GIC Housing Finance Limited

Financial Services — Mortgage Finance · NSE

₹131.94+₹1.08 (+0.83%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of GIC Housing Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GIC Housing Finance Limited provides housing finance services for salaried and self-employed individuals in India.

IndustryMortgage Finance

SectorFinancial Services

Employees515

Annual revenue₹1,052 Cr

How does it make money?

Turns over ₹1,052 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 515 employees supports ₹2.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -3% while net margin moved -25% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-3%

Margin effect-25%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.0% a year
✗ Profit has declined at 10.1% a year

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

4.5x

3Y Median

5.8x

40 monthly readings · mean 5.8x · range 4.4x–8.5x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 3y median of 5.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 73% below the peer median of 17.0x.

vs. its own history

Cheap

5.8x median over 40 months · -22%

vs. sector peers

Cheap

17.0x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

42.7x

PEG

0.13

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 12.5% to 7.3% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 108% against revenue growth of -3% — customers are taking longer to pay.
Short-term liquidity is tight
Current ratio of 0.22 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.5 points, from 27.3% to 21.8%.
🟡Profit is decliningFinancial
Net profit is down 27% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 22% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 27.3% to 21.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 12.5% to 7.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 21.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 7.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 5.8x✓ 4.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 1 neutral · 4 weak

Market Cap

₹711 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.5x

Cheap

Cheap against the generic band

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹29.24

Profitable

Profitable on a per-share basis

ROE

7.3%

Weak

Weak capital efficiency

ROCE

2.1%

Weak

Low return on total capital employed

Debt/Equity

4.33x

High

High leverage

Revenue Growth (YoY)

386.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

35.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.41%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹325 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

3.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

28.6%

Good

Healthy core-business profitability

Net Margin

43.6%

Good

Strong bottom-line conversion

Current Ratio

0.22

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

134.5 / 138.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,085 Cr	₹1,031 Cr	₹1,037 Cr	₹1,052 Cr	-1.0%
EBITDA	₹296 Cr	₹221 Cr	₹221 Cr	₹229 Cr	-8.1%
EBITDA Margin	27.3%	21.4%	21.3%	21.8%	—
PAT (Net Profit)	₹213 Cr	₹151 Cr	₹160 Cr	₹155 Cr	-10.1%
EPS	₹39.6	₹28.11	₹29.79	₹28.75	-10.1%
ROE	12.5%	8.3%	8.2%	7.3%	—
ROCE	4.0%	2.8%	2.7%	2.1%	—
Total Debt	₹9,168 Cr	₹8,584 Cr	₹8,751 Cr	₹9,119 Cr	-0.2%
Free Cash Flow	₹1,037 Cr	₹518 Cr	-₹20 Cr	-₹325 Cr	—

🟡 Revenue has been broadly flat over 3 years (-1.0% a year).

🔴 EBITDA has shrunk at 8.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 27.3% to 21.8% over 3 years (-5.5 pts).

🔴 PAT (Net Profit) has shrunk at 10.1% a year over 3 years.

🔴 EPS has shrunk at 10.1% a year over 3 years.

🔴 ROE has fallen from 12.5% to 7.3% over 3 years (-5.2 pts).

🔴 ROCE has fallen from 4.0% to 2.1% over 3 years (-1.9 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.2% a year).

🔴 Free Cash Flow has turned negative, from ₹1,037 Cr to -₹325 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11,299 Cr

Total Liabilities

₹9,193 Cr

Cash & Equivalents

₹40 Cr

Operating Cash Flow

-₹320 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

45.9%

Insider Holding

5.9%

Corporate Actions

Dividend Rate

₹4.5

Ex-Dividend Date

25 Jun 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive3 mixed1 negative1 general

GIC Housing Finance Share Price Target 2026: Expert Forecast, Growth Catalysts and Key Risks

Univest, 08 MayAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

GIC Housing Finance Reports Q1 Standalone Net Profit Of 100M Rupees Vs 73.5M YoY

Sahi, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

GIC Housing Finance redeems ₹300 cr NCDs, pays ₹24.84 cr interest

scanx.trade, 21 Aug

GIC Housing Finance consolidated net profit rises 35.85% in the June 2026 quarter

Business Standard, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

RBI slaps Bank of Baroda, GIC Housing Finance with ₹66.7 lakh penalty for non-compliance — Here's all you need to know

Livemint, 03 JulRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Why Is GIC Housing Finance Share Price Falling Key Reasons 2026

Univest, 06 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