We initiate coverage on the Housing Finance Companies (HFC's) as we believe that the government's strong policy initiatives like Housing for All by 2022, lays emphasis on affordable housing and its plans to develop 100 smart cities is likely to generate huge demand for houses going forward. Further favorable industry dynamics like lower mortgage penetration, shortage of urban and rural housing along with rising affordability is likely to drive the housing demand. We also expect RBI to soften the interest rate by upto 100-150 bps over the next 12 to 18 months, resulting in lower EMI for the borrowers. We believe HFC's are well placed compared to banks to fund this...