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Home / Markets / Stock Markets /  Multibagger stock of 2022: HFC share hits 52-week high after this govt approval
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Multibagger stock of 2022: After the union cabinet approval for continuation of Pradhan Mantri Awas Yojana-Urban (PMAY-U) - “Housing for All" Mission up to 31st December 2024 on Wednesday, housing finance company stocks have given sharp upside move. In this HFC's stock rally, BSE listed Star Housing Finance Company share price hit 52-week high on Thursday. However, profit-booking triggered in the counter and the scrip ended in red zone. However, stock market experts are of the opinion that the housing finance stock will rebound strongly as the chart pattern suggests 'uptrend' and it may go up to 175 per share levels, once it breaches 160 levels on closing basis.

Speaking on the reason for housing finance stock hitting 52-week high, Ravi Singhal, CEO at GCL Securities said, "Though it was expected that the union cabinet would extend deadline for Housing For All mission, the cabinet approval with a new deadline has made things clear and now market is highly bullish on housing finance companies. This rise in the housing finance company has to be seen from this perspective as it is going to drive the stock for medium to long term."

Expecting strong rebound in the scrip, Sumeet Bagadia, Executive Director at Choice Broking said, "The BSE listed stock is in uptrend and it may go up to 175 apiece levels after sustaining above 160 hurdle." He said that the stock has strong support at 140 levels and any major dip in the stock should be seen as buying opportunity as stock may go up to above mentioned levels in next one to two months.

Star Housing Finance share price history

The small-cap housing finance share has delivered around 58 per cent return to its shareholders whereas it has given more than 76 per cent YTD return to its positional investors. Hence, this stock is one of the possible multibagger stocks of 2022. Current market cap of this stock is 279 crore and it ended on Thursday with a trade volume of 1,97,483. Its book value per share is 34.83.

The Union Cabinet on Wednesday approved the proposal of Ministry of Housing and Urban Affairs (MoHUA) for continuation of Pradhan Mantri Awas Yojana-Urban (PMAY-U) up to 31st December 2024 wherein financial assistance is to be provided for the completion of already sanctioned 122.69 lakh houses till 31st March 2022. Company was recently in news for raising $2.7 mn capital through preferential allotment. The capital has been subscribed by Arika Securities Pvt Ltd and Colo Securities Pvt Ltd.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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