Aavas Financiers stock has doubled in less than a year, what should investors do?
August 16, 2019 / 11:21 AM IST
Five Star raised $234 million from Sequoia Capital and private equity giant KKR
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Housing finance companies (HFCs) are going through tumultuous times following the liquidity crisis that engulfed the non-bank financial company sector since September 2018. While higher interest rates were anticipated in FY19, HFCs were caught completely off-guard when liquidity shrank after the defaults by IL&FS group companies.
Stock prices nosedived, and investors shunned HFC stocks. However, the challenging environment turned out to be a good litmus test of overall quality for HFCs and helped in separating the wheat from the chaff. A...