Buy Can Fin Homes; target of Rs 900: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Can Fin Homes has recommended buy rating on the stock with a target price of Rs 900 in its research report dated August 08, 2023.

Broker Research

August 10, 2023 / 17:27 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Can Fin Homes

We hosted the Can Fin Homes senior management represented by MD&CEO, Mr. Suresh Iyer who suggested that risk monitoring needs to be prioritized. Hence to alleviate risk management gaps, processes are being tightened. As part this exercise, CMS centralization and staff rotation brought to light fraud of Rs385mn. To ensure such an episode is not repeated, processes are being revamped which may take 1-2 quarters to execute. However, as per company loan growth would not be impacted. While near term investor concern is another irregularity cropping up, basis current findings management is confident that another episode would not occur. Stock could remain range bound until investors derive confidence from consistency in earnings.

Outlook

However, we remain optimistic about Canfin as Mr. Iyer is taking the right steps to ensure structural issues are ironed out. We cut PAT for FY24/25/26E by ~4% each and hence tweak multiple from 2.3x to 2.2x on Sep’25E ABV. Retain BUY but reduce TP from Rs950 to Rs900.

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