Top 3 HFCs struggle as liquidity tightens: should you buy their stocks?

Share prices of Dewan Housing, Indiabulls Housing, and PNB Housing have declined 30-80% in the past one year

The Reserve Bank of India (RBI) stating it’s not just the liquidity crisis for non-banking financial companies but that of solvency seems the latest blow to the sector, further weighing down stocks of Indiabulls Housing Finance (IHFL) and Dewan Housing Finance (DHFL), the third and fourth housing finance companies (HFCs) in order. 

Despite Monday’s generous support to these stocks as well as that of PNB Housing Finance (fifth in top five), they are still down 30-80 per cent in the last one year. For DHFL, the adverse developments with its deposit book put further pressure on the stock, taking it down