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GRUH Finance

NSEI:GRUH
Snowflake Description

Average dividend payer with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GRUH
NSEI
₹206B
Market Cap
  1. Home
  2. IN
  3. Banks
Company description

GRUH Finance Limited operates as a housing finance company in India. The last earnings update was 52 days ago. More info.


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GRUH Share Price and Events
7 Day Returns
-2.1%
NSEI:GRUH
4.1%
IN Mortgage
2.6%
IN Market
1 Year Returns
0.1%
NSEI:GRUH
0.4%
IN Mortgage
0.8%
IN Market
GRUH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GRUH Finance (GRUH) -2.1% 12.9% -9.3% 0.1% 127.3% 291.9%
IN Mortgage 4.1% 6.6% -0.3% 0.4% 70.4% 147.3%
IN Market 2.6% 7.7% 2.5% 0.8% 45.6% 83.2%
1 Year Return vs Industry and Market
Price Volatility
GRUH
Industry
5yr Volatility vs Market

Value

 Is GRUH Finance undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of GRUH Finance to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for GRUH Finance.

NSEI:GRUH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= ₹15.57 * 27.7%
₹4.32
Book Value of Equity per Share Median Book Value from the past 5 years. ₹15.57
Discount Rate (Cost of Equity) See below 17.9%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:GRUH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.881 (1 + (1- 35%) (72.38%))
1.198
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.198 * 8.6%)
17.86%

Discounted Cash Flow Calculation for NSEI:GRUH using Excess Returns Model Model

The calculations below outline how an intrinsic value for GRUH Finance is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NSEI:GRUH Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (27.7% – 17.86%) * ₹15.57)
₹1.54
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= ₹1.54 / (17.86% - 7.55%)
₹14.93
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= ₹15.57 + ₹14.93
₹30.5
NSEI:GRUH Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:GRUH represents 0.99579x of BSE:511288
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99579x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 30.50 x 0.99579
₹30.37
Value per share (INR) From above. ₹30.37
Current discount Discount to share price of ₹272.05
= -1 x (₹272.05 - ₹30.37) / ₹30.37
-795.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of GRUH Finance is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for GRUH Finance's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are GRUH Finance's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:GRUH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹5.53
BSE:511288 Share Price ** BSE (2019-03-18) in INR ₹273.2
India Mortgage Industry PE Ratio Median Figure of 12 Publicly-Listed Mortgage Companies 13.7x
India Market PE Ratio Median Figure of 2,728 Publicly-Listed Companies 16.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of GRUH Finance.

NSEI:GRUH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:511288 Share Price ÷ EPS (both in INR)

= 273.2 ÷ 5.53

49.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GRUH Finance is overvalued based on earnings compared to the IN Mortgage industry average.
  • GRUH Finance is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does GRUH Finance's expected growth come at a high price?
Raw Data
NSEI:GRUH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 49.36x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
1.4%per year
India Mortgage Industry PEG Ratio Median Figure of 5 Publicly-Listed Mortgage Companies 0.58x
India Market PEG Ratio Median Figure of 598 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for GRUH Finance, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on GRUH Finance's assets?
Raw Data
NSEI:GRUH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹22.68
BSE:511288 Share Price * BSE (2019-03-18) in INR ₹273.2
India Mortgage Industry PB Ratio Median Figure of 14 Publicly-Listed Mortgage Companies 2.03x
India Market PB Ratio Median Figure of 3,613 Publicly-Listed Companies 1.12x
NSEI:GRUH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:511288 Share Price ÷ Book Value per Share (both in INR)

= 273.2 ÷ 22.68

12.04x

* Primary Listing of GRUH Finance.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GRUH Finance is overvalued based on assets compared to the IN Mortgage industry average.
X
Value checks
We assess GRUH Finance's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. GRUH Finance has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is GRUH Finance expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

