NSEI:GRUH

Stock Analysis Report

Executive Summary

GRUH Finance Limited operates as a housing finance company in India.


Snowflake Analysis

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has GRUH Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRUH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.4%

GRUH

-0.09%

IN Mortgage

-1.2%

IN Market


1 Year Return

14.0%

GRUH

12.6%

IN Mortgage

6.4%

IN Market

Return vs Industry: GRUH exceeded the Indian Mortgage industry which returned 12.1% over the past year.

Return vs Market: GRUH exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

GRUHIndustryMarket
7 Day16.4%-0.09%-1.2%
30 Day29.5%-5.2%-3.6%
90 Day11.0%-1.0%-0.5%
1 Year14.8%14.0%14.2%12.6%8.4%6.4%
3 Year91.6%88.0%40.0%34.1%20.9%14.3%
5 Year230.8%219.0%64.5%53.1%29.8%18.0%

Price Volatility Vs. Market

How volatile is GRUH Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GRUH Finance undervalued compared to its fair value and its price relative to the market?

51.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRUH (₹317.7) is trading above our estimate of fair value (₹38.87)

Significantly Below Fair Value: GRUH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GRUH is poor value based on its PE Ratio (51.9x) compared to the Mortgage industry average (14.4x).

PE vs Market: GRUH is poor value based on its PE Ratio (51.9x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GRUH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRUH is overvalued based on its PB Ratio (12.3x) compared to the IN Mortgage industry average (1.2x).


Next Steps

Future Growth

How is GRUH Finance forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRUH's forecast earnings growth (1.6% per year) is below the savings rate (7.6%).

Earnings vs Market: GRUH's earnings (1.6% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: GRUH's earnings are forecast to grow, but not significantly.

Revenue vs Market: GRUH's revenue (55.4% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: GRUH's revenue (55.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GRUH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GRUH Finance performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRUH has high quality earnings.

Growing Profit Margin: GRUH's current net profit margins (62%) are higher than last year (51.2%).


Past Earnings Growth Analysis

Earnings Trend: GRUH's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: GRUH's earnings growth over the past year (17.3%) is below its 5-year average (18.7% per year).

Earnings vs Industry: GRUH earnings growth over the past year (17.3%) underperformed the Mortgage industry 17.3%.


Return on Equity

High ROE: Whilst GRUH's Return on Equity (23.67%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GRUH has a low level of unsold assets or inventory.

Debt Coverage by Assets: GRUH's debt is covered by short term assets (assets are 1.2x debt).


Financial Institutions Analysis

Asset Level: GRUH's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GRUH has a sufficient allowance for bad loans.

Low Risk Liabilities: GRUH reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GRUH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GRUH has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GRUH has an appropriate level of bad loans.


Next Steps

Dividend

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

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRUH's dividend (0.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: GRUH's dividend (0.63%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: GRUH's dividends per share have been stable in the past 10 years.

Growing Dividend: GRUH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.7%), GRUH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Sudhin Choksey (65yo)

21.8yrs

Tenure

₹44,918,000

Compensation

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 area ...


CEO Compensation Analysis

Compensation vs Market: Sudhin's total compensation ($USD628.98K) is about average for companies of similar size in the Indian market ($USD749.06K).

Compensation vs Earnings: Sudhin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sudhin Choksey
MD, CEO & Director21.8yrs₹44.92m0.063% 147.9m
Hitesh Agrawal
Chief Financial Officer4.8yrs₹3.11m0.011% 25.8m
Marcus Lobo
Compliance Officer & Company Secretary0yrs₹5.82m0.087% 202.6m
Kamlesh Shah
Executive Director9.5yrs₹15.57m0.088% 205.6m
Suresh Iyer
Head of Operations0yrsno data0.062% 145.0m
Venu Menon
Head of Resources0yrsno data0.021% 49.5m
Jayesh Gangwani
Head of IT0yrsno data0.041% 96.3m
Milind Fanse
Chief Risk Officer0.3yrsno data0.00014% 326.1k
Umesh Agrawal
Executive Officer0yrsno data0.027% 62.4m
Rakesh Hardiya
Executive Officer0yrsno datano data

4.8yrs

Average Tenure

Experienced Management: GRUH's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sudhin Choksey
MD, CEO & Director21.8yrs₹44.92m0.063% 147.9m
Kamlesh Shah
Executive Director9.5yrs₹15.57m0.088% 205.6m
Deepak Parekh
Chairman of HDFC Ltd0yrsno datano data
Pankaj Patel
Non-Executive Independent Director2.6yrs₹1.68mno data
Keki Mistry
Non-Executive Non-Independent Chairman of the Board17.8yrs₹760.00k0.091% 211.3m
Sudhir Mankad
Non-Executive Independent Director9.8yrs₹2.13m0.035% 82.5m
Krishnamurthy Gopalratnam
Non-Executive Non-Independent Director15.8yrs₹680.00k0.13% 296.1m
Bhavna Doshi
Non-Executive Independent Woman Director1.8yrs₹1.24mno data
Biswamohan Mahapatra
Non-Executive Independent Director4.6yrs₹2.02mno data
Rajesh Gupta
Non-Executive Independent Director2.5yrs₹2.36mno data

9.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: GRUH's board of directors are considered experienced (9.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GRUH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GRUH Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GRUH Finance Limited
  • Ticker: GRUH
  • Exchange: NSEI
  • Founded: 1986
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹232.919b
  • Shares outstanding: 734.06m
  • Website: https://www.gruh.com

Number of Employees


Location

  • GRUH Finance Limited
  • "GRUH"
  • Netaji Marg
  • Ahmedabad
  • Gujarat
  • 380006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
511288BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2001
GRUHNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2001

Biography

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 30, 2019, it operated 195 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:44
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.