Delayed cheer for Dewan Housing's 1:1 bonus

Wadhwan Group’s home loan arm Dewan Housing Finance is trading up the green, higher by almost 3%, now at Rs. 487, when the broader markets are marginally in the red. Company has announced a 1:1 bonus for its equity shareholders along with good set of Q1FY16 results. However, as soon as the result and bonus announcement came in, the share was ruling soft, going down to as much as Rs. 473.50, before bouncing back steadily. Thus, share seemed to have got a delayed reaction from traders and investors.  

Like other listed housing finance peers, Dewan Housing’s results were also healthy, with 2.7% QoQ rise in net interest income to Rs. 418 crore, despite quarterly disbursement at Rs. 4,938 crore, down 22% QoQ (partly due to year end push in March) but up 14% YoY. PAT growth was healthier at 7% QoQ to Rs. 173 crore, leading to EPS of Rs. 11.89.

Share remains one of the cheapest housing finance stocks, with PBV of just 1.46x, as of 30-06-15. With promoter holding of 35% and institutions owning another 30%, company seems to enjoy good shareholder patronage too, including that of Rakesh Jhunjhunwala.