Despite a ~45% run-up in the last six months, DHFL trades at 2.1x FY19E ABV, much cheaper than peers. Initiate coverage with a BUY. Our TP is Rs 685/sh (2.25x Sept-19E ABV). Dewan Housing (DHFL) is the fourth-largest housing finance company in the country, with an AUM of Rs 941bn as on 2QFY18. It provides home loans mainly in the peripheries of metros and Tier II/Tier III cities, targetting both the salaried and self-employed sections. Low up-country mortgage penetration, governments impetus for Housing for All and incentives for affordable housing bode well for the company.