Moneycontrol
Jan 20, 2017 03:26 PM IST IST | Source: Moneycontrol.com

Buy Can Fin Homes; target of Rs 2116: Axis Direct

Axis Direct is bullish on Can Fin Homes has recommended buy rating on the stock with a target price of Rs 2116 in its research report dated January 19, 2017.


Axis Direct's research report on Can Fin Homes


Can Fin Homes Ltd (CFHL) reported significant earnings growth of 41% YoY at Rs 60 cr which was led by healthy NII growth backed by strong advance growth and improvement in NIMs. CFHL, advance growth for Q3FY17 was at 28% at Rs 12,688 cr and management maintained 27% loan book growth in FY17 to reach Rs. 13,500 cr. CFHL’s NII during the quarter was up by 31% at Rs 119cr.


Outlook

CFHL has reported consistently high loan growth along with improvement in margins with stable asset quality. Also, management is optimistic to maintain growth momentum with target of Rs. 13,500 cr loan book by FY17. We believe valuation multiple expansion will be contingent upon sustainability of high loan book growth, further improvement in profitability and stable asset quality especially LAP. At CMP the stock trades at 4.3x its FY17E ABV and 3.4x FY18E P/ABV. We value CFHL at FY18E P/ABV multiple of 4.2x to arrive at target price of Rs. 2116 and continue to have BUY rating.

For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sections
Follow us on
Available On