Top Housing Finance Stocks Recommended by Bernstein for Potential Growth

Brokerage firm Bernstein has initiated coverage on four housing finance companies - Home First Finance, Aptus Value Housing Finance, Aadhar Housing Finance and Aavas Financiers. Home First Finance has an 'outperform' recommendation with a price target of ₹1,650, implying a potential upside of 21%. Aptus Value's price target of ₹400 implies a potential upside of 17%. Aadhar Housing Finance shares are expected to gain 22.5% based on its price target of ₹550. Aavas Financier's price target of ₹2,070 does not imply significant upside.

Bernstein's bullish call on Home First Finance is driven by its ability to replicate its operating model across states, smaller size, faster growth, and superior productivity metrics. Aptus Housing has reasonable valuations and is well-positioned in a falling interest rate environment. Aadhar Housing is seen as a good player in the field with steady growth prospects. Aavas Financiers may see a near-term rebound, but long-term outlook is cautious due to inconsistent outcomes from geographic expansion.

Shares of Home First Finance are trading 5% higher at ₹1,431, Aadhar Housing shares are up 2.3% at ₹460, Aavas Financiers shares have risen 4.3% in the last month, and Aptus and Home First shares have risen 3.5% and 7.3% respectively. However, Aadhar Housing shares have declined by 0.8% in the last month.

According to the source: CNBC TV18.