Do agree that there are multiple headwinds for the HF industry:
- The Housing market didn’t recover yet fully from the DeMon blow (Black vs White economy)
- No major launch of housing projects across the major cities, inventories getting liquidated at a slow pace
- Loan ticket size shrinking
- Newer entries into HF market increasing competition potentially shirking the market share pie.
- No clarity yet on AH market and launch by major builders, which everyone looking forward for:
Though there is increasing competition from banks as well as increasing share, the HFC’s had been growing at a faster pace (Info - Reliance HF Q2 2018 investor presentation).
Problem of Canfin is for multiple reasons again in addition to the reasons highlighted previously:
- It had a dream run thru the initial months of the current year. It could be catching some breath here.
- Skepticism in the mind of investors on the kind of growth it could deliver going forward.
Well, while there is all around enthusiasm on the ReCap, some equally opine that it could be a “water gun” instead of a Bazooka.
Indeed, DHFL seems to be coming out of the past (corporate governance issues) and market looking for a re-rating. Could you be referring to Harshil Mehta the Jt MD CEO ?.
Discl: Exited Canfin prior to results at 553 (marginal loss). Continue invested in DHFL and IBHFL.