Top 5 High Growth Stocks to Invest in 2022
A lot has happened in the housing finance industry in the last 6–9 months. The “Non-Banking Financial Company” crisis in India has brought to light the problems of the housing finance sector, particularly in terms of financing and low equity capitalisation.
Which are the finest high-growth stocks to invest in the housing finance sector? You should know the most recent outlook for the housing finance sector in India, and which companies can benefit from this and take up the market share to benefit investors in India in 2022?
First, let’s look at some statistics related to the Indian housing finance sector.
Statistics Related to the Indian Housing Finance Sector
- At the end of FY-21, India’s outstanding home loans amounted to a huge 22.4 lakh crore, 12.1% more than they were worth in FY-20. In addition, between FY-17 and FY-21, the Indian home loan market grew at a 32% CAGR.
- Experts think the market will grow quickly, with a CAGR of close to 22% between 2021 and 2026. And the affordable housing market could be part of what drives this growth.
- The central government has put out programs like the credit-linked subsidy schemes (CLSS) under the Pradhan Mantri Awas Yojana (PMAY) that have helped move towards the goal of housing for all.
- Last week, Anarock and PropTiger presented information about the housing market. From January to March, sales of homes in seven cities rose by 71% year over year, to 99,550 units, according to Anarock. Sales in eight major cities rose by 7% year over year, to 70,623 units, according to PropTiger.
Reasons for the Popularity of Housing Stocks in the Stock Market
Why buy housing-related stocks? Consider three long-term developments that should promote industrial growth:
- Spending More Time at Home
Most of us spent much more time at home because of the COVID-19 pandemic, and many workers are likely to work at least partly from home after the pandemic ends. Therefore, after a pandemic, people will probably want to buy homes more because they will spend more time at home.
- More People Want to Buy Homes
Some millennials have become adults without wanting or being able to buy a home. However, as this new generation ages, the number of families and the desire to own a home will increase. Any help from the national government to make paying off student loans easier should increase the demand for housing by easing the process for the youth to buy their own homes.
- Low Mortgage Rates
Mortgage rates have gone up from all-time lows, yet they are still low compared to the past. Low rates make it easier for people who want to buy a home to do so and let them pay more for their homes.
Top 5 High Growth Stocks in 2022: Stock Market Today
| Company Name | Last Price(Rs.) | Change | % Change | Net Profit(Rs. cr) |
| HDFC | 2,504.85 | 1.95 | 0.08 | 13,742.18 |
| LIC Housing Fin | 383.35 | 3.90 | 1.03 | 2,287.28 |
| HUDCO | 40.65 | -1.20 | -2.87 | 1,716.60 |
| PNB Housing Fin | 421.20 | -5.95 | -1.39 | 821.92 |
| Indiabulls Hsg | 130.00 | -2.25 | -1.70 | 696.11 |
(Data as of 10th Nov. 2022)
Detailed Information About Stocks to Invest
- HDFC (Market Cap* – INR 4,54,969 Cr.)
Housing Development Finance Corporation Limited was created to provide long-term loans to homebuyers.
- The company’s chief business is giving loans to corporations, individuals, developers, and cooperative societies.
- HDFC helps build, improve, buy, and fix houses, apartments, and commercial property in India.
Shareholding Pattern
| Holder’s Name | No of Shares | % Share Holding |
| NoOfShares | 1814469764 | 100% |
| Promoters | 0 | 0% |
| Foreign Institutions | 1229260116 | 67.75% |
| NBanksMutualFunds | 212439993 | 11.71% |
| CentralGovt | 2491632 | 0.14% |
| Others | 38138447 | 2.1% |
| General Public | 163074001 | 8.99% |
| Financial Institutions | 169065575 | 9.32% |
- LIC Housing Fin (Market Cap* – INR 20,864 Cr.)
LIC Housing Finance Ltd. is one of India’s biggest companies that provides housing loans.
- The company gives long-term loans so consumers can repair, buy, build, or modify homes.
- The company helps professionals create or buy nursing homes, clinics, office space, diagnostic centers, and equipment.
- The loans can be used for either personal or business needs.
Shareholding Pattern
| Holder’s Name | No of Shares | % Share Holding |
| NoOfShares | 550063000 | 100% |
| Promoters | 248842495 | 45.24% |
| Foreign Institutions | 113706434 | 20.67% |
| NBanksMutualFunds | 71225614 | 12.95% |
| Others | 13789215 | 2.51% |
| General Public | 68034224 | 12.37% |
| Financial Institutions | 34465018 | 6.27% |
- HUDCO (Market Cap* – INR 8,378 Cr.)
Housing and Urban Development Corporation, Ltd. is an organization in India that works on utility and housing infrastructure. It was started in 1970, and its headquarters are in New Delhi, India. HUDCO offers infrastructure financing services for utility, commercial, social, and industrial infrastructures. In addition, HUDCO has many financial services for projects in the information, communication, entertainment, and telecommunications (ICT) sectors.
- It gives loans and other financial help for rural housing, urban housing, cooperative housing, slum upgrading, repairs, and renovations, etc.
- It helps NGOs and private builders secure home loans, collects money for the state, public agencies, and private agencies, buys land, and collaborates with agencies that undertake the work.
- It offers design development, consulting, disaster mitigation, research and training, and other services.
Shareholding Pattern
| Holder’s Name | No of Shares | % Share Holding |
| NoOfShares | 2001900000 | 100% |
| Promoters | 1637677479 | 81.81% |
| Foreign Institutions | 4368573 | 0.22% |
| NBanksMutualFunds | 32176614 | 1.61% |
| Others | 25313483 | 1.26% |
| General Public | 178194380 | 8.9% |
| Financial Institutions | 124169471 | 6.2% |
- PNB Housing Fin (Market Cap* – INR 7,204 Cr.)
PNB Housing Finance Ltd. is registered with the National Housing Bank as a housing finance company (NHB).
- They give loans to companies and people so that they can buy, build, repair, or improve their homes.
- It also gives loans for commercial space, against property, and buying residential plots.
Shareholding Pattern
| Holder’s Name | No of Shares | % Share Holding |
| NoOfShares | 168615638 | 100% |
| Promoters | 54914840 | 32.57% |
| Foreign Institutions | 0 | 0% |
| NBanksMutualFunds | 3203774 | 1.9% |
| Others | 992727 | 0.59% |
| Financial Institutions | 2336189 | 1.39% |
- Indiabulls Hsg (Market Cap* – INR 5,933 Cr.)
Indiabulls Housing Finance Ltd. is in the business of giving home loans.
- The company helps pay for building and maintenance work on apartments, houses, flats, bungalows, townships, rooms, etc.
- They give plot loans and loans against residential, commercial, and rental property.
- The company also provides financial advisory and consulting services.
Shareholding Pattern
| Holder’s Name | No of Shares | % Share Holding |
| NoOfShares | 471596630 | 100% |
| Promoters | 45194807 | 9.58% |
| Foreign Institutions | 117932515 | 25.01% |
| NBanksMutualFunds | 4681238 | 0.99% |
| Others | 34831517 | 7.39% |
| General Public | 203778430 | 43.21% |
| Financial Institutions | 41610618 | 8.82% |
| GDR | 23567505 | 5% |
(*Data as of 10th Nov. 2022)
Conclusion
Before the ILFS and DHFL crises in the stock market, the housing finance market was steadily expanding. Since then, a lack of cash and the spread of the coronavirus have hit the sector hard. Hopefully, with the help of this blog, you got an idea of the best housing stocks to invest in during these tough times.
Piramal Finance is a great financing option for everyone. Visit their website to learn more about the products and services they offer.