GIC Hsg Fin

PSU home loan provider GIC Housing Finance reported 2.8% QoQ growth in operating income to Rs. 205 crore, after an already robust Q4FY15. As provisions for contingencies declined 12% QoQ to Rs. 4 crore, from Rs. 4.5 crore in Q4FY15, net profit improved 6% sequentially to one of the best ever quarterly net profits of Rs. 28 crore, translating into EPS of Rs. 5.25, vis-à-vis EPS of Rs. 4.71 clocked in Q1FY15, Rs. 4.95 in Q4FY15 and Rs. 19.12 in FY15.

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On current BVPS of Rs. 128, share is ruling at PBV multiple of 1.87x, which is one of the cheapest among the housing finance companies. On a PE multiple basis too, valuation of 11.4x is amongst the lowest among peers.