  • No analysts cover GRUH Finance, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is GRUH Finance expected to grow at an attractive rate?
  • GRUH Finance's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • GRUH Finance's earnings growth is positive but not above the India market average.
  • GRUH Finance's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:GRUH Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:GRUH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 1.4%
NSEI:GRUH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 56.1%
India Mortgage Industry Earnings Growth Rate Market Cap Weighted Average -3%
India Mortgage Industry Revenue Growth Rate Market Cap Weighted Average -20.9%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:GRUH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:GRUH Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-03-31 23,439 1
2019-03-31 20,561 1
NSEI:GRUH Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 7,880 4,056
2018-09-30 7,774 3,995
2018-06-30 7,461 3,819
2018-03-31 7,172 -19,296 3,627
2017-12-31 6,855 3,426
2017-09-30 6,596 3,245
2017-06-30 6,193 3,087
2017-03-31 5,799 -17,108 2,967
2016-12-31 5,478 2,740
2016-09-30 5,166 2,637
2016-06-30 4,988 2,535
2016-03-31 4,793 -19,187 2,436

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GRUH Finance's earnings are expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
  • GRUH Finance's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:GRUH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from GRUH Finance Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GRUH Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-03-31
2019-03-31
NSEI:GRUH Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 5.53
2018-09-30 5.45
2018-06-30 5.22
2018-03-31 4.96
2017-12-31 4.69
2017-09-30 4.45
2017-06-30 4.24
2017-03-31 4.08
2016-12-31 3.77
2016-09-30 3.63
2016-06-30 3.49
2016-03-31 3.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if GRUH Finance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess GRUH Finance's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
GRUH Finance has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has GRUH Finance performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare GRUH Finance's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • GRUH Finance's year on year earnings growth rate has been positive over the past 5 years.
  • GRUH Finance's 1-year earnings growth exceeds its 5-year average (18.4% vs 18.1%)
  • GRUH Finance's earnings growth has not exceeded the IN Mortgage industry average in the past year (18.4% vs 22%).
Earnings and Revenue History
GRUH Finance's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from GRUH Finance Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GRUH Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,879.50 4,055.80 724.40
2018-09-30 7,774.10 3,994.70 692.10
2018-06-30 7,460.50 3,818.50 690.00
2018-03-31 7,171.90 3,626.80 669.60
2017-12-31 6,855.40 3,426.20 649.60
2017-09-30 6,595.60 3,245.00 639.90
2017-06-30 6,192.90 3,087.10 615.90
2017-03-31 5,798.60 2,966.50 592.50
2016-12-31 5,477.50 2,740.20 615.60
2016-09-30 5,165.80 2,637.20 607.10
2016-06-30 4,987.90 2,534.50 588.30
2016-03-31 4,793.30 2,435.80 574.90
2015-12-31 4,328.50 2,278.90 549.50
2015-09-30 4,157.90 2,188.90 575.40
2015-06-30 3,940.00 2,102.70 550.00
2015-03-31 3,922.30 2,018.70 448.60
2014-12-31 3,611.30 2,033.40 489.40
2014-09-30 3,479.60 1,938.40 487.40
2014-06-30 3,279.20 1,851.00 469.30
2014-03-31 3,100.90 1,769.60 457.00
2013-12-31 2,844.20 1,664.20 428.30
2013-09-30 2,730.80 1,600.70 415.70
2013-06-30 2,587.50 1,529.30 374.50
2013-03-31 2,498.70 1,458.80 376.10
2012-12-31 2,363.03 1,383.90 357.01
2012-09-30 2,240.53 1,328.00 342.61
2012-06-30 2,090.73 1,265.10 329.01
2012-03-31 2,055.90 1,203.40 306.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst GRUH Finance has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • GRUH Finance used its assets more efficiently than the IN Mortgage industry average last year based on Return on Assets.
  • Unable to establish if GRUH Finance improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess GRUH Finance's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
GRUH Finance has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is GRUH Finance's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of GRUH Finance's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from GRUH Finance Company Filings, last reported 2 months ago.

