/2008
Online Status: Offline
Posts: 3656
|
   Topic: Housing Finance Companies
Posted: 05/Jul/2009 at 2:17pm |
Other than HDFC, there doesn't seem to be a topic devoted to housing finance companies.
Housing Finance: The Four Musketeers
Between HDFC, Gruh Finance, LIC Housing Finance and GIC Housing, these GOI backed institutions control almost the entire home finance requirements of the country. Strong net margins, business growth and lack of NPAs make them a direct and exciting play on the burgeoning Real Estate sector in the country.
Disclosure: I hold GIC Housing Finance.
Edited by basant - 05/Jul/2009 at 7:32am
|
 IP Logged |
|
|
|
 |
|
Hitesh Shah
Senior Member
Joined: 12/Oct/2008
Online Status: Offline
Posts: 3656
|
Posted: 05/Jul/2009 at 10:16pm |
|
In terms of ownership by mutual funds, HDFC obviously is a staple. LIC Housing Finance has become quite popular recently, and, as of 31/05/2009, Gruh Finance was owned only by schemes of DSP BlackRock. As of 31/05/2009, no fund was invested in GIC Housing Finance or Dewan Housing. This is based on data from valueresearchonline.com.
|
|
IP Logged |
|
|
|
wiseowl
Senior Member
Joined: 04/Mar/2009
Online Status: Offline
Posts: 295
|
Posted: 07/Jul/2009 at 1:53pm |
|
My concerns about GICHF :
1) Consistently high NPAs. Probably amongst the highest among all HFCs.
2) Does not seem to leverage upon the muscle / brand of GIC. Office network is not as wide as one hopes it to be.
3) How much of an interest does GIC have in making this company a star ? They did not have any success with their MF venture.
4) Among the first promoters of GICHF, there were companies like SBI, ICICI etc who had their own HF arms, and therefore conflicting interests. Now the shareholding pattern has changed with the entry of FIIs also. However, it still seems that the company is not able to realise its full potential.
Could you please throw more light on these aspects ?
|
|
You alone are responsible for your actions.
|
|
IP Logged |
|
|
|
Hitesh Shah
Senior Member
Joined: 12/Oct/2008
Online Status: Offline
Posts: 3656
|
Posted: 07/Jul/2009 at 4:47pm |
Hi Wiseowl, My prime reason for getting into this was the attractive & stable dividend yield. At my acquistion cost (~Rs. 40) and at the current DPS (Rs. 4), it works out to ~10%. (I had posted the company's ten-year financial summary somewhere in the Good Dividend Yield Stocks topic but can't find it right now  .) In this light, the other factors are not important to me. If I were investing in a growth stock certainly the points you raise would be relevant. In that case, LIC Housing would seem the most attractive but for the recent amazing run-up. Your other point about them making a hash of their MF venture.... What to say?
|
|
IP Logged |
|
|
|
smartcat
Senior Member
Joined: 29/Mar/2007
Location: India
Online Status: Offline
Posts: 4243
|
Posted: 07/Jul/2009 at 5:32pm |
Neat. Let me take a look at the companies you have mentioned.
GIC Housing looks the least interesting of the lot - they have managed to grow their profits by 7.5% CAGR in the last 2 years (supposedly boom time for real estate). LIC and Gruh look okay, after a quick glance.
|
|
IP Logged |
|
|
|
chaudhuris
Groupie
Joined: 22/Sep/2008
Location: United States
Online Status: Offline
Posts: 83
|
Posted: 08/Jul/2009 at 11:04pm |
|
1% and up non-promoter owners of GICHF:
Sl. No. Name of the Shareholder No. of Shares Shares as % of Total No. of Shares
1 Caledonia Investments PLC 5,115,851 9.50
2 Life Insurance Corporation of India Ltd 2,712,250 5.04
3 Tata Investment Corporation Ltd 1,330,800 2.47
4 Acacia Partners LP 1,050,000 1.95
5 CD Equisearch Pvt Ltd 915,422 1.70
6 Acacia Institutional Partners LP 740,000 1.37
Total 11,864,323 22.03
|
|
Only when the last tree has been cut down
Only when the last river has been poisoned
Only when the last fish has been caught
Only then will you find that money cannot be eaten. ~ Cree Philosophy
|
|
IP Logged |
|
|
|
chaudhuris
Groupie
Joined: 22/Sep/2008
Location: United States
Online Status: Offline
Posts: 83
|
Posted: 08/Jul/2009 at 11:06pm |
|
The same for Gruh Finance:
Sl. No. Name of the Shareholder No. of Shares Shares as % of Total No. of Shares
1 Merrill Lynch Capital Markets ESPANA S A S V 1,155,268 3.33
2 ACACIA Partners LP 1,103,775 3.19
3 Dr Sanjeev Arora 677,410 1.95
4 DSP Blackrock Small & Midcap Fund 669,327 1.93
5 DSP Blackrock Equity Fund 531,491 1.53
6 Tata Investment Corporation Ltd 500,000 1.44
7 Acacia Institutional Partners LP 467,200 1.35
Total 5,104,471 14.73
|
|
Only when the last tree has been cut down
Only when the last river has been poisoned
Only when the last fish has been caught
Only then will you find that money cannot be eaten. ~ Cree Philosophy
|
|
IP Logged |
|
|
|
chaudhuris
Groupie
Joined: 22/Sep/2008
Location: United States
Online Status: Offline
Posts: 83
|
Posted: 08/Jul/2009 at 11:09pm |
|
I have some presence in GICHF and a a very minute presence in Gruh. If there is any mispricing in Gruh then I would definitely increase my holdings there. But it is a little expensive, even at the current price - looking from a value perspective.
I would strongly encourage the Gruh stock price to correct further.
|
|
Only when the last tree has been cut down
Only when the last river has been poisoned
Only when the last fish has been caught
Only then will you find that money cannot be eaten. ~ Cree Philosophy
|
|
IP Logged |
|
|
|
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
