Buy Home First Finance; target of Rs 1500: Motilal Oswal

Motilal Oswal is bullish on Home First Finance recommended buy rating on the stock with a target price of Rs 1500 in its research report dated May 03, 2025.

Broker Research

May 05, 2025 / 15:17 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Home First Finance

HomeFirst’s 4QFY25 PAT grew 25% YoY to INR1.05b (in line). FY25 PAT grew ~25% YoY to INR3.8b. 4Q NII grew 26% YoY to INR1.7b (in line). Other income jumped 52% YoY to INR533m, aided by higher assignment income of INR300m, Opex grew 38% YoY to INR803m (in line). PPoP rose ~28% YoY to INR1.46b (in credit costs of ~25bp (PQ: ~34bp and PY: ~12bp). In Apr’25, HomeFirst successfully raised equity capital of INR12.5b via a QIP. After the capital raise, the proforma net worth stood at INR37.5b, leverage declined to ~3.3x and CRAR improved to ~51%.

Outlook

HomeFirst trades at 2.5x FY27E P/BV and we believe that it will sustain its premium valuations over peers because of the strong execution that it has demonstrated over the last four years. Reiterate our BUY rating on the stock with a TP of INR1,500 (premised on 3.2x Mar’27E BVPS).

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