21 July 2016
1QFY17 Results Update | Sector:
Financials
BSE SENSEX
27,711
S&P CNX
8,510
CMP: INR218
TP: INR331 (+52%)
Dewan Housing
Buy
Lower operating expenses sustains robust performance
Dewan Housing Finance’s (DEWH) 1QFY17 PAT grew 16.2% YoY to INR2b (inline).
Reduction in cost to income ratio by 190bp YoY to 28.1% - a 33 quarter low. AUM
and disbursements growth remains healthy at +20/26% YoY.
Reduction in cost of funds coupled with shift in the portfolio towards high yielding
segment helped DEWH to maintain margins at 2.9% despite high competitive
intensity in core home loan segment. Cost of funds declined 40bp+ YoY to ~9.5%
Asset quality remained broadly stable, with GNPLs of 98bp v/s 93bp in 1QFY16.
Coverage ratio remains healthy at ~100%.
Annualized repayments rate of 24% v/s run-rate of 18% were due to higher pre-
payments and the changing loan mix toward the non-housing portfolio (which
formed 28% of AUM v/s 25% a year ago).
Other highlights:
(1) There was a negative impact on net worth of INR200m due to
treatment of DTL, and of another INR200m due to amortization of discount of zero
coupon bonds. (2) Average ticket size stood at INR1.29m.
Valuation and view:
DEWH continues to capitalize on its mortgage lending
expertise in an underpenetrated market. We expect AUM growth to remain higher
than industry average at 20%+. In an environment where most of the financials
facing asset quality pressure, mortgage financiers (including DEWH) asset quality
remains impeccable. Margins can improve further with a rating upgrade, reduction
in base/wholesale rates and change in mix towards high yielding loans. Moreover,
management’s commitment to lower cost can provide delta to earnings and
further reduction in C/I ratio will lead to re-rating (key concern for investors). The
stock trades at 1x FY18E P/B and 6.0x P/E, a steep discount compared with other
HFCs. Maintain
Buy
with a TP of INR331 (1.5x FY18E ABV).
Bloomberg
Equity Shares (m)
M.Cap. (INR b) / (USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val (INR m)
DEWH IN
291.4
63.5/0.9
268/141
3/3/-2
341
Financials & Valuation (INR Billion)
Y/E MAR
NII
PPP
Adj. PAT
EPS (INR)
EPS Gr. (%)
BV (INR)
RoAA (%)
RoE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
P/ABV (x)
Div. Yld (%)
2016 2017E 2018E
16.6
12.8
7.3
25.0
17.2
171.9
1.2
15.1
37.1
8.7
1.3
1.3
3.7
19.9
15.3
8.7
29.7
18.7
194.1
1.2
16.2
23.2
7.4
1.1
1.1
2.7
24.1
18.8
10.6
36.4
22.7
220.9
1.2
17.5
23.2
6.0
1.0
1.0
3.3
Sunesh Khanna
(Sunesh.Khanna@MotilalOswal.com); +91 22 3982 5521
Piran Engineer
(Piran.Engineer@MotilalOswal.com); +91 22 3980 4393
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Dewan Housing
Exhibit 1: Quarterly performance and reason for deviations
Particulars
Total income
Interest expenses
Net Income
Opex (inc. provisions)
Profit before Tax
Tax Provisions
PAT before extraordinary item
Extraordinary Gain
PAT after extraordinary item
Int Exp/ Op. Inc. (%)
Cost to Income Ratio (%)
Tax Rate (%)
1QFY17A
19,593
14,754
4,840
1,811
3,029
1,015
2,014
0
2,014
75.3
28.1
33.5
1QFY17E
21,141
16,116
5,025
1,925
3,100
1,057
2,043
0
2,043
76.2
28.4
34.0
v/s Est.
-7
-8
-4
-6
-2
-4
-1
-1
Comments
Reported margins at 2.91% down 5bp YoY
Other operating expenses were contained
Tax rate of 34%
PAT in-line
Source: Company, MOSL
Business momentum remains healthy; AUM growth +20% YoY
Growth momentum continued during the quarter, with AUM grew +20% YoY
(3.6%QoQ) to INR720b, whereas loan book grew 18% YoY (3.0% QoQ) to INR
636b. Sanctions grew by only 12% YoY to INR88bn, significantly lower than the
growth witnessed in the past several quarters. Disbursements sustained robust
growth of 26% YoY to INR62b.
