HFFC has a 'buy' recommendation with a price target of Rs 1,150, while Aavas has a 'buy' recommendation with a price target of Rs 1,775.
The company expects HFFC to have upside potential of 30.5 per cent from Friday's closing price of Rs 881.10, while for Aavas it expects upside potential of 14 per cent from its current price of Rs 1,545.
Aavas Financiers, which is also scheduled to report quarterly results later this week, reported a 13% gain over the past month. However, it has been reported to have decreased by 12% in the past year. Meanwhile, HFFC is up 23% in the last year and 4% in the last month.
Despite the backdrop that the Indian housing market faces a significant shortage of affordable housing options, the outlook for affordable housing finance companies (AHFCs) remains positive, according to a report by Nirmal Bhan That's what it means.
With its geographically diversified portfolio, deep distribution focus, niche customer segments and fine-grained underwriting model, AHFC is believed to be best positioned to make the most of this opportunity, the brokerage said. Stated. „Factors such as increasing urbanization, rising per capita income and government are at play.“ „We see significant growth opportunities due to initiatives and low mortgage penetration,“ the brokerage added. However, the report notes concerns that the sector faces similar challenges, including increased competition and short-term mortgage compression. Increased spreads and operating expenses. Additionally, AHFC has experienced downgrades due to oversupply, particularly due to share sales by private equity funds.
India's housing shortage and low home loan penetration highlight the pressing need for affordable housing solutions, presenting an attractive growth opportunity for AHFC. As these companies overcome challenges and take advantage of favorable market dynamics, investors may see potential in the promising future of India's affordable housing finance sector.
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