Dewan Housing Finance - March 2013 Results Preview - Motilal Oswal

- DEWH's strong loan growth momentum is likely to continue given the buoyancy in housing market. We expect loan growth (on balance sheet) of 35%+ YoY and AUM growth of 45%+ YoY.

- Leverage will be a key factor as the reported debt-to-equity ratio stood at 10.6x as in December 2012.

- Margins are likely to remain largely stable and may witness some improvement in the coming quarters led by expected decline in the cost of funds. We expect NII to grow 46% YoY and 15% QoQ to INR1.82b.

- We expect asset quality to remain stable sequentially.

- We estimate PAT to grow 48% YoY and 12.2% QoQ to INR1.02b.

- The stock trades at 0.7x FY14E and 0.6x FY15E BV.

Source : Equity Bulls

Keywords