DEWH securitized assets worth INR11.5b during the quarter; off balance sheet
assets now stand at INR84b i.e. 12% of AUM.
The proportion of non-housing loans (Commercial, LAP, Builders and SME
financing) in the overall mix increased to 28% v/s 25% in 1QFY16.
The average ticket size for the outstanding loan book increased to INR1.29m v/s
INR1.24m in 4QFY16, whereas loan to value stood at 49% v/s 56% in 3QFY15.
NIM declined 5bp YoY; operating expenses under control
Reported NIMs declined 5bp YoY to 2.91%, despite a 43bp YoY decline in cost of
funds to 9.56%, due to moderating yields on account of competitive pressures.
Management highlighted that despite high yielding non-mortgage share
increasing, yields are under pressure due to intense competition and
incremental mortgage business is happening at 10.25%.
Lower cost of fund is on back of company’s effort to replace its high cost bank
funding with lower priced market papers. DEWH has been able to bring down its
bank borrowing to 52% from 55% in 1QFY16. Management expects to bring
down bank borrowings to 45% in next 2 years. Moreover DHFL has benefitted
from reduction in base rates by banks and we expect further softening of rates
over the next 1-2 years.
Cost-to-income ratio (calculated) declined 190bps YoY to 28.1% in 1QFY17 on
the back of rigorous operational cost-control. We expect the improvement in
operating expenses to sustain in the ensuing quarters.
Asset quality stable; PCR of +99%
GNPAs remained broadly unchanged at 98bp (93bp in 1QFY16). The company
continues to adequately provide for all the GNPAs (PCR of +99%) resulting in
almost nil NNPA. GNPLs in home loan segment stands at 74bps whereas non-
mortgage segment are 124bps.
2
21 July 2016

Dewan Housing
Provisions were higher at INR450m as the company has to make higher
provisions for non-housing loans.
Other Highlights
There was a negative impact of INR200mn on net worth on account of
treatment of DTL as well as another INR200mn impact due to amortization of
discount of zero coupon bonds
Capital adequacy stands at 17.4%, with tier 1 capital at 12.7%
Valuation and view
DEWH continues to perform well on growth and asset quality front; we expect
the loan growth to remain healthy at a CAGR of 23% over FY16-18 and asset
quality remains healthy with +100% provision coverage ratio.
Margins are at 2.9% and tailwinds for improvement exist as wholesale funds
have declined sharply and the company continues to replace bank borrowings
with bonds. Management expects to bring down bank borrowings to 45% over
the next 2 years. Moreover rating upgrade to AAA (by CARE Ratings) coupled
with reduction in banks base rates are likely to provide further leg up to
margins.
Management is committed to bring down the costs structure by improving
productivity, rationalizing branch network, centralizing back-end operations.
The stock is trading at 1.0x FY18E ABV, a steep discount compared to other HFCs
(all trading above 2.4x P/B), expected improvement in margins and reduction in
cost can lead to narrowing of this gap. We estimate RoA/RoE at 1.3%/19.0% for
FY18. Better than expected growth and cost control should provide upsides to
our RoA/RoE estimates. Maintain Buy with a price target of INR331 (1.5x FY18
Adjusted book value).
Key concerns:
1) Though the asset quality performance has remained healthy, it
remains monitorable 2) Cost to income ratio, despite the improvement in the
quarter, remains higher than peers
Exhibit 3: One year forward P/B chart
Avg(x)
42.5
Min(x)
32.8
3.0
2.5
2.0
1.5
1.0
4.4
0.5
0.0
0.3
1.1
1.1
PB (x)
Peak(x)
Avg(x)
Min(x)
2.8
Exhibit 2: One year forward P/E chart
47
32
18.3
17
2
PE (x)
Peak(x)
Source: MOSL
Source: MOSL
21 July 2016
3

Dewan Housing
Conference call highlights
Industry outlook:
While competition in affordable housing finance has been
increasing lately, there is good traction in home sales to the LMI segment in tier
2/3 towns. Both private sector builders as well as the government are
participants in this segment. As a result, management is confident of achieving
16-18% growth in disbursements on a sustained basis.
