Home First Finance is a good stock to buy: Saurabh Mukherjea

Discussion in 'Portfolios Of Famous Investors' started by Vidhi Khanna, May 31, 2022.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    Saurabh Mukherjea explained the reasons for adding Home First Finance to the portfolio. He explained that there has been a spectacular increase in terms of formal sector job additions. About 30-35 million jobs were created in the formal sector which has not been seen it in any country, let alone in India.He pointed out that 30 million jobs is the entire French labour force; that is the entire British labour force.

    The natural flowthrough of that will be mortgages, home loans etc. It is a visceral human desire to have a roof over your head. There is a big story around formal job creation. This is the formalisation of the country and it is showing up in job numbers, he added.

    He also stated that Home First Finance caters to customers who are not serviced by Banks at the Rs 10 lakh end of the home loan market. Non salaried class such as the gol gappa seller are serviced by Awas while salaried class like a sweeper working for a state government earning say Rs 3 lakh a year will get a loan from Home First. The space is very vibrant with lots of growth prospects and both Awas and Home First have clean accounts, good corporate governance, have shown strong ability to deal with the loan losses through Covid, well capitalised balance sheets and hence the Marcellus load up on both of these names, he said. (ET)
     
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