In this package, you get high potential growth stock every month with the best possible return ratio. Our intention is to help you discover the stocks which are available to an extreme discount to their intrinsic earnings potentials and much below their market value. They can multi-fold returns in 6-9 months without much downside. Our key objective is to pick stocks which have strong fundamentals but have been beaten down badly. We like to select companies with strong Competitive Advantages and are quoting at a discount to their intrinsic value due to temporary events affecting the company which may have been overplayed by the market. Profit Seeker Package is suitable for whom? – Investors looking for sustainable medium term returns in good stocks. – Has a holding period of less than 6 to 9 months and is willing to stomach volatility. – Investment capital of minimum INR 1,00,000 – For those who wanted to trade in fundamentally sound stocks with minimum risk.

1. Profit Seeker – December 2015 Pick
Dewan Housing Ltd

2. Content Index
• Dewan Housing Finance Limited – Investment Snapshot :- Slide #3
• Company Overview – Insight :- Slide #4
• Financials – Slide #9

3. Dewan Housing Ltd – Investment Snapshot
(as on Jan 03, 2016)
Recommendation :- BUY
Maximum Portfolio Allocation :- 2%
Investment Phases & Buying Strategy
Time Frame:- 3 to 6 months
1st Phase (Now) of Accumulation :- 50%
Current Accumulation Range :- 230-237Rs
DHFL is our typical value stock, but a Stock which is a Good
Investment under current Market conditions. It has a presence in a
space which offers enormous potential and is also trading at
reasonable valuations which will deliver superior returns in the
medium term.
Core Investment Thesis :
The company is in the housing finance space and has a strong
brand which has been its strength. The company has good reach
in the LMI space and is a market leader in the segment. The
company is also likely to benefit from increasing mortgage market
which makes it an attractive bet.
Current Market Price – Rs. 236.05
Book Value – 158.89
Bloomberg / Reuters Code –DEWH. IN/
DWNH.BO
BSE / NSE Code – 511072 / DHFL
Market Cap (INR CR) – 6886
P/BV – 1.49
Face Value – Rs. 10
52 Week High / Low – 569.20/198.30
Promoter’s Holding - 34.90%
Other Holdings -65.10%

4. Company Overview
•DHFL primarily provides housing finance to individuals especially to the low and lower-middle-income
groups in Tier-I, Tier-II, Tier-III and Tier-IV cities.
• DHFL apart from housing loans also offers non-housing loans such as loan against property and developer
loans.
•DHFL has total AUM of Rs.569 Bn with Pan India presence apart from a healthy asset quality with Gross NPA
of 0.84%.
•DHFL has a large distribution network of 364 company operated locations across India and about 372
locations through alliances.

5. Differentiated Business Model

6. Market Leader -LMI Segment
•DHFL is the largest player in LMI segment and the second largest private sector player in the housing
finance space.
• About 80% of loan portfolio comprises housing loans given for purchase of homes, extension &
improvements and self construction.
•DHFL is best placed to cater to the LMI segment’s demand due to its expertise & strong branch network in
Tier II & III cities.
• DHFL has been able to maintain a healthy portfolio with low delinquency rates.

7. Pan India Player
•DHFL has focused on under‐served areas in Tier II/III cities and peripheral areas of Tier I cities with
pan‐India presence.
• DHFL is rapidly expanding its presence and has added >75 branches in H1FY15 to take network to 367
branches, apart from 151 alliance centers.
•DHFL has, besides a strong network in West and South India, also tied up with banks in an endeavour to
widen its reach.
• DHFL is likely to benefit immensely from government focus on affordable housing which will be most
beneficial for the company due to its strong Tier-2 & 3 presence.

8. Robust Asset Liability Management
•DHFL has a robust asset-liability management which was evident as the company did not have requirement
for availing NHB emergency refinancing in the 2008 crisis.
• The borrowing profile of DHFL in FY14 was Banks & FI - 61%,NHB - 3%, Fixed Deposits -8% and Capital
market - 28%.
•DHFL has reduced cost of borrowings over the past few years by increasing the borrowing mix from Debt
markets.
• DHFL target borrowing profile in 2 years is Banks & FI – 45-55%,Capital Markets – 35-40%,NHB, FII’s and
other sources -20-25%.

9. Financials

10. THANK YOU