Project finance:
The company disburses loans generally in the range of INR350-
550m to builders in the affordable home segment only. This helps in establishing
relationships with builders as well as gives it access to final home buyers for
residential home loans. While the proportion of project loans has increased to
~10% of total AUM, management does not wish to exceed 12-15% of AUM.
LAP:
The company disburses loans against property at a ticket size of INR3-5m
and average LTV at origination of 50-55%. The companies typically have a
turnover of less than INR200m. In terms of geography, west India constitutes
40-45% of AUM in LAP, north 27%, south 20% and Central+East region 10%. In
addition, this business is concentrated in tier 1 regions only. Management is
comfortable with the proportion of LAP in the range of 18-25%. However, the
main focus of management will not be on LAP.
The company formulated a cost-cutting plan a few quarters ago, which is well on
track. There has been increased use of technology, especially on the loan
processing side. Management also acknowledged that the ~100 branches
opened in the last 1.5-2 years have not yielded the intended results and are yet
to break even.
Disbursement break-up:
Home loans – INR42b; LAP – INR11.5b; SME financing –
INR2.2b; Project finance – INR6.5b.
21 July 2016
4

Dewan Housing
Exhibit 4: Quarterly Snapshot
FY15
1Q
Profit and Loss (INR m)
Interest Income
Interest Expenses
Net Interest Income
Fees and Other Income
Total Income
Operating Expenses
Employee
Others
Operating Profits
Provisions
PBT
Taxes
PAT
Asset Quality (%)
GNPA
NNPA
Provisions coverage
Ratios (%)
Cost to Income
Tax Rate
CAR
Tier I
Margins Reported - Cumulative
(%)
Cost of Funds
NIMs
Business (INR b)
Sanctions
Disbursements
Loan book
Average ticket size Rs lac
Borrowing Mix (%)
Banks and FI
NHB
NCD
Deposits
Others
Multilateral Agencies
13,985
10,706
3,279
281
3,560
1,086
449
637
2,474
250
2,224
753
1,471
2Q
14,120
10,801
3,319
387
3,706
1,226
472
754
2,480
200
2,280
758
1,523
3Q
14,884
11,336
3,548
381
3,929
1,264
490
774
2,665
250
2,415
819
1,596
4Q
15,406
11,754
3,652
419
4,071
1,210
549
661
2,861
350
2,511
888
1,623
1Q
16,331
12,343
3,988
201
4,189
1,256
550
705
2,934
320
2,614
881
1,733
2Q
17,640
13,575
4,065
477
4,542
1,318
549
769
3,223
450
2,773
970
1,804
FY16
3Q
18,461
14,197
4,264
392
4,656
1,372
563
809
3,285
480
2,805
946
1,859
4Q
19,159
14,786
4,373
507
4,880
1,550
615
935
3,330
500
2,830
934
1,897
FY17
1Q
19,318
14,754
4,564
275
4,840
1,361
628
733
3,479
