GIC Housing Finance Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (2.2x coverage).
• Dividends per share have been stable in the past 10 years.
• GIC Housing Finance's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• GIC Housing Finance's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

health

Pros

• GIC Housing Finance's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).

Cons

• GIC Housing Finance reports no customer deposits, loans are made up entirely of borrowed funds.

management

Pros

• Neera's remuneration is about average for companies of similar size in India.

Cons

• The average tenure for the GIC Housing Finance board of directors is less than 3 years, this suggests a new board.
• The average tenure for the GIC Housing Finance management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• GIC Housing Finance is not covered by any analysts.

past

Pros

• GIC Housing Finance's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cons

• GIC Housing Finance's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• GIC Housing Finance used its assets less efficiently than the IN Mortgage industry average last year based on Return on Assets.
• GIC Housing Finance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• GIC Housing Finance's 1-year earnings growth is negative, it can't be compared to the IN Mortgage industry average.

value

Pros

• GIC Housing Finance's share price is below the future cash flow value, and at a moderate discount (> 20%).
• GIC Housing Finance's share price is below the future cash flow value, and at a substantial discount (> 40%).
• GIC Housing Finance is good value based on assets compared to the IN Mortgage industry average.
• GIC Housing Finance is good value based on earnings compared to the India market.

Cons

• GIC Housing Finance is overvalued based on earnings compared to the IN Mortgage industry average.
• GICHSGFIN underperformed the Mortgage industry which returned -26.3% over the past year.
• GICHSGFIN underperformed the Market in India which returned -14.5% over the past year.
• NSEI:GICHSGFIN is up 2.4% underperforming the Mortgage industry which returned 7.7% over the past month.
• NSEI:GICHSGFIN is up 2.4% underperforming the market in India which returned 8% over the past month.