GIC Housing Finance came out with its Q2, FY 11 Results wherein its Top-line growth was marginally below expectation due to ameliorating sentiment in the Real Estate and Construction sector in India.
During the Sep quarter, the Operating Income of GIC rose by 14% to Rs 83 Cr (Q2-11) from Rs 73 Cr (Q2-10) whereas on a Q-o-Q basis the Operation income recorded a rise of around 8% from Rs 77 Cr (Q1-11). With the help of better management of Liabilities the Interest expenses as a % of Operating Income were lower on Y-o-Y basis to just under 60% (Q2-11) as equated to 62.2% (Q2-10); however, on a sequential comparison, they rose by around 300 bps from 57% (Q1-11).
Despite a modest performance on Income front, GIC's Disbursal were higher than estimates and the company has disbursed Rs 489 Cr during the first half of FY11. Historically, disbursal for GIC have been stronger in the 2nd half. They are confident of crossing Rs 1000 Cr in terms of disbursal by year end.
As per conservative estimates, an increase of around 20% in disbursal for FY 11 can be expected. Taking the current developments into consideration, the Disbursal can move up to Rs 986 Cr while in FY12; the same number is expected to surge over Rs 1250 Cr recording a CAGR of more than around 36% over the next two years.
At the CMP of Rs 155, the stock is trading at 10.7X & 1.9X its FY-11E EPS and Book Value and 8.4x & 1.7x its FY-12E EPS and Book Value. Considering the healthy growth prospects of the company one can BUY it with a price target of Rs.200 in 12-18 months.
No comments:
Post a Comment