Motilal Oswal Home Finance is a home financing company of Motilal Oswal Group. The company primarily gives average loans of 8.5 lac to the borrowers. Till Fy20-21, 80% of the loan book has been disbursed in the state of MH and Gujarat. Out of that , 45% of the total loan is disbursed to Self employed and 55% loan to Salaried class. Total loan book as on 31.03.2021, stands at ~3500 Crores. NBFC and Covid-19 Crisis The company which was started few years back has been facing issues since 2019, first due to NBFC crisis and then Covid-19 in 2020. Last year, with the implementation of lockdown, disbursements were halted, collection moderated and asset quality started worsening. However, the second half of FY21 witnessed improved performance by industry players in terms of disbursement and collection and the industry was expected to fully recover and registered a healthy growth in FY22. Covid-19 Second Wave As economy was about to come back at the pre-COVID level, the second wave has made situation more grim than previously. The nation wide lockdown was not done, however, most of the states are under lockdown which has severely affected the livelihood of lower and middle income people. This will again put lot of pressure on companies such as Motilal Oswal Home Finance to increase sales and get loan's EMIs on time. Management Analysis of FY20-21  1. The culture of Work From Home, culture implemented by most of the corporates, there is need for bigger homes and also sense of owning house has increased resulting in demand for housing. Most of the states have also offered concession on stamp duty which has made housing more affordable. As result of these developments coupled with discounts offered by builders, there is record high home buying. 2. During the year Motilal Oswal Home Finance registered a robust PBT growth of 48% YoY and PAT growth of 73% YoY (excl. one me tax impact). 3. Disbursements remained muted for the first half of FY21, owing to lockdown, but Motilal Oswal Home Finance gradually picked up and disbursement stood at Rs.273 cr, which was up 42% YoY. 4. The loan book stood at ~ Rs.3,512 crores across 47,665 families as of March 2021. 5. Currently, Motial Oswal Home Finance has in-house collection team comprises of 500+ officers. They have strengthened legal unit to pursue legal cases aggressively such as SARFAESI, section 138 and arbitration cases. Business Performance of FY20-21 1. MOHFL has disbursed Rs. 273 crores during FY21. 2. Average loan size of Rs. 8.6 lakhs. 3. The average tenure of the loan given is 15 years with loan limit of Rs.25 lakhs 4. Geographical reach across 9 states with 104 branches. Collection team of 500+ members along with robust legal team Catering to 47,660+ families 5. Average LTV of 59% as on 31st March, 2021 and Total staff count of 1,316 employees. Financial Performance of FY20-21 1. Loan book stands at Rs.3,512 crores as on 31st March, 2021 2. Net Worth of r 910 crores as on 31st March, 2021 3. Profit stood at r 40 crores during FY21 4. NIM – 6.1%, Spread – 5.1% 5. GNPA – 2.2% and NNPA – 1.5% 6. Provision coverage – 92% 7. Net Debt to Equity – 2.8x 8. Cost to Income – 33% 9. Capital adequacy – 50% Valuation of Motilal Oswal Home Finance Currently, the share of Motilal Oswal Home Finance is available at Rs.14 per share in the unlisted market. The Book value as on 31.03.2021 is 1.65, so P/B is 8.48x ( looks highly overvalued).