Scripscan:GIC Housing Finance Ltd
BSE code:511676
cmp:90
Story:It is a company in the housing finance sector and has been promoted by the five general insurance companies and all of them have stakes to the extent of about 45%.In the non promoter category, LIC holds stakes of about 5%.Going by the financials of the company, an EPS of more than Rs 20 makes the stocks rule at PE of 4.5, book value of more than Rs100 .The book value at the end of FY12 will be higher which makes the stock to rule at a price to book of 0.9.A 55% dividend had been declared by the company last year and they have always been liberal in distributing the good dividend due to the of EPS of 20 plus being posted by the company every year. So, 55% dividend that is Rs 5.50 gives a dividend yield of close to about 6% and the Q1 performance looks to be on track and the company should be able to post an EPS of 20 plus yet again.The non-metro pockets of the country are showing a decline in the real estate prices which will eventually attract the middle income groups to go for the housing finance and that will give them a robust business. A top line of Rs 400 crore, EPS of 20 plus makes this a sound investment and one can expect a return of may be about 20% to 22% on an annual basis even, if it is held for a 2-3 years time horizon.
Source:spt
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