InvestorQ : Why has Dewan Housing reported such a big loss? Is the stock worth holding on to now?
Moii Chavate made post

Why has Dewan Housing reported such a big loss? Is the stock worth holding on to now?

Answer
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Sam Eswaran answered.
1 year ago


Dewan Housing had delayed its March quarter results announcement and has just announced a loss of Rs.2223 crore in the March quarter. Even this loss is based on unaudited results and the audited results are expected only on the 22nd of July only. For the March quarter, DHFL posted loss of Rs.2223 crore due to higher provisioning to the tune of RS.3280 crore in the March quarter. This results in a full fiscal loss of Rs.1036 crore for 2018-19. But again, this is unaudited results and we are still awaiting the audited financial results.

The worrying sign is that the gross NPAs have gone up sharply from 0.96% to 2.74% and the markets are not too sure if this is reflective of the real picture. You will get greater clarity only after the Inter Creditor Agreement (ICA) is finalized with the lenders. As of now the company has been consistently defaulting on its interest and principal obligations. The stock has corrected nearly 90% from its peak levels and it is better to exit the stock and take whatever you can retrieve.