Hi Hitesh Ji,
I have been holding PNB housing Finance since IPO and I have a question regarding PNB Housing & HFC’s in general. In one of the answers you had mentioned that “HFC rally might have run it’s course as per the price pattern”. It was the similar price pattern that you had observed during that end of the Pharma bull run. But, in HFC not all the stocks are correcting, If we see Gruh it’s going from strength to strength and trading at P/B of >20 and even HDFC is also trading at good valuation. If the growth of the HFC is over, can the sector leader command these kind of valuation, Gruh is trading at valuations which no other financial company is trading. But, we have not seen any signs of valuation compression in Gruh/HDFC.
HFC as a sector grown well in last few years. Now with the valuation correcting to decent level in the last 8 months, With real estate growth revival after a long time and with all the benefits that government is providing do you see any major negatives for the sector.
Regarding PNB housing, In Housing Probably they have best management after HDFC and very good business model and ever improving C/I & RoA ratios. Apart from their Parent & PE firm stake sale do you see any major negatives.
I know that the current midcap/smallcap carnage will give good no. of options for any investor. I thought of getting your opinion on this.
Thanks in Advance.