Home Market DHFL stock back to old ways, plunges 20%

DHFL stock back to old ways, plunges 20%


NEW DELHI: Stock of Dewan Housing Finance Corporation moved to the reverse gear again as it tumbled 22 per cent today.

It had rebounded 12 per cent in the previous sessions amid NBFC meltdown.

At 12.02 pm, the stock fell 22 per cent to hit a low of Rs 305.35 on the BSE.

It had fallen 42.43 per cent on Friday following which DHFLs management held a conference call where it clarified that its asset liability management (ALM) is positive over the 0-1 year, 1-2 years and 2-3 year horizons and its exposure to commercial papers is the lowest at 8 per cent of its borrowing that will be maturing in a phased manner.

The company claimed that it has no liquidity constraints till March 2019 and the management does not expect any increase in the cost of borrowings.

The stock has been in news ever since DSP offloaded Rs 200-300 crore worth of the companys short-term bonds at a discount, raising the alarm over tight liquidity in the market.

The news even triggered rumours of a default on payment by DHFL, but the company strongly denied such reports and went on to say there has not been a single instance of delay on its repayment of any liability.

DSP, on its part, clarified that the sale reflected its view on interest rates rather than its credit view on any specific issuer.

On Monday, the clarification saw a sharp recovery in DHFL stock. But on Tuesday, selling resumed on the counter.

For DHFL, Emkay Global estimated 12 per cent of liabilities (nearly 17 per cent of market borrowings) are maturing in three months against 9 per cent of total assets (nearly 3 per cent advances).
The HFC had reported a 35 per cent jump in net profit at Rs 435 crore in the June quarter on the back of 26 per cent YoY rise in total income at Rs 3,156 crore.

The NBFCs outstanding loan book stood at Rs 1,00,980.5 crore at the end of the June quarter while its asset under management (AUM) stood at Rs 1,20,939.5 crore for the same period.

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