GIC – Concept

Overview[edit]

The rate of return on a GIC varies depending on the various factors, such as the length of the term and

specified interest rates from the Bank of Canada. At the time of purchase, the rate is higher than the interest

on a savings account. The return on the investment will be low, if the savings interest rate becomes higher

than the GIC rate of return, and will be high otherwise.[3]

The principal amount is not at risk, unless the bank defaults. The guarantee for GICs is provided by

the Canada Deposit Insurance Corporation[4] (CDIC) up to a maximum of $100,000 (principal and interest

combined), as long as the issuing financial institution is a CDIC member,[5] and the original term to maturity is

five years or less.[6]

Market Growth GICs[edit]

The Market Growth GICs or Market Stock-Indexed GICs have their interest rates determined by the rate of

growth of a specific stock market (such as the TSX or S&P 500). For example; if the TSX has a market growth

increase of 30% in 3 years, beginning at the same point in time the GIC was issued, the GIC will return with an

interest of 30%. However, unlike other GICs there is always a possibility that the market could perform

poorly, having even no growth at all, in which the interest rate could return at 0%. Just like regular GICs,

Market Growth GICs are extremely low-risk; the capital is guaranteed to remain intact (though

the purchasing power is not), even if the stock market shrinks.

All Market Growth GICs have a maximum return. For example; if the GIC has a maximum return of 25% over 3

years, and the TSX has a market growth increase of 30% in 3 years, the GIC will return with an interest rate of

only 25%. Maximum returns will typically range from 7% to 15% per year, depending on the market in which

the GIC is invested and the length of the investment term.

GIC- Statistical Data

GIC Housing Finance Ltd

BSE: 511676 | NSE: GICHSGFIN | ISIN: INE289B01019 Market Cap: [Rs.Cr.] 705 | Face Value: [Rs.] 10Industry: Finance - Housing

 Discuss this stock

142.0011.10 (8.5%)

142.2011.05 (8.4%)

BSE May 19,13:04

Day's High | Low 142.50 | 133.00

Day's Volumes 244,619

52Wk High | Low 142.50 | 78.55

Open Price 133.00

Turnover 43,484,615.00

Deliverable Vol. 145,989

6 Mth. Avg. Vol. 54,568.97

NSE May 19,12:55

Day's High | Low 142.70 | 133.00

Day's Volumes 757,588

52Wk High | Low 142.70 | 78.10

Open Price 133.90

Turnover 135,163,040.05

Deliverable Vol. 636,335

6 Mth. Avg. Vol. 209,939.79

May 19,2014 Open LTP Day's Range Volume

  133.90 142.20 142.70 - 133.00 757,588

Graph: Today | 1w | 1m | 3m | 6m | 1y | 3y Technical Charting

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Key ratios  Mar-13 Mar-12 Mar-11

P/E (x) 7.04 8.66 5.08

P/BV (x) 1.03 0.96 1.19

RONW (%) 16.2 12.3 26.7

ROCE (%) 10.9 9.9 10.8

EV/ EVBIDTA (x) 9.06 9.60 9.53

Dividend Yield (%) 3.8 3.8 3.8

APATM(%) 15.4 13.4 26.6

EPS 14.9 10.2 20.2

View all key ratios

Shareholding Pattern

Particulars No. of Shares(Mn)

% Holding

s

Total Promoter Holdings 22.25 41.3

NSE

Total Govt Holding (Promoter + Non Promoter) 0.00 0.0

Total Domestic Institutions (Banks/ FI + MF / UTI) 2.77 5.2

Total Foreign Holdings (FII+NRI holdings) 2.90 5.4

Total Non Promoter Corporate Holdings 5.27 9.8

Total Public & Others (Individuals + HUF + Clearing members) 20.66 38.4

Total 53.85 100

View detailed shareholding pattern

India Infoline Research Company | Sectors

 

No Related Research Found

Related News Company | Sector | Latest

 

07-May-14 GIC Housing Finance prepones board meeting

07-May-14 GIC Housing Finance net profit rises 49.55% in the March 2014 quarter

17-Apr-14 GIC Housing Finance to hold board meeting

28-Mar-14 GIC Housing Finance shifts registered office address

29-Jan-14 GIC Housing Finance drops after muted growth in Q3 earnings

28-Jan-14 GIC Housing Finance net profit rises 1.85% in the December 2013

quarter

More News 

Peer Comparison

Company Market Cap(Rs. in Cr.)

P/E (TTM)(x)

P/BV (TTM)

(x)

EV/EBIDTA(x)

ROE(%)

ROCE(%)

D/E(x)

H D F C 138,189.74 25.40 4.94 13.70 22.0 11.8 6.77

LIC Housing Fin. 15,666.86 11.89 2.08 10.69 16.8 10.6 10.26

GRUH Finance 6,105.55 36.45 10.05 13.77 32.2 12.5 10.34

Dewan Housing 3,811.13 7.20 1.07 8.72 17.2 13.1 9.71

Repco Home Fin 2,484.54 22.57 3.35 0.00 17.1 11.4 5.92

GIC Housing Fin 704.90 7.22 1.15 9.06 16.2 10.9 7.22

Can Fin Homes 487.97 6.43 1.08 10.61 14.6 10.8 7.89

India Home 54.10 89.91 4.80 148.49 2.9 3.7 0.04

SRG Housing 40.40 63.29 3.23 15.72 7.4 10.6 0.62

Sahara Housing 33.15 14.05 1.13 9.77 7.1 9.4 4.85

Coral India Fin. 25.95 2.98 0.45 0.65 30.4 36.6 0.00

SBI Home Finance 23.03 0.00 -0.07 0.00 0.0 0.0 0.00

Intl. Housg.Fin. 12.54 0.00 0.71 0.00 0.0 0.0 0.00

Manraj Hsg.Fin. 8.00 12.90 0.89 7.84 8.0 13.6 0.63

Ind Bank Housing 4.01 0.00 0.25 0.00 0.0 0.0 0.00

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