Better placed than many in NBFC space? 6 housing finance stocks with upside potential of up to 32%

Synopsis

The recent RBI guidelines on tightening the normal for provision for unsecured lending, bring back the debate to whether from a long term perspective, it is better to own a good housing finance stocks as it largely secured portfolio or should be stick to unsecured lenders who have faster growth rate. Despite all the ills of the real estate and housing finance business, one of the biggest wealth creators in the history of the Indian stock market has been a housing finance company, erstwhile HDFC which now merged with HDFC bank. So, it is a business which is good to own but what you choose to own matters most.

Housing finance as an industry had its fair share of controversies. If one looks at the root cause of the NBFC crisis, it is clear, it was housing finance companies which were at the centre of the crisis. If one looks globally also, either directly or indirectly, they have been at the root of a financial crisis or a scam. One of the reasons why this sector carries such risk is that the underlying asset, which is real estate itself, is both
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