Star Housing Finance soars by 2.14 percent as the AUM crosses Rs 100 crore mark

The share price of Star Housing Finance gained by 2.14 per cent when the BSE Sensex closed in the red by more than 400 points on Tuesday.

The share price of Star Housing Finance gained by 2.14 per cent when the BSE Sensex closed in the red by more than 400 points on Tuesday. By jumping higher by more than 2 per cent the stock also managed to close above its 200D SMA, indicating a positive bias in the share price on a weak trading day for the market. 

Star Housing Finance traded with a positive bias on Tuesday as the company announced that it has crossed the Asset Under Management (AUM) of Rs 100 crores during the financial year.

The housing finance companies have shown relative outperformance on the bourses lately. Several triggers are at play for the housing finance companies with the improving demand scenario for the housing market aided by the improvement in affordability for the end users as the interest rates are low and expected to remain low for a foreseeable future.

The demand especially from the first-time home buyers is improving and the affordable housing demand is also on the rise. 

Star Housing Finance is one such company that stands to gain from a positive trend in the affordable housing segment. This micro-cap company with a free float market capitalisation of Rs 79.62 crore and a full market capitalisation of Rs 134.95 crore is trading at a PE multiple of 156.29. The financial performance has been flat for teh compnay and can be expected to improve as the overall housing demand improves and the economic activity picks up post pandemic related lockdowns.