450
3,029
1,015
2,014
Variation (%)
QoQ
YoY
1
0
4
-46
-1
-12
2
-22
4
-10
7
9
6
18
20
14
37
16
8
14
4
19
41
16
15
16
0.8
0.0
104.6
30.5
33.9
16.5
11.6
0.8
0.0
107.4
33.1
33.2
16.2
11.6
0.8
0.0
108.2
32.2
33.9
15.5
10.9
0.8
0.0
100.2
29.7
35.4
16.5
12.5
0.8
0.0
106.9
30.0
33.7
15.8
12.0
0.8
0.0
111.3
29.0
35.0
15.3
11.6
0.8
0.0
110.8
29.5
33.7
16.4
12.6
1.0
0.0
101.7
31.8
33.0
17.0
13.3
1.0
0.0
99.3
28.1
33.5
17.5
12.7
10.5
2.8
59
43
428
11
63
5
24
7
0
1
10.5
2.8
61
43
447
11
64
4
25
8
0
0
10.3
2.8
71
49
478
12
60
4
28
8
0
0
10.3
2.9
94
63
510
12
58
3
28
8
0
3
10.0
3.0
79
49
538
12
55
3
32
8
0
3
9.9
2.9
77
50
563
12
54
3
33
8
0
2
9.6
2.9
93
64
590
12
53
3
32
8
0
4
9.7
3.0
128
78
618
12
53
2
33
8
0
4
9.6
2.9
88
62
636
13
52
2
32
9
0
5
-31
-21
3
12
26
18
Source: Company, MOSL
21 July 2016
5

Dewan Housing
Story in charts
Exhibit 5: Sanctions growth declined to 12% YoY (INR b)
Sanctions (INR b)
YoY Gr. (%)
Exhibit 6: Disbursement growth robust at +26% YoY
Disbursement (INR b)
YoY Gr. (%)
33 39 51 48 44
59 61 71 94 79 77 93 128 88
59 73
24 30 29 36 33 40 56 43 43 49 63 49 50 64 78 62
Source: Company, MOSL
Source: Company, MOSL
Exhibit 7: NIM declined marginally (%)
Exhibit 8: AUM Mix: Non-retail now forms 28% of AUM
Individual Loans
5
13
5
14
5
14
6
16
5
16
Commercial / LAP
6
17
5
18
7
18
6
18
6
17
Project Loans
8
16
9
16
10
16
82
81
81
79
79
77
77
75
74
76
74
72
72
Source: Company, MOSL
Source: Company, MOSL
Exhibit 9: High cost bank borrowings decrease to 300bp YoY
12
6
12
70
Banks
6
7
14
5
6
6
20
12 19
68
68
69
Money market
7
8
8 11
4
4
5
3
24 25 28 28
63
64
NHB
10
3
32
10
3
33
Others
12
3
32
12
2
33
15
2
32
Exhibit 10: AUM growth slowing down (%)
AUM (INRb)
24.3
28.0
28.1
26.9
28.0
AUM growth (%)
27.3
25.3
22.2
20.0
60
58
55
54
53
53
52
469
494
526
569
600
628
660
695
720
Source: Company, MOSL
Source: Company, MOSL
21 July 2016
6

Dewan Housing
Exhibit 11: Valuation Metrics
Rating
66
CMP
Mcap
EPS (INR)
P/E (x)
BV (INR)
P/BV (x)
RoA (%)
RoE (%)
FY18
11.8
19.6
15.2
15.4
22.7
17.6
9.4
8.7
11.7
13.7
11.7
9.7
9.5
6.8
11.2
8.1
11.0
5.8
9.4
6.2
(INR) (USDb) FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17
ICICIBC*
Buy
262
23.1
18.1 20.8 10.7 8.0
145
159 1.25 1.05 1.19 1.22 11.1
HDFCB
Buy
1,228 47.1
58.4 70.3 21.0 17.5 332
386 3.70 3.18 1.89 1.86 18.9
AXSB
Buy
538
19.4
35.0 41.0 15.4 13.1 251
285 2.14 1.89 1.45 1.43 14.7
KMB*
Buy
761
21.1
26.1 33.7 29.1 22.6 207
239 3.68 3.18 1.50 1.70 14.2
YES
Buy
1,155
7.4
78.9 97.3 14.6 11.9 391
468 2.96 2.47 1.81 1.83 22.0
IIB
Buy
1,136 10.2
