PNB Housing Finance ideally will be the second best company in this sector, obv after HDFC Limited. It should command better valuations than LIC, India Bulls, Can Fin, Dewan and others for following reasons:-
PNB Hsg has a strong retail deposit liability. No one except HDFC has such deposits. This given long term comfort on managing funding costs. Unlike all others who always borrow in the wholesale market and try to earn spreads in the short term.
PNB Hsg is growing faster than all the larger players like HDFC, LIC, India Bulls etc
Valuations are cheaper than peers on March2017 on price to book value. If you want to evaluate on P/E, then you should look further out into March2018/19 numbers as new equity will be put fully into use.
Management quality and perception also ranks better than everyone, other than HDFC. I attended the analyst meet in Mumbai and spoke to many fund managers there. Everyone agrees that this is very high quality management.
Risky segments like LAP and construction finance are smaller than India Bulls.
Roadside Romeo is back after long time. He was paid agent during CCD ipo. After CCD he disappeared. He advised all to apply CCD with baseless arguments. We know the results of CCD. Please avoid his advises for PNB and all other.
If i remember u actual was negative on Indigo and SH Kelkar. Also u comment was more towards CCD even on Indigo and SH Kelkar page so pls at least tell the truth.
Huge difference in corporate governance between Dewan and most other housing finance companies. DHFL will always value at big discount to other housing finance names.
Roadside Romeo is back after long time. He was paid agent during CCD ipo. After CCD he disappeared. Advices all to apply CCD. Now everyone knows the results.
Mr Anuchit Patel - I wish you had some analytic skills and added value to everyone on this forum. And I don''t care whether I went wrong on CCD (or right on Indigo and SH Kelkar). I will provide a detailed analysis, which you can ignore if you want.
20X for QIB is achievable. Look at the long list of anchor investors. Just shows that nobody got enough in anchor, and everyone will rush in the QIB portion. Most funds have got allotment of 5-10 crores. This is peanuts.
50X for HNI is based on my conversations with leading brokers who are active in IPO finance market