Housing finance stocks just got a major push. On July 10, shares of companies like HomeFirst, Aptus, and Aadhar Housing rose as much as 5%. The reason? Global brokerage Bernstein has just initiated coverage on these firms—and it’s bullish.
Bernstein gave an ‘Outperform’ rating to three out of four stocks in the space. It sees strong structural growth and solid business models as key reasons to stay optimistic.
Let’s break it down.
HomeFirst Finance: Fast and Flexible
Up 5.4%, HomeFirst got a thumbs-up from Bernstein with a target price of ₹1,650 per share. That’s a 22% upside from its last close.
Why the love?
Bernstein sees HomeFirst as a smart operator. Its small size lets it scale quickly. Plus, it can repeat its model in many states. That means faster growth and better profits.
Aptus Value Housing: Well-Positioned for Lower Rates
Aptus stock rose 2%, with Bernstein setting a target of ₹400 per share—about 17% upside.
The brokerage liked its fixed-rate loan structure and its focus on small business borrowers. In a falling interest rate scene, Aptus could shine. Also, the stock isn’t too expensive, which is another plus.
Aadhar Housing Finance: Big, Diverse, and Steady
Aadhar saw a 1% bump, with Bernstein putting its target at ₹550, a 22.5% upside.
It’s the biggest and most geographically spread out among peers. Bernstein thinks Aadhar can grow its Assets Under Management (AUM) by around 20% per year. That’s strong and steady.
Aavas Financiers: The Only Cautious Call
Not all names made the cut. Bernstein gave Aavas Financiers a ‘Market Perform’ tag. Its target is ₹2,070, just a 5% upside from current levels.
The report pointed out slower growth, weak returns, and some not-so-great results from expansion plans. Still, a short-term bounce could happen.
Why It Matters
The housing finance sector is getting noticed again. With India’s push for affordable housing and growing credit needs, these companies are in the spotlight.
Bernstein’s call reflects confidence in the long-term story. The focus is clear: growth, flexibility, and smart execution.
And today, the market listened.
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
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