Buy Dewan Housing Fin, target of Rs 205: MoneyControl.com


Motilal Oswal
Motilal Oswal has maintained its buy rating on Dewan Housing Finance Corporation with a target price of Rs 205 in its June 09, 2009 research report.
"DHFL has been amongst the fastest growing HFC in the last five years – its loan book and disbursements have registered a CAGR of 39% and 37%, respectively (significantly above peers) over FY04-09. We expect disbursements and loan book to register a CAGR of 25% and 27%, over the next two years."
"DHFL offers a strong combination of value and growth. We expect earnings to grow at a CAGR of 29% over FY10-11. We expect RoA to sustain at 1.7% and RoE to improve from 21% in FY09 to 25% by FY11. Adjusting for the value of key investments, post 20% discount (Rs 22/share), the stock trades at 1.1x FY11E BV and 4.8x FY11E EPS. We maintain Buy, with an SOTP-based target price of Rs 205/share," says Motilal Oswal's research report.