Stay Away from DHFL

  Housing loan penetration has been staying at 2% in India when compared to China at 50%. The data of housing loan has been increased from 2 lakh crore to 6 lakh crore in 2018 and this boosted interest on many housing stocks like DFHL, GIC housing, PNB housing and India bull housing finance but what happens when these loans are becoming NPA , then the liquidity arises on selling assests will be dead lock for many companies. The same scenario happened in USA for lehman brother created big storm in banking sector on 2008.
       Considering the scenario happening today with many NBFC, the book value of DHFL is very lucrative but capitalize those assets at market value is question during crisis. We recommend to stay away from DHFL for time being and revisit after election.