Introduction
The housing finance industry has a bright future in India due to increasing urbanisation, government encouragement, and the requirement for low-cost and luxury residential properties. The need for fulfilment in this regard is supported by the HFCs (Housing Finance Companies), whose primary goals are credit provision and shelter.
From the analysis, some of the players in the sector appear to have reported good performance in 2024. Below, we explore the best housing finance stocks in India.
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Best housing finance stocks in India
The top housing finance stocks in India are selected based on the market capitalization. High market capitalization stocks are stocks of companies that are well-rooted and financially sound with market dominance. Normally they are expanding gradually with very good quality of assets and are creating good value for the shareholders.
The criterion for the selection of small high-risk firms is market capitalization and investors can skip firms within an industry and directly go to the leaders of the industry. The balance comes in investing in the volatile housing finance sector with this approach; it gives constant returns and little risk in the sector.
NOTE: All the stocks have been selected as per the market capitalization, as of November 14, 2024. The table below shows the financial performance for the half-year period ending September 30, 2024.
| Company | Market Cap | Revenue | PAT | 52 Week High | 52 Week Low |
| Bajaj Housing Finance Ltd | ₹ 1,07,891 Cr. | ₹ 2410 Cr. | ₹ 546 Cr. | ₹ 188 | ₹ 128 |
| HUDCO | ₹ 40,364 Cr. | ₹ 2518 Cr. | ₹ 689 Cr. | ₹ 354 | ₹ 80.2 |
| LIC Housing Finance Ltd | ₹ 33,532 Cr. | ₹ 6938 Cr. | ₹ 1328 Cr. | ₹ 827 | ₹ 452 |
| PNB Housing Finance Ltd | ₹ 23,509 Cr. | ₹ 1868 Cr. | ₹ 472 Cr. | ₹ 1,202 | ₹ 600 |
| Aadhar Hsg. Fin | ₹ 18,687 Cr. | ₹ 750.82 Cr. | ₹ 227.56 Cr. | ₹ 517 | ₹ 292 |
1. Bajaj Housing Finance Ltd
Bajaj Housing Finance provides different housing finance solutions to fulfil multiple housing needs. BHFL offers home loans, loans against property and construction loans, etc. The people in employment, business people, and others get fair charges and payment in a convenient mode from the company. Fast, smooth workflow, fast approvals, and passion for clarity are what BHFL is proud of, so its clients can get the keys to their new homes. These specialised services by BHFL in this context have helped people across India fulfil their dream of a house.
2. HUDCO
HUDCO is a government of India undertaking at the ministerial level functioning under the Ministry of Housing and Urban Affairs. It is an organisation that has the social role of stimulating economic development by satisfying the major housing deficits in society. It also operates a financing role for infrastructural projects in urban areas and the formation of new towns and is also a consultant.
3. LIC Housing Finance Ltd
Incorporated in 1989, LIC Housing Finance is a premier finance lending company for housing in India. It offers long-term funds for the purchase, or repair of homes. The customers of LIC Housing Finance are offered affordable and flexible repayment schedules to meet their needs with competitive interest rates. As the company has branches all over India it is easy and convenient for the customers. LIC HFL is known for being a name of trust and reliability and has a major role to play in fulfilling affordable housing needs and owner-occupied housing for millions.
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4. PNB Housing Finance Ltd
PNB Housing Finance provides various home loan solutions to its customers. It provides financing to buy, build, or renovate a home. The company is known to offer attractive interest rates and flexible tenure options. Also, it serves both salaried as well as self-employed people. The company is customer convenience-focused and strives to provide quick approval and a quick loan process. An important enabler of homeownership for the common man in India is PNB Housing Finance.
5. Aadhar Housing Finance
Aadhar was launched in 2010 and became a part of DHFL Vysya in 2017, and Aadhar is currently working in 20 states with more than 266000 customers through 534 plus branches. BCP TOPCO VII PTE is the funding partner of Aadhar. Ready to lend finance to earners of ₹5,000 and above monthly up to ₹50,000, LTD (Blackstone Group ) is ready.
Aadhar is friendly in its operations and intends to make homes affordable for shopkeepers, workers, and low-income self-employed people across the country. Aadhar is a loan book of over 100 crore rupees that aims to achieve financial inclusion through ethical, simple, and speedy housing finance solutions. Aadhar is helping the low-income sections of society and is helping in constructing a new India where everyone has an opportunity to have a house of his own.
Conclusion
India’s housing finance sector is going to benefit from positive sentiment as there is a higher demand for housing in India in subsequent years.
These above-mentioned companies have already made their space in this new market. But this blog is not intended to be used by the reader to make investment decisions, it is an informational guide. Therefore, any decision on the best housing finance stocks in India should be made by personal research or a Financial Advisor.
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FAQS
- Which housing finance stock is best in India?
The housing finance industry in India is growing rapidly because of increasing urbanisation and government measures. Sector leaders by market capitalization and financial performance and having a strong presence in the market include Bajaj Housing Finance, HUDCO, LIC Housing Finance, PNB Housing Finance, Aadhar Housing Finance, and others. These firms provide various types of housing loans appropriate to the different working classes, at reasonable rates and with good customer relations.
- What is the future of housing finance companies in India?
The affordability of houses along with government incentives like the PMAY (Pradhan Mantri Awas Yojana) make a bright future for housing finance companies in India. Improvements in disposable income and some tax benefits on home loans have increased the demand for it. However, these companies may encounter some problems such as shifts in the regulatory framework and more competition from the banks and NBFCs. Therefore these firms will be strong bases for long-term growth of these firms.
- Who is the largest housing finance company in India?
Bajaj Housing Finance is the largest housing finance company in India till November 2024 as per market capitalization. It offers products like home loans, loans against property, construction finance, etc., that are comparatively cheaper in terms of interest rates and have less time for processing. The market capitalization of Bajaj Housing Finance reached ₹ 1,07,974 crore after the launch of its IPO in September 2024, becoming a market leader.
- Is it safe to invest in LIC Housing Finance?
LIC Housing Finance is considered a safe investment option due to:
- Analyst recommendations
Analysts recommend LIC Housing Finance due to its strong moats in retail mortgages and liability.
- Credit rating
LIC Housing Finance has an AAA/Stable credit rating from CRISIL, indicating timely repayment of interest and principal.
- Deposit scheme
Sanchay Deposit scheme is rated AAA/Stable by CRISIL, the highest for deposit.
- Stock performance
LIC Housing Finance’s stock has been performing better in the market than its moving averages.
- Can I buy Bajaj Housing Finance stock?
Bajaj Housing Finance Stock can be bought. Bajaj Housing Finance shares are available for purchase in major stock exchanges in India. As of November ‘14, Bajaj Housing Finance leads in market cap at ₹1,07,891 Cr. The revenue stood at ₹7,617Cr and PAT at ₹ 1731.22 Cr as of Q2FY24. However, size alone doesn’t define potential. Factors like earnings and profitability are important but not definitive. Each company has unique pros and cons. The right pick aligns with your timeline, risk appetite, and priorities.
