Business Details
Akme Star Housing Finance is NHB registered housing finance Company. It has registered office in Rajasthan. The Company provides housing loans to EWS (Economically Weaker Section)/LIG (Low Income Group)/MIG (Middle Income Group) households.
It is purely in business of housing loan providing loans for home extension, new purchase and improvement loans. As of now the Company has branches in Pune, Chennai, Akola and Indore.
It is Micro cap company. The main customer base is retail customers.
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Stock Performance
It is new listing on stock exchanges. Post listing the stock has performed decently on exchanges. Even after current correction the stock has given close to 3 times return in short span of time. It claims to make profit but no dividend is distributed by the stock.
This no dividend can be termed negative for investors.
My Opinion
The Company is small micro cap company is business of retail housing loan. It does give variety of loans but all are related to housing activities like improvement or construction of the house.
The Company is new one and have presence in four cities of India. The choice of cities are strange as they are located far from each other and in different parts of country.
Mainly a Company tries to focus on one Geography then move to next one. This Company has different approach compared to other companies. Personally I would recommend investing in top companies or big ones if you are investing in Financial sector.
The reason is clear. One bad loan or series of loans in this case will impact balance sheet of Company and it will find difficult to get on with it. So it is better to invest in companies which have deep pockets.