Motilal Oswal HF

Company Overview Motilal Oswal Home Finance Limited (formerly Aspire Home Finance Corporation Ltd) is a fast growing housing finance company. The company is a subsidiary of Motilal Oswal Financial Services limited and was incorporated on 1st October 2013. Business Model MOHFL operates in the ‘affordable housing finance’ segment where average loan size remains below ₹ 25 lacs. The company has 104 branches across 9 states (Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Rajasthan, Chhattisgarh, Tamil Nadu, Telangana and Andhra Pradesh). As on 31-March-2021, MOHFL reported total income of ₹ 545 crores with net profit of ₹ 40 crores. The loan book of the company stood at ₹ 3512 crores and the average ticket size of the loan was ₹8.6 lacs. The gross NPA and net NPA figures stood at 2.2% and 1.52% respectively. The company’s cost of borrowing and NIM was 9.25% and 6.1% respectively. The state wise loan book mix of the company consisted of Maharashtra (66%), Gujarat (13%), Madhya Pradesh (8%), Tamil Nadu (4%), Rajasthan (3%), Karnataka (3%), Telangana (2%), Chhattisgarh (1%). The target customers of the company include lower and middle income class families, self-employed, cash salaried category where formal income proofs and credit reports are not easily available, and the repayment capacity of such families are appraised based on their cash flows and internal score cards. The pricing of each loan is linked to the credit score and credit assessment report. This methodology enables MOHFL to price risk correctly by offering finer interest rates to deserving families, where credit risk is low and charge a higher rate of interest where credit risk is high. The credit score parameters, risk weightage, customer segmentation, collateral technical policy and rate of interest bands are reviewed timely, modified in lines with the changing risk profile of the customers and aligned with the prevailing market rates respectively. Registered Address The registered office of the company is located at Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai. Symbol: Motilal Oswal Home Finance Ltd. Face Value (₹): 1 ISIN: INE658R01011 Demat Status: NSDL & CDSL Lot Size: 1000 Shares Board of Directors Mr. Molal Oswal – Chairman & Non-Execuve Director Mr. Raamdeo Agarawal – Non-Execuve Director Mr. Navin Agarwal – Non-Execuve Director Mr. Sanjaya Kulkarni – Independent Director Mrs. Rekha Shah – Independent Director Key Business Highlights Motilal Oswal Housing Finance Ltd ranks amongst stable companies in the housing finance segment. MOHFL has lowest NPAs in the industry with Gross NPA of 2.2% and Net NPA of 1.52% (FY 2021) and rated AA- (stable outlook) by CRISIL. Backed by reputed parent Motilal Oswal Group. Financial Highlights Particulars 2020-21 2019-20 2018-19 2017-18 Total Income (₹ Crores) 545.52 576.44 648.41 670.75 PAT (₹ Crores) 40.23 39.08 -136.88 19.21 Diluted EPS 0.07 0.06 -0.25 0.04 Book Value per Share (₹) 1.51 1.44 1.38 1.46 Equity (₹ Crores) 909.54 867.39 826.61 760.67 Media Updates “Bonus Share Issue Propose in June 2021” The Board of Directors, at its meeting held on 14th June, 2021 has recommended for issuance of bonus shares in the proportion of 1:2 [i.e.1 (One) new fully paid up equity share for every 2 (Two) existing equity shares held].