One should be careful in assigning PB to HFC. Earlier in the past they used to trade at crazy P/B and growth was not supporting PB. Pls note that HFC have limited segments to lend Housing + Affordable housing. NIMs are in Aff hsg and this segment is today getting highly competitive with pvt/ psu Banks, NBFC, SFB focussing on this segment. Hence, I think PB to HFC should not be more than 2 if you want to invest for good near term returns. In high Interest regime, NIM’s are under pressure and earnings growth have not been great in june quarter as well for HFC’s.
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