Star Housing Finance shares rise after management rejig, expansion plans

Shares of Star Housing Finance (Star HFL) surged during the trading session on Wednesday. The multibagger housing finance player is looking to strengthen its place in Western India, particularly Rajasthan and it has overhauled its top management recently.

The BSE-listed rural focused housing finance player has appointed Kalpesh Dave as chief executive officer (CEO) and Anoop Saxena as the chief operating officer (COO) accelerating its growth trajectory and enhancing its position in the industry, the company said in an exchange filing.

Shares of Star Housing Finance gained 3 per cent to Rs 46.75 on Wednesday and the company was commanding a total market capitalization of more than Rs 350 crore. The stock has delivered a return of 50 per cent from its 52-week low at Rs 31.26 hit on July 1, 2022. The stock has delivered a return of 300 per cent from its Covid-19 lows.

Earlier this week, Star Housing Finance added a new address in Jaipur. The decision to expand into a larger premises in Jaipur is a testament to the remarkable growth achieved by the company in the previous year and the ongoing progress in the current fiscal year, the company said in an exchange filing.

"This expansion aligns with Star HFL's strategic plans to tap into the immense potential of the rural housing finance sector in Rajasthan. With a reported shortage of more than 4.2 lakh units in rural housing, the state presents a significant opportunity for mortgage providers to establish a prominent presence and cater to the needs of the region," it added.

Mumbai-headquartered Star HFL is registered as a primary lending institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY). Star HFL is a rural focused housing finance company, which operates in rural and semi-urban geographies to provide housing finance assistance to first time EWS/LIG home buyers for purchase or construction of low-cost housing units. 

Also read: Sensex, Nifty hit record highs: CLSA says market 14% overbought; what Citi, others say

Also read: Infosys, TCS, Wipro: These Nifty IT stocks destroyed wealth in last 2 years. Is it time for bottom fishing?