50.5 63.8 22.5 17.8 334
389 3.40 2.92 1.92 1.96 16.2
IDFC Bk
Buy
50
2.6
3.0
4.1
16.9 12.2
42
46
1.19 1.10 1.09 1.12 7.2
FB
Neutral
61
1.6
3.7
4.5
16.3 13.6
50
53
1.22 1.14 0.64 0.65 7.7
DCBB
Buy
100
0.4
7.4
8.6
13.5 11.6
69
78
1.45 1.29 0.98 0.93 11.3
JKBK
Neutral
68
0.5
17.6 21.2
3.8
3.2
146
162 0.46 0.42 0.99 1.05 12.7
SIB
Buy
21
0.4
3.1
3.7
7.0
5.8
30
33
0.72 0.66 0.61 0.64 10.7
Private Aggregate
133.9
19.1 16.0
2.59 2.29
SBIN (cons)*
Buy
226
26.5
19.3 24.3 11.7 9.3
240
259 1.00 0.92 0.49 0.54 8.3
PNB
Neutral
124
3.7
15.7 19.9
7.9
6.2
200
220 0.62 0.56 0.44 0.50 8.2
BOI
Neutral
107
1.4
9.3
23.5 11.6 4.6
337
356 0.32 0.30 0.12 0.27 2.8
BOB
Buy
152
5.3
14.7 18.7 10.4 8.2
159
173 0.96 0.88 0.48 0.54 9.6
CBK
Neutral
252
2.1
33.1 42.4
7.6
5.9
505
537 0.50 0.47 0.31 0.36 6.7
UNBK
Buy
131
1.4
26.8 36.7
4.9
3.6
318
351 0.41 0.37 0.43 0.53 8.7
OBC
Neutral
112
0.5
22.1 27.9
5.1
4.0
473
494 0.24 0.23 0.28 0.32 4.8
INBK
UR
148
1.1
22.2 29.1
6.7
5.1
298
320 0.50 0.46 0.49 0.56 7.7
ANDB
Buy
58
1.8
2.9
8.2
19.8 7.1
129
136 0.45 0.43 0.15 0.39 2.3
Public Aggregate
43.8
11.5 8.5
0.75 0.70
Banks Aggregate
177.6
16.5 13.2
1.61 1.47
HDFC*
Buy
1,332 31.9
40.1 46.3 23.0 18.4 194
221 4.39 3.53 1.89 2.10 20.0
LICHF
Buy
503
3.8
39.5 47.3 12.7 10.6 213
251 2.36 2.00 1.49 1.51 20.1
IHFL
Buy
714
4.6
68.2 84.0 10.5 8.5
280
315 2.55 2.27 3.84 3.78 23.4
GRHF
Buy
291
1.6
8.3
10.7 35.0 27.3
28
35 10.25 8.24 2.33 2.34 32.4
REPCO
Buy
835
0.8
30.3 39.0 27.6 21.4 179
214 4.65 3.90 2.14 2.17 18.2
DEWH
Buy
218
1.0
29.4 36.2
7.4
6.0
194
221 1.12 0.99 1.18 1.20 16.1
Housing Finance
43.6
20.6 17.4
4.16 3.67
RECL
Neutral
199
3.0
59.2 68.6
3.4
2.9
336
389 0.59 0.51 2.63 2.55 18.9
POWF
Neutral
207
4.1
46.8 49.1
4.4
4.2
72
107 2.89 1.94 2.69 2.35 85.1
Infra Finance
7.1
3.9
3.5
1.11 0.90
SHTF
Buy
1,168
4.0
75.5 94.2 15.5 12.4 507
581 2.30 2.01 2.17 2.27 15.7
MMFS
Buy
317
2.7
15.5 18.8 20.4 16.9 119
133 2.66 2.39 2.14 2.26 13.7
BAF
Buy
8,710
7.1
308.1 380.8 28.3 22.9 1,631 1,956 5.34 4.45 3.14 3.02 20.6
MUTH
Buy
275
1.7
24.9 32.0 11.0 8.6
157
177 1.75 1.55 3.29 3.47 16.7
SKSM
Buy
764
1.5
46.2 47.9 16.5 16.0 153
201 4.99 3.80 6.28 4.69 35.5
Asset Finance
16.9
19.2 15.7
3.08 2.78
NBFC Aggregate
67.7
14.0 12.1
3.02 2.62
Financials
245.3
15.7 12.9
1.85 1.67
*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries
22.1
20.9
28.2
33.5
19.8
17.4
18.9
55.0
17.1
15.0
21.2
19.2
27.1
21 July 2016
7

Dewan Housing
Financials and valuations
Income Statement
Y/E March
Operating Income
Interest Expended
Net Interest Income
Change (%)
