In his recent interview to ETNow, the “thoughtful investor” Basant Maheshwari kept his strong faith in Indian housing finance companies. According to him, housing finance companies are the heroes and new leaders of this ongoing bull market and the rally in these stocks will continue for the next 3 to 4 years. He is expecting that the peak of housing finance companies are still long away and we may see higher valuations from current levels. To affirm his strong conviction of this sector he predicted that at-least one housing finance company will trade at 5 digit in next three years.
If we look at the current stock price of housing finance companies listed below, many of them are trading at a range of Rs.1500 to Rs.500. So if we take his words into consideration, we can expect many 5 baggers in this sector by 2020.
No recommendations but in the 300 year market history the leader of one bull market NEVER leads again.For… https://t.co/gJUx8hJL29
— Basant Maheshwari (@BMTheEquityDesk) June 16, 2017
- Housing Development Finance Corporation Limited (HDFC)
- PNB Housing Finance Limited
- Dewan Housing Finance Corporation Limited (DHFL)
- GIC Housing Finance Limited
- Can Fin Homes Limited (CFHL)
- Repco Home Finance
Basant Maheshwari and his investment firm bet on the top 2 growth companies in this sector and he revealed that his firm has more than 25% allocation in housing finance sector. He advises Indian retailers to keep at-least 15 percent of portfolio allocation to housing finance companies in India ane be part of this bull market rally in this sector.
SECURED LENDING BUSINESS
Basant Maheshwari is super bullish on this sector because of few reasons. One of the reasons is the nature of lending in housing finance companies. The loan money is always secured which helps these companies from headwinds in their balance sheets. He believes that there will be strong push from policy side for more affordable houses and this trend is going to continue for the next couple of years.
SIMPLE ADVISE TO RETAILERS
With more than 20 years of market experience, he gives a simple and powerful advise to Indian retail investors. Market is good when market is down. Normally investors have the tendency to dump stock when market corrects and pump when market hits all time high. This investment behavior should change to earn wealth from market. We should study how to manage funds between bulls, bears, greed and fear. Apart from all these buzz words, long term investors should focus on one thing- CARG!!
Few important four letter words of investing – BULL, BEAR, RISK, GAIN, LOSS and the most important one – CAGR !#TheThoughtfulInvestor
— Basant Maheshwari (@BMTheEquityDesk) June 17, 2017
ABOUT BASANT MAHESHWARI
Basant Maheshwari is a well known indian investor and founder of Basant Maheshwari Wealth Advisers LLP. He has a history of identifying several multibaggers like Pantaloon Retail, TV18, Titan, Page Industries and Hawkins Cooker. He is also the founder of the popular online investment portal www.theequitydesk.com which is visited by thousands of visitors each month, both from India and abroad. His investments have been a 30% compounding at a rate of 30% over a long period of 2000 to till date.