NSEI:GRUH Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 16,617.30 149,395.10 209.60
2018-09-30 16,617.30 149,395.10 209.60
2018-06-30 13,809.20 140,738.50 731.20
2018-03-31 13,809.20 140,738.50 731.20
2017-12-31 11,596.90 131,702.50 610.70
2017-09-30 11,596.90 131,702.50 610.70
2017-06-30 11,132.10 120,297.80 386.50
2017-03-31 11,132.10 120,297.80 386.50
2016-12-31 9,623.40 112,111.20 548.90
2016-09-30 9,623.40 112,111.20 548.90
2016-06-30 8,353.00 102,436.20 575.60
2016-03-31 8,353.00 102,436.20 575.60
2015-12-31 8,679.80 96,599.30
2015-09-30 8,143.00 91,740.00 259.90
2015-06-30 7,114.90 82,154.50 740.70
2015-03-31 7,114.90 82,154.50 740.70
2014-12-31 7,011.50 73,442.80 60.30
2014-09-30 7,011.50 73,442.80 60.30
2014-06-30 6,072.40 64,474.50 831.70
2014-03-31 6,072.40 64,474.50 831.70
2013-12-31 5,653.10 58,012.80 1,516.40
2013-09-30 5,653.10 58,012.80 1,516.40
2013-06-30 4,909.90 49,315.70 221.20
2013-03-31 4,909.90 49,315.70 221.20
2012-12-31 4,475.10 43,335.90 674.60
2012-09-30 4,475.10 43,335.90 674.60
2012-06-30 3,855.59 38,325.95 1,694.77
2012-03-31 3,855.50 38,326.00 1,694.80
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Unable to establish if GRUH Finance has an acceptable proportion of non-loan assets without balance sheet data.
  • Unable to establish if GRUH Finance's liabilities are primarily made up of low risk funding sources without deposits or liabilities data.
  • GRUH Finance reports no customer deposits, loans are made up entirely of borrowed funds.
  • GRUH Finance's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Unable to establish if GRUH Finance has a sufficient allowance for bad loans without relevant financial data.
  • Unable to establish if GRUH Finance has an acceptable level of bad loans without bad loans data.
X
Financial health checks
We assess GRUH Finance's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. GRUH Finance has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is GRUH Finance's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.6%
Current annual income from GRUH Finance dividends. Estimated to be 0.59% next year.
If you bought ₹2,000 of GRUH Finance shares you are expected to receive ₹12 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • GRUH Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • GRUH Finance's dividend is below the markets top 25% of dividend payers in India (1.88%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:GRUH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
India Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.3%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:GRUH Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2020-03-31 1.60 1.00
2019-03-31 1.60 1.00
NSEI:GRUH Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-05-03 1.650 0.562
2017-04-17 1.400 0.564
2016-04-20 1.150 0.733
2015-06-01 1.000 0.805
2015-04-16 1.000 0.836
2014-04-15 0.750 0.688
2013-06-17 0.625 1.051
2013-04-12 0.625 1.171
2012-05-24 0.575 1.238
2012-04-25 0.575 1.730
2011-04-13 0.425 1.674
2010-04-16 0.325 1.861
2009-05-08 0.240 2.440
2009-03-19 0.200 3.853

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of GRUH Finance's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess GRUH Finance's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can GRUH Finance afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. GRUH Finance has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of GRUH Finance's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sudhin Choksey
COMPENSATION ₹40,142,000
AGE 64
TENURE AS CEO 21.2 years
CEO Bio

Mr. Sudhin Bhagwandas Choksey has been Chief Executive Officer and Managing Director of GRUH Finance Limited since 1998 and 2000 respectively. Mr. Choksey has working experience of handling functional areas of finance commercial and general management both in India and abroad. He served as an Executive Officer of Housing Development Finance Corporation Ltd. Mr. Choskey has been a Non-Executive Independent Director of Gujarat Ambuja Exports Limited since February 6, 2012. He has been an Executive Director of Gruh Finance Limited since May 03, 1996. Mr. Choksey has been an Independent Director of Deepak Nitrite Limited. since August 2005. He served as Director of Gujarat State Financial Services Limited since March 5, 2007. He is a Chartered Accountant from the Institute of Chartered Accountants of India.

