Bernstein has identified a significant opportunity in the affordable housing finance sector, particularly for stocks like HomeFirst and Aadhar Housing Finance. The brokerage notes that these companies are nearing an inflection point in both growth and asset quality, making them attractive investments amid the recent market selloff. The report highlights that affordable housing finance companies (AHFCs) have experienced a sharp derating in stock prices over the past 6-9 months, with current price-to-earnings multiples at three-year lows. Bernstein emphasizes that despite this correction, the fundamentals for AHFCs are improving, with signs of sequential growth in disbursements and stabilizing early-stage delinquencies. The analysts argue that AHFCs are better positioned than larger non-banking financial companies (NBFCs) due to their secured loan books and favorable funding profiles. Bernstein values HomeFirst at a target price of ₹1,430 based on a 22x FY27 earnings multiple and Aadhar at ₹600 with a 20x FY27 earnings multiple, indicating significant upside potential. The report underscores the long-term growth thesis for affordable housing in India, driven by low mortgage penetration and the need for operationally intensive models to serve mass-market borrowers.