It is understandable that housing pack as a whole is under performer for quite some time. But, there are some spots where one can do deep fishing and once the housing sector head for better times, enjoy the rewards.
Dewan Housing has a market cap of around 4200 crore with price to earning of 06, 1/4th of other players in the industry. Book value of Rs.158 and dividend of Rs.6/- against the face value of Rs.10/- it can better be counted as a defensive stock besides enjoying the rewards in terms of price appreciation.
Housing sector generally suffers from high debt equity ratio since it has to raise the money to fund its plan. But it is better placed in this area too when compared with other players. ROE of 11 as on 31 Mar 2015 and increasing reserves and with EPS of 24, one can expect decent return invest at current price.
We should remember that it is during the down turn in the market that depreciation in the price adds to our frustration level but, we should realize that those who invest in a systematic manner during such times are rewarded in the long run. Buy when every body runs away from the market and sell when the market is gung go, are the best maxim ; no doubt, our approach to the market is different during such times.
Invest with conviction with med to long term horizon.