Hold Home First Finance Company; target of Rs 1003: Khambatta Securities

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26 Aug, 2025 12:21

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Khambatta Securities' research report on Home First Finance Company

Home First Finance Company (HFFC) reported solid results as the company made the highest-ever quarterly disbursals in 1Q FY23. AUM registered a robust 35.8% y-o-y growth to reach Rs 5,832 crore as of 31 June 2022. Loan disbursals increased by 117.0% y-o-y to Rs 661 crore during the quarter. NII expanded 44.0% y-o-y to Rs 94.0 crore as net revenues increased 22.2% y-o-y to Rs 108.6 crore. PAT increased 46.0% y-o-y to Rs 51.2 crore. Gross Stage 3 ratio stood at 2.1% as of June-end compared to 2.3% in March 2022. GNPA ratio based on the old classification was 1.2% (vs 1.3% in Mar-22). GNPA provision coverage ratio stood at 45.8% in Jun22 vs 47.1% in Mar-22. PCR without the impact of the new RBI circular was 81.0% in Jun-22 vs 83.6% in Mar-22 and 69.1% in Dec-21. Total CRAR was 52.3% while Tier-1 capital was 51.8% as of June-end. Physical branches and total distribution points increased from 80 to 93 and from 200 to 224, respectively on a q-o-q basis.

Outlook

The HFFC stock has appreciated by 26% since we initiated coverage on the company on 01 February 2022. Marginally revising upward FY24E earnings, we value HFFC at Rs 1,003 (up from Rs 988), implying a FY24E P/E of 35x and P/BV of 4.3x and informing an upside of 6%. Consequently, we change our rating for the stock from BUY to HOLD as we believe, at current levels, the stock is near its fair value.

More Info

At 17:30 Home First Finance Company India was quoting at Rs 941.70, down Rs 8.45, or 0.89 percent.

It has touched an intraday high of Rs 971.45 and an intraday low of Rs 936.60.

It was trading with volumes of 11,873 shares, compared to its thirty day average of 11,476 shares, an increase of 3.46 percent.

In the previous trading session, the share closed up 0.45 percent or Rs 4.25 at Rs 950.15.

The share touched its 52-week high Rs 1,004.40 and 52-week low Rs 535.55 on 16 August, 2022 and 21 September, 2021, respectively.

Currently, it is trading 6.34 percent below its 52-week high and 75.65 percent above its 52-week low.

Market capitalisation stands at Rs 8,259.13 crore.

 For all recommendations report, click here

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Home First Finance Company - 240822 - khamb