Buy Home First Finance; target of Rs 1450: Motilal Oswal

Motilal Oswal's research report on Home First Finance

Home First Finance’s (HOMEFIRS) 2QFY26 PAT grew 43% YoY to INR1.32b (in line). PAT in 1HFY26 grew ~39% YoY, and we expect PAT in 2HFY26 to grow 48% YoY. NII grew ~32% YoY to INR2.1b (in line). Other income surged 66% YoY to INR699m (vs. MOFSLe of INR600m), aided by higher assignment income during the quarter, which stood at INR250m (PY: ~INR202), higher investment income, and higher fee and commission income.

Outlook

We estimate the company to clock a ~25% AUM CAGR over FY25-FY28 and NIM (as % of average AUM) of 6.1% each in FY26/FY27. Reiterate our BUY rating on the stock with a TP of INR1,450 (premised on 2.8x Sep’27E BVPS).