CEO Compensation
  • Sudhin's compensation has been consistent with company performance over the past year.
  • Sudhin's remuneration is about average for companies of similar size in India.
Management Team

Sudhin Choksey

TITLE
MD, CEO & Director
COMPENSATION
₹40M
AGE
64
TENURE
21.2 yrs

Hitesh Agrawal

TITLE
Chief Financial Officer
COMPENSATION
₹3M
TENURE
4.2 yrs

Marcus Lobo

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹5M

Kamlesh Shah

TITLE
Executive Director
COMPENSATION
₹14M
AGE
63

Suresh Iyer

TITLE
General Manager of Operations

Venu Menon

TITLE
Head of Resources

Jayesh Gangwani

TITLE
Deputy General Manager of Information Systems

Umesh Agrawal

TITLE
Executive Officer

Rakesh Hardiya

TITLE
Executive Officer

Rupali Shelar

TITLE
Executive Officer
Board of Directors Tenure

Average tenure and age of the GRUH Finance board of directors in years:

15.2
Average Tenure
63.5
Average Age
  • The average tenure for the GRUH Finance board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Keki Mistry

TITLE
Chairman of the Board
COMPENSATION
₹370K
AGE
63
TENURE
17.2 yrs

Sudhin Choksey

TITLE
MD, CEO & Director
COMPENSATION
₹40M
AGE
64
TENURE
22.8 yrs

Kamlesh Shah

TITLE
Executive Director
COMPENSATION
₹14M
AGE
63
TENURE
8.9 yrs

Deepak Parekh

TITLE
Chairman of HDFC Ltd
AGE
74

Prafull Shah

TITLE
Independent Director
COMPENSATION
₹2M
AGE
80
TENURE
32 yrs

Sudhir Mankad

TITLE
Independent Director
COMPENSATION
₹2M
AGE
71
TENURE
9.2 yrs

Biswamohan Mahapatra

TITLE
Non-Executive Independent Director
COMPENSATION
₹2M
AGE
63
TENURE
4 yrs

Rajesh Gupta

TITLE
Independent Director
COMPENSATION
₹300K
AGE
53
TENURE
1.9 yrs

K. Krishnamurthy

TITLE
Non-Executive Director
COMPENSATION
₹360K
AGE
62
TENURE
15.2 yrs

Renu Karnad

TITLE
Non-Executive Non-Independent Director
COMPENSATION
₹145K
AGE
65
TENURE
19.2 yrs
Who owns this company?
Recent Insider Trading
  • GRUH Finance insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
12. Mar 19 Sell Rakesh Chowdhary Individual 08. Mar 19 11. Mar 19 -6,000 ₹270.31 ₹-1,621,861
12. Mar 19 Sell Arvind Kshatriya Individual 01. Mar 19 11. Mar 19 -7,900 ₹247.75 ₹-1,957,187
12. Mar 19 Sell Jayesh Gangwani Individual 25. Feb 19 28. Feb 19 -14,000 ₹246.92 ₹-3,456,850
11. Mar 19 Sell Amit Chokshi Individual 08. Mar 19 11. Mar 19 -67,000 ₹272.06 ₹-18,227,996
05. Mar 19 Sell Bharat Modh Individual 28. Feb 19 01. Mar 19 -7,998 ₹250.46 ₹-2,003,170
28. Feb 19 Sell Bharat Modh Individual 22. Feb 19 27. Feb 19 -6,902 ₹253.30 ₹-1,748,286
01. Mar 19 Sell Venu Menon Individual 28. Feb 19 01. Mar 19 -10,000 ₹251.34 ₹-2,508,427
28. Feb 19 Sell Shilpa Kulkarni Individual 22. Feb 19 23. Feb 19 -3,500 ₹251.29 ₹-879,525
22. Feb 19 Sell Venu Menon Individual 21. Feb 19 21. Feb 19 -1,800 ₹247.83 ₹-446,094
