Credit Suisse is positive on housing finance companies, and expects them to benefit from a multi-year housing cycle. The brokerage house sees mortgage loans doubling to $600 billion in the next five years, and expects mid-teen housing loan growth led by mortgages.
However, India’s mortgage penetration will remain low at 13 percent versus 18-70 percent globally, according to Credit Suisse, which is upbeat on mortgage lender Housing Development Finance Corporation (HDFC) with a target price of Rs 3,350. It has a target price of Rs 830 for Home First.
Credit Suisse is 'neutral' on PNB Housing with a target of Rs 485, and had an 'underperform' rating on LIC Housing Finance with a target price of Rs 390.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
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