Major action in housing finance stocks: Emkay bets on these 8 stocks—do you have them in your portfolio? – ..

Big news has come for investors looking to invest in the housing finance sector. Brokerage firm Emkay Global has released its new coverage report on Indian housing finance companies, in which it has expressed great confidence in the shares of these giant companies in view of sectoral growth and increasing demand. Emkay has included a total of 8 housing finance stocks in its coverage list and advised investors to buy.

‘BUY’ rating is confident on these 4 stocks

According to the Emkay Global report, leading companies in the housing finance sector show strong fundamentals and immense potential for growth going forward. The brokerage has given ‘BUY’ rating mainly on 4 stocks. There is a huge opportunity for long term investment in these stocks because the loan book of these companies is growing rapidly and the asset quality also remains excellent. Market experts believe that the increasing demand for homes in urban and semi-urban areas can prove to be a ‘game changer’ for these companies.

Hope remains intact with ‘ADD’ rating on 4 stocks

Apart from Buy rating, Emkay has ‘ADD’ rating on 4 other housing finance companies. This means that investors can gradually accumulate these shares in their portfolio. The brokerage believes that these companies may see improvement in margins and increase in valuations in the next few quarters. These companies are fully expected to benefit directly from the liquidity situation in the housing finance sector and the affordable housing scheme of the government.

What is the special opportunity for investors?

In the current times when the stock market is at new heights, the housing finance sector is emerging as a safe and growth-oriented option. Increasing disposable income and easy availability of home loans are making the business models of these companies even stronger. If you are also planning to invest for mid-term or long-term, then it is important to keep an eye on the valuation and future targets of these companies. However, before making any investment, understand the risk profile of the concerned sector and the financial health of the company.