Fee Income
Net Income
Change (%)
Operating Expenses
Operating Profit
Change (%)
Provisions
% of average loans
Extra ordinary Income
PBT
Tax
Tax Rate (%)
Reported PAT
Change (%)
Adjusted PAT
Change (%)
Proposed Dividend
Balance Sheet
Y/E March
Share Capital
Reserves & Surplus
Net Worth
Borrowings
Change (%)
Total Liabilities
Investments
Change (%)
Loans
Change (%)
Net Fixed Assets
Net Current Assets
Total Assets
E: MOSL Estimates
2012
28,633
23,496
5,138
28.6
2,395
8,899
24.9
3,349
5,551
21.6
463
0.20
250
5,338
1,304
24
4,034
12.9
3,784
17.5
478
2013
37,977
31,194
6,783
32.0
1,992
9,596
7.8
3,039
6,557
18.1
450
0.2
0
6,107
1,588
26
4,519
12.0
4,519
19.4
720
2014
46,705
37,826
8,879
30.9
2,280
11,851
23.5
3,800
8,051
22.8
700
0.2
0
7,351
2,061
28
5,290
17.1
5,290
17.1
1,202
2015
57,160
44,596
12,564
41.5
1,860
15,221
28.4
4,740
10,480
30.2
1,050
0.2
0
9,430
3,218
34
6,213
17.4
6,213
17.4
968
2016
71,541
54,900
16,641
32.4
1,577
18,267
20.0
5,495
12,771
21.9
1,750
0.3
0
11,021
3,730
34
7,292
17.4
7,292
17.4
2,800
2017E
85,066
65,197
19,868
19.4
1,735
21,603
18.3
6,274
15,329
20.0
2,200
0.3
0
13,129
4,477
34
8,652
18.7
8,652
18.7
2,016
2018E
102,475
78,356
24,118
21.4
1,943
26,061
20.6
7,247
18,815
22.7
2,700
0.3
0
16,115
5,495
34
10,620
22.7
10,620
22.7
2,474
(INR Million)
2019E
125,534
95,817
29,717
23.2
2,234
31,951
22.6
8,315
23,636
25.6
3,200
0.3
0
20,436
6,928
34
13,508
27.2
13,508
27.2
3,147
2012
1,168
19,159
20,327
246,717
19.2
268,971
2,141
-46.8
254,694
27.8
2,582
6,059
268,971
2013
1,282
31,089
32,371
322,527
30.7
354,898
2,750
-36.3
342,219
34.4
4,379
5,549
354,898
2014
1,284
34,465
35,750
398,749
23.6
434,498
7,215
71.9
408,732
19.4
9,877
8,674
434,498
2015
1,457
44,901
46,358
494,456
24.0
540,814
10,062
19.8
515,109
26.0
9,846
5,796
540,814
2016
2,918
47,252
50,170
611,037
23.6
661,207
8,932
17.9
617,750
19.9
10,338
24,187
661,207
2017E
2,918
53,733
56,651
733,238
20.0
789,889
9,379
17.5
759,833
23.0
10,855
9,823
789,889
(INR Million)
2018E
2019E
2,918
2,918
61,538
71,994
64,456
74,912
899,186 1,097,007
22.6
22.0
963,642 1,171,919
9,660
9,950
16.6
16.0
926,996 1,130,935
22.0
22.0
11,289
11,741
15,696
19,293
963,642 1,171,919
21 July 2016
8

Dewan Housing
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield - Housing loans
Avg. Cost of Funds
Interest Spread on Housing loans
Net Interest Margin (On AUM)
Profitability Ratios (%)
RoAE
RoAA
Int. Expended/Int.Earned
Other Inc./Net Income
Efficiency Ratios (%)
Fees/Operating income
Op. Exps./Net Income
Empl. Cost/Op. Exps.
