Piramal Capital & Housing Finance Ltd (PCHFL) is a housing finance company formed in February 2017. The company is a wholly owned subsidiary of Piramal Finance Limited and is the flagship entity of the Piramal group’s financial services business.
Credit Rating- Piramal Capital & Housing Finance Ltd has been rated as AA by both CARE & ICRA.
Parameters(Rs billion) | FY21 | FY20 |
Total Income | 50.88 | 56.22 |
PAT | 10.34 | 0.3 |
Total Equity | 214.87 | 204.51 |
Leverage | 1.39 | |
Debt service coverage | 0.15 | |
Interest service coverage | 1.52 | |
Net NPA | - | 1.37% |
Date | ISIN No | Coupon (%) | Maturity Date | Yield (%) | Price |
12-May-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.40 | 101.25 |
11-May-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.36 | 101.29 |
10-May-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.05 | 101.55 |
07-May-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.24 | 101.36 |
06-May-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.38 | 101.29 |
05-May-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.39 | 101.27 |
04-May-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.40 | 101.28 |
04-May-21 | INE516Y07089 | 9.50 | 21-Apr-22 | 8.25 | 101.43 |
30-Apr-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.35 | 101.33 |
29-Apr-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.17 | 101.49 |
28-Apr-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.19 | 101.49 |
27-Apr-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.50 | 101.22 |
26-Apr-21 | INE516Y07105 | 9.50 | 15-Apr-22 | 8.45 | 101.26 |
12-Apr-21 | INE516Y07089 | 9.50 | 21-Apr-22 | 8.60 | 101.2 |
Strong Parentage Support- PCHFL is a wholly owned subsidiary of PEL that is a part of the Ajay Piramal group of companies. As a result, PCHFL gets benefits in the form of brand name, capital infusion, managerial and operational support. PCHFL also benefits from the real estate expertise of Piramal Group.
Adequate Capitalization- PCHFL’s total equity rose to Rs 214.87 billion as of 31st March 2021 from Rs 204.51 billion as of 31st March 2020. As on September 30, 2020, PCHFL reported capital adequacy of 32.79% which is well above regulatory requirement with Tier I capital adequacy at 32.62%.
Diversified resource profile- As of 30th September 2020, the company has a diversified resource profile with PCHFL’s borrowing consisting of bank borrowings (56%), Non Convertible Debentures (23%), ICDs (9%), ECB’s (2%) and Securitization (7%).
Rise in profitability-During FY21, PCHFL reported a net profit of Rs 10.34 billion as compared to Rs 0.3 billion in FY20. The low profitability in FY20 was due to higher provisioning.
Higher concentration in real estate sector- PCHFL’s loan portfolio has high exposure to the real estate sector due to the focus of the Piramal Group’s financial services business. As of 30th September 2020, it constituted 78% of the overall loan book. In the current scenario of lockdown due to covid crisis, it is likely to put adverse impact to on the company going ahead.