Hello Sir,

Hope you are doing well.

Recently, I was going through the details on SRG Housing Finance.

The company primarily focuses on rural and semi-urban housing finance.

Source: SRG Housing Presentation


Company’s AUM has crossed Rs 500 crore + and the management is targeting Rs 750 crore + AUM for FY 25.

Below, we have shared notes from the Investor presentation and Q2 FY 24 con-call of the company. Hope you find the details useful for your own investments or to add the stock to your watch list.


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SRG Housing Finance – Notes from Q2 FY 24 concall

– Company

  • Company has got listed on NSE on 21 August 2023
  • First company from Rajasthan, India which moved from BSE SME to BSE Main board and now listed on the NSE main board
  • Company’s AUM has reached Rs 500 crore plus
  • Company has grown to 65 branches. This year 4 new branches have been opened in Rajasthan. Branches will also be opened in Andhra Pradesh, Telangana and Karnataka
  • AUM – if we take percentage wise, then in Rajasthan it is around – 57%, in Gujarat its 31%, in MP its 12%
  • 30% to 40% of business comes from new branches and about 60% from older branches
  • Opening a branch in the South to check whether we can do full-fledged work here after a year or two

– Q2 Performance

  • Disbursement in Q2 stood at INR 68.09 crore with a growth of 37.03%
  • Our total loan book stood at INR 515.38 crore in quarter two with a growth of 39.28%
  • Housing loan is 64% and LAP is 36%. Salaried loan is 24% and self-employed loan is 76%
  • The average ticket size of the housing loan book is 5.05 Lakhs. The average ticket size of LAP is 10.47 lakhs and the average LTV is 40%
  • Gross NPA is 2.40% and net NPA is 0.56%
  • Our average borrowing cost in half year is 11.13%. The company has maintained a healthy spread of 11.55%

– High cost to income ratio

  • We opened 25 new branches last year, and 3 in this financial year. So, opening of 28 new branches, creating new team, has resulted in higher costs
  • Along with this, we are also creating a new team in our Mumbai office, to work at PAN India level in the next year
  • Manpower costing is high in rural areas
  • The team we are hiring now is for 5000 crores AUM. Till the 1000 crores AUM, I do not need to hire even a single person for my team

– Asset Quality

  • LTV ratio is maintained at 40% of our total portfolio
  • Due to low LTV ratio, we came out of COVID easily. Even after the default of one person, his interest was to save his house and he is ready to give the dues to the Company

– Guidance

  • Our next year’s target is between INR 750 crore to INR 1000 crore
  • We wish to grow minimum 10 times of what we are today
  • My second generation is also in this business We do not have a short term program, we will grow long term. And you will see our name very soon in the top ten housing finance companies of India



Disclaimer: This is not a recommendation to buy/sell SRG Housing Finance. The securities quoted are for illustration only and are not recommendatory.


Best Regards,

Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.com/


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