 "Housing finance stocks hit record high")
Shares of housing finance companies are in demand and trading at the record high on the bourses in otherwise subdued market.
Stocks of Dewan Housing Finance (4% at Rs 434), Can Fin Homes (up 3.4% at Rs 576), LIC Housing Finance (1.5% at Rs 474), Gruh Finance (1.1% at Rs 301) and GIC Housing Finance (1% at Rs 237) are trading higher between 1-4%; hit their respective record highs during intra-day trade on BSE.
The S&P BSE Sensex was down 0.19% or 54 points at 27,828 at 1431 hours.
HDFC, which down nearly 2% at Rs 1,152, also touched a lifetime high of Rs 1,179 in early morning trade on BSE.
Shares of LIC Housing Finance hit a record high of Rs 480 in intra-day trade on BSE. In past one week, the stock rallied 15% from Rs 419 as compared to 1.5% rise in the benchmark index.
Analyst at Prabhudas Lilladher upgrades ‘Buy’ rating on the stock with target price of Rs 490.
Management has guided for an individual loan growth of 20-25% over next year while steep decline in funding cost is likely to aid spreads further on, said analyst in a report dated January 2, 2015.
Funding environment has been benign in fast few months with wholesale rates softening which will be positive for LIC Housing Finance spreads and robust sanctions done in Q2FY15 on builder book could add to spread improvement, he adds.
Stocks of Dewan Housing Finance (4% at Rs 434), Can Fin Homes (up 3.4% at Rs 576), LIC Housing Finance (1.5% at Rs 474), Gruh Finance (1.1% at Rs 301) and GIC Housing Finance (1% at Rs 237) are trading higher between 1-4%; hit their respective record highs during intra-day trade on BSE.
The S&P BSE Sensex was down 0.19% or 54 points at 27,828 at 1431 hours.
HDFC, which down nearly 2% at Rs 1,152, also touched a lifetime high of Rs 1,179 in early morning trade on BSE.
Shares of LIC Housing Finance hit a record high of Rs 480 in intra-day trade on BSE. In past one week, the stock rallied 15% from Rs 419 as compared to 1.5% rise in the benchmark index.
Analyst at Prabhudas Lilladher upgrades ‘Buy’ rating on the stock with target price of Rs 490.
Management has guided for an individual loan growth of 20-25% over next year while steep decline in funding cost is likely to aid spreads further on, said analyst in a report dated January 2, 2015.
Funding environment has been benign in fast few months with wholesale rates softening which will be positive for LIC Housing Finance spreads and robust sanctions done in Q2FY15 on builder book could add to spread improvement, he adds.