DHFL Overview
Dewan Housing Finance Limited is one of the leading Private Sector Housing Finance company in India. It is majorly a housing finance company but also has ventured into other spaces as well. It also provides non housing loans as well.
You may have seen commercials of DHFL on televisions as well. As of now Shahrukh Khan is brand ambassador of DHFL and does the commercials. In case you have applied for Home Loan or thought of buying a flat then you may have came across this company offering Home Loans at good rate.
DHFL has good presence and branch coverage is also good. Most of the projects have Loan tie up with Dewan Housing Finance Limited. This is one excellent point working for DHFL. I have seen many projects which have tie up with DHFL.
This eliminates the hassle customer has to face and increases business for the company. It is win win situation for Real Estate Construction company , DHFL and Customer. Now lets see how this company has performed over the years on Stock exchanges.
DHFL Share Price
Housing Finance sector was once a hot cake in Indian market. People and Analyst were very bullish on this sector. HDFC was the crown jewel of this sector. Let us see how well DHFL has performed over the years and whether the company was able to reap benefits for the investors.
If you see above in year 2002 the share price was around 7. After recent fall also share price is around 300. So the stock has moved 40 times from the year 2002 till this date. That is in 16 years the stock has given more than 40 times return taking into consideration the recent falls.
So this stock is a multi bagger in its right. The dividend yield of the stock is close to 2%. So if you take that too into account investors have made good money from this stock in past.The current 52 week high is close to 700. The share is trading near 52 week low now due to recent mayhem in Housing Finance sector or in general NBFC sector.
DHFL My opinion
As mentioned above there are some very good companies in housing sector. Many analyst are bullish on this sector. The demand of housing will grow in India. There is no slowing down due to increasing population and Urbanization.
You might have seen new complexes coming up every where. Flats and housing societies are getting developed at great pace. People will buy flats and they will finance it as well. The companies which provide them hassle free loans and will have partnership with these Building developers will get benefited.
This may be the rationale Rakesh Jhunjhunwala has picked Housing Finance company DHFL for his portfolio. However this does not mean DHFL is only good company in this sector. There are many companies in this sector which you can select for your portfolio.
This sector does have potential to grow as shown by the share price graph of the company and will grow in future as well. The housing sector growth story of India is not yet finished.
Conclusion
There are many quality stocks present in Housing Finance sector. If you are interested to put money in this sector then you can add stocks from this sector to your stock watch list and analyze them in light to DHFL.
You can also see portfolio of other top investors and mutual funds to know other housing finance companies in their portfolio. That will give you starting point.
This comparison will help you understand about the sector and come up with company of your choice.