Asset-Liability Profile (%)
Loans/Borrowings Ratio
Debt/Equity (x)
Gross NPA (INR Mn)
Net NPA (INR Mn)
Valuations (Consolidated)
Book Value (INR)
Growth (%)
Price-BV (x)
Adjusted BV (INR)*
Price-ABV (x)
OPS (INR)
Growth (%)
Price-OP (x)
EPS (INR)
Growth (%)
Price-Earnings (x)
Dividend Per Share
Dividend Yield (%)
E: MOSL Estimates
2012
12.6
10.4
2.25
2.263
2013
12.7
11.0
1.76
2.27
2014
12.4
10.5
2.0
2.2
2015
12.4
10.0
2.4
2.5
2016
12.6
9.9
2.7
2.7
2017E
12.4
9.7
2.7
2.8
2018E
12.2
9.6
2.6
2.8
2019E
12.2
9.6
2.6
2.8
21.1
1.53
82.1
42.3
17.1
1.45
82.1
29.3
15.5
1.34
81.0
25.1
15.1
1.27
78.0
17.5
15.1
1.21
76.7
8.9
16.2
1.19
76.6
8.0
17.5
1.21
76.5
7.5
19.4
1.27
76.3
7.0
43.1
37.6
35.5
30.4
31.7
46.3
28.3
32.1
46.4
17.7
31.1
41.4
12.3
30.1
41.4
11.3
27.4
41.7
10.3
27.4
41.5
9.5
27.4
41.6
96.9
12.1
1,316
0
94.2
10.0
2,632
431
97.6
11.2
3,948
933
96.0
10.7
4,738
726
98.9
12.2
5,686
509
96.5
12.9
6,823
293
97.0
14.0
8,187
88
97.0
14.6
9,825
-87
87
16.8
2.5
72.0
3.0
23.8
8.7
9.2
14.8
5.6
14.7
1.8
0.8
126
45.1
1.7
126
1.7
26
7.6
8.5
17.6
18.7
12.4
2.5
1.1
139
10.3
1.57
139
1.57
31
22.6
7.0
20.6
16.9
10.6
4.4
2.0
159
14.3
1.37
159
1.37
36
14.8
6.1
21.3
3.5
10.2
3.5
1.6
172
8.1
1.3
169
1.3
44
21.7
5.0
25.0
17.2
8.7
8.0
3.7
194
12.9
1.1
193
1.1
53
20.0
4.1
29.7
18.7
7.4
5.9
2.7
221
13.8
1.0
221
1.0
64
22.7
3.4
36.4
22.7
6.0
7.3
3.3
257
16.2
0.8
257
0.8
81
25.6
2.7
46.3
27.2
4.7
9.3
4.2
21 July 2016
9

Dewan Housing
Corporate profile
Dewan Housing Finance’s (DEWH) promoted by the
Wadhawan Group in 1984, is the 3rd largest
housing finance company in India AUM of
INR720bn as on June 2016 (after HDFC and LIC
Housing Finance). DHFL offers home loans to low
and middle income segment in tier II and III cities.
DEWH is the third largest HFC in India with. DHFL is
present at 367 locations across India via branches,
subsidiaries and alliances with public sector banks.
Company description
Exhibit 12: Sensex rebased
Exhibit 13: Shareholding pattern (%)
Jun-16
Promoter
DII
FII
Others
34.9
2.6
32.2
30.3
Mar-16
34.9
2.6
33.1
29.4
Jun-15
34.9
3.8
26.7
34.6
Exhibit 14: Top holders
Holder Name
Hemisphere Infrastructure India Pvt Limited
Galaxy Infraprojects And Developers Pvt Ltd
Silicon First Realtors Private Limited
Jhunjhunwala Rakesh Radheshyam
Lazard Emerging Markets Small Cap Equity Trust
%
Holding
3.7
3.6
3.5
3.4
1.7
Note: FII Includes depository receipts
Exhibit 15: Top management
Name
Kapil Wadhawan
Harsil Mehta
Dheeraj Wadhawan
Niti Arya
Designation
Chairman & MD
CEO
Director
Company Secretary
Exhibit 16: Directors
Name
Kapil Wadhawan
Dheeraj Wadhawan
G P Kohli*
M Venugopalan*
*Independent
Name
V K Chopra*
Rajiv Kumar*
Vijaya Sampath*
Exhibit 17: Auditors
Name
Chaturvedi & Shah
Jayshree Dagli & Associates
Rajendra Neeti & Associates
T R Chadha & Co
Type
Statutory
Secretarial Audit
Statutory
Statutory
Exhibit 18: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
29.7
36.4
Consensus
forecast
29.6
34.5
Variation
(%)
0.2
5.4
21 July 2016
10

PRODUCT GALLERY
Our recent reports on Dewan Housing
Our recent reports on Financial sector
Our recent reports on other Financial companies

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DEWAN HOUSING FINANCE
No
No
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