NSEI:RELHOME

Stock Analysis Report

Reliance Home Finance

Executive Summary

Reliance Home Finance Limited engages in the housing finance business in India.

Snowflake

Fundamentals

Good value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.6%

RELHOME

4.8%

IN Mortgage

3.1%

IN Market


1 Year Return

-91.7%

RELHOME

7.9%

IN Mortgage

3.7%

IN Market

Return vs Industry: RELHOME underperformed the Indian Mortgage industry which returned 7.9% over the past year.

Return vs Market: RELHOME underperformed the Indian Market which returned 3.7% over the past year.


Shareholder returns

RELHOMEIndustryMarket
7 Day4.6%4.8%3.1%
30 Day-39.3%2.5%5.7%
90 Day-68.2%-11.9%1.4%
1 Year-91.7%-91.7%9.3%7.9%5.9%3.7%
3 Yearn/a41.0%35.3%22.3%16.0%
5 Yearn/a105.9%92.6%42.5%28.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RELHOME (₹3.4) is trading below our estimate of fair value (₹4.26)

Significantly Undervalued: RELHOME is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RELHOME is good value based on its PE Ratio (2.5x) compared to the Mortgage industry average (10.4x).

PE vs Market: RELHOME is good value based on its PE Ratio (2.5x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RELHOME is good value based on its PB Ratio (0.1x) compared to the IN Mortgage industry average (0.9x).


Next Steps

Future Growth

How is Reliance Home Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RELHOME's forecast earnings growth (25.2% per year) is above the savings rate (7.6%).

Earnings vs Market: RELHOME's earnings (25.2% per year) are forecast to grow faster than the Indian market (18.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if RELHOME's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if RELHOME's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Reliance Home Finance performed over the past 5 years?

21.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RELHOME's earnings have grown significantly by 21.5% per year over the past 5 years.

Accelerating Growth: RELHOME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RELHOME had negative earnings growth (-65.2%) over the past year, making it difficult to compare to the Mortgage industry average (-1.6%).


Return on Equity

High ROE: RELHOME's Return on Equity (3.7%) is considered low.


Return on Assets

ROA vs Industry: RELHOME's Return on Assets is below or equal to the Mortgage industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate RELHOME's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Reliance Home 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: RELHOME has a low level of unsold assets or inventory.

Debt Coverage by Assets: RELHOME's debt is covered by short term assets (assets are 1.114090x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate RELHOME's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RELHOME's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if RELHOME's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RELHOME's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RELHOME is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RELHOME's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Ravindra Sudhalkar (51yo)

3yrs

Tenure

₹51,985,000

Compensation

Mr. Ravindra Sudhalkar has been Chief Executive Officer of Reliance Home Finance Limited (RHFL) at Reliance Capital Limited since October 1, 2016 and serves as its Executive Director. Mr. Sudhalkar joined  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Ravindra's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

2.7yrs

Average Tenure

44yo

Average Age

Experienced Management: RELHOME's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

1.1yrs

Average Tenure

60yo

Average Age

Experienced Board: RELHOME's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Ravindra Sudhalkar (51yo)

    CEO & Executive Director

    • Tenure: 3yrs
    • Compensation: ₹51.99m
  • Parul Jain (34yo)

    Company Secretary & Compliance Officer

    • Tenure: 2.8yrs
  • Amit Arora

    Business Head of Loans Against Property

    • Tenure: 2.7yrs
  • Reshma Sethi

    Head of Business Excellence

    • Tenure: 2.7yrs
  • Rahul Sood

    Head of Collections

    • Tenure: 2.7yrs
  • Ajith Prabhu

    Executive Officer

    • Tenure: 2.7yrs
  • Pinkesh Shah (44yo)

    Chief Financial Officer

    • Tenure: 1.2yrs

Board Members

  • Amit Bapna (44yo)

    Non-Executive & Non-Independent Director

    • Tenure: 2.5yrs
  • Ravindra Sudhalkar (51yo)

    CEO & Executive Director

    • Tenure: 3yrs
    • Compensation: ₹51.99m
  • Rashna Khan (55yo)

    Independent Director

    • Tenure: 0.4yrs
  • Chhaya Virani (65yo)

    Independent Director

    • Tenure: 0.5yrs
  • Syed Hasnain (65yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: ₹480.00k
  • Ashok Ramaswamy (70yo)

    Independent Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Reliance Home Finance Limited
  • Ticker: RELHOME
  • Exchange: NSEI
  • Founded: 2008
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹1.581b
  • Shares outstanding: 485.06m
  • Website: https://www.reliancehomefinance.com

Number of Employees


Location

  • Reliance Home Finance Limited
  • Reliance Centre
  • 6th Floor
  • Mumbai
  • Maharashtra
  • 400055
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
540709BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2017
RELHOMENSEI (National Stock Exchange of India)YesEquity SharesININRSep 2017

Biography

Reliance Home Finance Limited engages in the housing finance business in India. The company offers a range of home loans, including affordable housing loans, loans against properties, and construction fina ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:56
End of Day Share Price2019/10/18 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.