21. Feb 19 Sell Jayesh Gangwani Individual 28. Jan 19 14. Feb 19 -35,000 ₹242.21 ₹-8,477,468
15. Feb 19 Sell Anita Srivastav Individual 11. Feb 19 11. Feb 19 -5,000 ₹243.82 ₹-1,219,089
13. Feb 19 Sell Venu Menon Individual 11. Feb 19 11. Feb 19 -26,000 ₹241.49 ₹-6,278,740
08. Feb 19 Sell Ajay Patel Individual 17. Jan 19 07. Feb 19 -6,500 ₹232.25 ₹-1,509,650
06. Feb 19 Sell Hitesh Agrawal Individual 01. Feb 19 04. Feb 19 -80,700 ₹205.85 ₹-16,612,448
31. Jan 19 Sell Venu Menon Individual 30. Jan 19 30. Jan 19 -11,400 ₹211.23 ₹-2,408,022
11. Jan 19 Sell Nisha Mekkad Individual 13. Dec 18 13. Dec 18 -700 ₹305.01 ₹-213,508
21. Dec 18 Sell Amit Chokshi Individual 12. Dec 18 14. Dec 18 -10,000 ₹297.70 ₹-2,976,999
17. Dec 18 Sell Rupali Shelar Individual 04. Dec 18 10. Dec 18 -9,965 ₹287.71 ₹-2,867,010
17. Dec 18 Sell Marcus Lobo Individual 14. Dec 18 14. Dec 18 -2,000 ₹300.50 ₹-601,009
03. Dec 18 Sell Dharmesh Bhavsar Individual 27. Nov 18 28. Nov 18 -21,000 ₹279.90 ₹-5,877,874
03. Dec 18 Sell Rakesh Chowdhary Individual 01. Nov 18 27. Nov 18 -6,800 ₹288.95 ₹-1,964,843
03. Dec 18 Sell Rupali Shelar Individual 01. Nov 18 27. Nov 18 -10,000 ₹282.90 ₹-2,829,039
21. Nov 18 Sell Jayesh Gangwani Individual 09. Nov 18 15. Nov 18 -10,000 ₹297.91 ₹-2,979,100
17. Nov 18 Sell Ashish Sutaria Individual 13. Nov 18 16. Nov 18 -9,000 ₹303.28 ₹-2,729,499
06. Oct 18 Sell Amar Vyas Individual 01. Jul 18 24. Sep 18 -13,750 ₹333.99 ₹-4,592,362
26. Sep 18 Sell Ajay Patel Individual 21. Sep 18 21. Sep 18 -35 ₹328.00 ₹-11,480
14. Sep 18 Sell Hiren Visavadiya Individual 10. Sep 18 12. Sep 18 -10,000 ₹332.00 ₹-3,320,000
12. Sep 18 Sell Ashish Sutaria Individual 04. Sep 18 12. Sep 18 -6,000 ₹333.30 ₹-1,999,810
12. Sep 18 Sell Kamlesh Shah Individual 07. Sep 18 12. Sep 18 -34,080 ₹330.29 ₹-11,256,256
12. Sep 18 Sell Ashish Sutaria Individual 04. Sep 18 12. Sep 18 -600 ₹333.30 ₹-199,981
06. Sep 18 Sell Anand Nandi Individual 27. Aug 18 27. Aug 18 -5,000 ₹320.00 ₹-1,600,000
01. Sep 18 Sell Mehul Buch Individual 30. Aug 18 30. Aug 18 -7,000 ₹33.14 ₹-232,000
31. Aug 18 Sell Sudhin Choksey Individual 29. Aug 18 31. Aug 18 -53,613 ₹0.01 ₹-338
27. Aug 18 Sell Amit Chokshi Individual 10. Aug 18 10. Aug 18 -1,000 ₹332.18 ₹-332,183
10. Aug 18 Sell Sudhin Choksey Individual 09. Aug 18 10. Aug 18 -53,000 ₹333.00 ₹-17,648,999
04. Aug 18 Sell Marcus Lobo Individual 03. Aug 18 03. Aug 18 -22,000 ₹334.30 ₹-7,354,663
30. Apr 18 Sell Ramchandra Kharpude Individual 17. Apr 18 20. Apr 18 -19,800 ₹323.61 ₹-6,407,399
X
Management checks
We assess GRUH Finance's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. GRUH Finance has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Does GRUH Finance Limited's (NSE:GRUH) PE Ratio Tell You?

