After giving away a massive 60% of its market price, the Dewan Housing Finance Corporation Limited (DHFL) share has managed to reverse losses by restoring investors' faith. Guess what! This is one of Dalal Street king, Rakesh Jhunjhunwala’s favorite stocks, and with today’s gain it looks like it is coming back on tracks. On BSE, the DHFL stock has touched an intraday high of Rs 438.75 per piece which has resulted in overall 25% gains in few hours of opening in today’s trading session. However, at around 10:54 hours, the stock was trading at Rs 401.70 per piece above Rs 50.15 or 14.17%. 

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In a notification today, DHFL reiterated that the company has neither defaulted on any bonds or repayment of its financial obligations, nor has there been any instance of delay on any repayment of any liability. 

On September 21, 2018, DHFL fulfilled its commitment of repaying commercial papers worth Rs 575 crore and as per schedule and terms, is repaying Rs 400 crore on September 24,2018.

The company has also received re-affirmation of credit ratings from CARE and ICRA. 

The credit rating for DHFL's short and long term borrowings including Fixed Deposits has been reaffirmed as CAREAAA {Outlook: Stable} and CAREAAA {FD}; Stable {Triple AAA, Outlook: Stable} and ICRAA1+, indicating a very strong degree of safety regarding timely payment of the Company's financial obligations.

Kapil Wadhawan, Chairman and Managing Director, DHFLsaid, "The reiteration by CARE and ICRA on the high degree of safety of DHFL's bonds and the organisation's total commitment to its financial obligations, come at a very critical time.”

Last week on Friday, DHFL’s market price more than halved from its previous market price, and clocked a new low of Rs 246.25 per piece. This would be a drop of nearly 60% on BSE. Earlier in the day, the stock price stood at Rs 610.60 per piece! 

However, by end of Friday’s session, Dewan managed to recover a few of its losses, and ended at Rs 351.55 per piece on BSE below Rs 259.05 per piece or 42.43%. 

The reason behind DHFL’s tumble was due to default rumours in regards to bonds and even exposure with IL&FS which is currently in need of urgent financial aid. 

However, shrugging off uncertainties, aligned to a high growth outlook, DHFL has ensured that the Company's business fundamentals are strong. 

Coming to Rakesh Jhunjhunwala, he owns about 2.76% in DHFL which comes to 8,665,264 equity shares. 

What is interesting is that according to Trendlyne.com, the shares Jhunjhunwala held in DHFL were worth Rs 331.45 crore, and after the decline the website shows that now they are worth Rs 292.02 crore. This surely means that Jhunjhunwala must have faced the heat of the negative stock price. 

Earlier the ace investor held about 3.19% in DHFL, but he decided to lessen that holding by 0.43% between April to June 2018 period.