In October last year, the market found itself in the clutches of a credit crunch triggered by IL&FS default. The non-banking financial companies (NBFCs) were the worst hit as the rising cost of credit put the brakes on the upward earnings trajectory. And adding to the investors’ pessimism, the crude prices hit a peak to $84 per barrel.
In midst of all this turmoil, affordable housing finance company Aavas Financiers made a weak debut. The stock hit the bourse at Rs.758 against its issue price of Rs.818–821. The bearishness around the NBFC stocks rubbed off on the company, which caters to low and middle income families in semi-urban and rural areas. The stock plunged to an all-time low of Rs. 611.50 on October 31, 2018.
But since then, the NBFC scripted an impressiv