I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … Check out our latest analysis for GRUH Finance

Simply Wall St -

An Examination Of GRUH Finance Limited (NSE:GRUH)

GRUH Finance Limited (NSE:GRUH) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of GRUH, it

Simply Wall St -

Should You Expect GRUH Finance Limited (NSE:GRUH) To Continue Delivering An ROE Of 27.65%?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … Check out our latest analysis for GRUH Finance

Simply Wall St -

Does GRUH Finance Limited's (NSE:GRUH) CEO Salary Compare Well With Others?

Sudhin Choksey is the CEO of GRUH Finance Limited (NSE:GRUH), which has recently grown to a market capitalization of ₹236.55b. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.

Simply Wall St -

Does GRUH Finance Limited's (NSE:GRUH) PE Ratio Signal A Selling Opportunity?

and want to better understand how you can grow your money by investing in GRUH Finance Limited (NSE:GRUH). … GRUH Finance Limited (NSE:GRUH) is trading with a trailing P/E of 61.3x, which is higher than the industry average of 18.9x. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

Looking At GRUH Finance Limited (NSE:GRUH) From All Angles

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of GRUH Finance Limited (NSE:GRUH), it

Simply Wall St -

Does The Hype Around GRUH Finance Limited's (NSE:GRUH) Growth Justify Its May Share Price?

Growth expectations for GRUH Finance Limited (NSEI:GRUH) are high, but many investors are starting to ask whether its last close at ₹679.25 can still be rationalized by the future potential. … A PE ratio of 68.63x and expected year-on-year earnings growth of 17.24% give GRUH Finance a quite high PEG ratio of 3.98x. … This tells us that when we include its growth in our analysis GRUH Finance's stock can be considered overvalued , based on the fundamentals.

Simply Wall St -

Can GRUH Finance Limited (NSE:GRUH) Continue To Outperform Its Industry?

See our latest analysis for GRUH Finance Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of GRUH Finance’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of GRUH Finance’s equity capital deployed. … This means GRUH Finance returns enough to cover its own cost of equity, with a buffer of 16.14%.

Simply Wall St -

Does GRUH Finance Limited's (NSE:GRUH) PE Ratio Signal A Selling Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for GRUH Price per share = ₹551.9 Earnings per share = ₹9.39 ∴ Price-Earnings Ratio = ₹551.9 ÷ ₹9.39 = 58.8x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you inadvertently compared riskier firms with GRUH, then investors would naturally value GRUH at a higher price since it is a less risky investment. … Similarly, if you accidentally compared lower growth firms with GRUH, investors would also value GRUH at a higher price since it is a higher growth investment.

Simply Wall St -

Interested In GRUH Finance Limited (NSE:GRUH)? Here's What Its Recent Performance Looks Like

See our latest analysis for GRUH Finance Were GRUH's earnings stronger than its past performances and the industry? … Given that these values may be relatively short-term thinking, I’ve estimated an annualized five-year figure for GRUH's earnings, which stands at ₹1.95B This means that, on average, GRUH Finance has been able to consistently raise its bottom line over the last couple of years as well. … This means any tailwind the industry is profiting from, GRUH Finance has not been able to leverage it as much as its average peer.What does this mean?

Simply Wall St -

Company Info

Description

GRUH Finance Limited operates as a housing finance company in India. The company offers loans for the purchase, construction, and extension, as well as repair and renovation of houses for individuals and families. It also accepts deposits. As of April 14, 2018, it operated 194 retail offices across 11 states. GRUH Finance Limited was founded in 1986 and is based in Ahmedabad, India. GRUH Finance Limited is a subsidiary of Housing Development Finance Corporation Limited.

Details
Name: GRUH Finance Limited
GRUH
Exchange: NSEI
Founded: 1986
₹206,399,485,672
733,473,652
Website: http://www.gruh.com
Address: GRUH Finance Limited
"GRUH",
Netaji Marg,
Ahmedabad,
Gujarat, 380006,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 511288 Equity Shares Mumbai Stock Exchange IN INR 05. Jul 2001
NSEI GRUH Equity Shares National Stock Exchange of India IN INR 05. Jul 2001
Number of employees
Current staff
Staff numbers
692
GRUH Finance employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 12:43
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/02/02
Last earnings filing: 2019/01/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.