Fundamentals

UNIPLY INDUSTRIES

Ticker: 532646 BUY: Rs.473.30
Target: Rs.540

Uniply Industries is a fully-integrated end-to-end building solutions provider. Building solutions industry is expected to grow at 7 per cent CAGR by 2022 and home furnishings would be the largest contributor. Office and institutional furniture will drive the demand in this industry. Also, this industry is dependent upon the growth in real estate and hospitality & tourism sectors. On the financial front, company's revenue was 18.3 per cent in Q3FY18. The operating profit increased by 58.8 per cent YoY while PAT jumped by 56.3 per cent YoY in Q3FY18. Over FY15-17, its revenue and PAT grew at a CAGR of 37.4 per cent and 81.8 per cent , respectively. For FY17, it delivered ROE of 17.1 per cent . Considering the positive industry outlook and robust financial growth, we recommend it as a BUY.



DEWAN HOUSING FINANCE CORPORATION

Ticker: 511072 BUY: Rs.620.90
Target: Rs.695

The company offers housing loans including self-construction, project loans, purchase of re-sale & new house property and non-housing loans including mortgage, commercial property and SME loans. In Q3FY18, it reported 29.4 per cent growth in AUM. The project finance and SME segments grew by 55 and 72 per cent , respectively on YoY basis. The non-individual loan book has shown strong growth while the GNPA stood stable at 0.96 per cent . NIM of the company is gradually improving and with its lower credit cost, the return ratios are expected to get stronger. Smart cities, affordable housing and ‘Housing for All' initiative will trigger the demand for housing loans in the upcoming years. We expect the company's loan book will get stronger on the back of rising demand. Considering these factors, we recommend it as a BUY.