Af­ford­able Hous­ing Trends on D-Street Too

The Economic Times - - Front Page - Anandi.c@ times­group.com

Mum­bai: Shares of com­pa­nies as­so­ci­ated with the af­ford­able hous­ing sec­tor may get re-rated, and could at­tract greater in­ter­est from in­vestors af­ter the fi­nance min­is­ter ac­corded in­fra­struc­ture sta­tus to the sec­tor in the Union Bud­get. Com­pa­nies such as Ashi­ana Hous­ing, Pu­ra­vankara surged up to 19% af­ter the Bud­get an­nounce­ments on Wed­nes­day, while com­pa­nies like Gruh Fi­nance and DHFL, which pro­vide loans to af­ford­able hous­ing for the mid­dle and low in­come seg­ments, rose up to 8%.

“There is some scope for the re-rat­ing of the sec­tor,” said Dal­jeet Kohli, head of re­search at In­di­aNivesh Se­cu­ri­ties. “Post the PM’s speech in De­cem­ber, we have been pos­i­tive on Ashi­ana Hous­ing and have seen a build-up in the stock,” he said. In­di­aNivesh has set a tar­get price of ₹ 183 on the stock.

In­fra­struc­ture sta­tus could mean lower taxes, stamp duty, fewer per­mis­sions, rea­soned ex­perts. “There could be tax ben­e­fits for com­pa­nies in the af­ford­able hous­ing sec­tor and they would be able to raise funds at a lower cost,” said Navneet Munot, ED & CIO, SBI Mu­tual Fund.

How­ever, some an­a­lysts said they would prefer NBFCs to af­ford­able hous­ing con­struc­tion play­ers.

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