Neutral Can Fin Homes; target of Rs 915: Motilal Oswal

Motilal Oswal's research report on Can Fin Homes

Can Fin Homes’ (CANF) PAT for 2QFY26 grew ~19% YoY to ~INR2.5b (~5% beat). PAT grew 16% YoY in 1HFY26 and is expected to rise ~20% YoY in 2HFY26. NII grew 19% YoY to ~INR4b (~8% beat) in 2QFY26, while fees and other income stood at ~INR63m (PY: INR72m). Opex rose ~28% YoY to INR762m (~13% higher than MOFSLe). The cost-toincome ratio stood at ~19%. (PQ: ~18%, PY: ~17%). PPoP grew ~16% YoY to INR3.3b (~5% beat). The effective tax rate for the quarter stood at ~24.2% (PQ: 19.4% and PY: ~22.8%). CANF’s 2QFY26 RoA/RoE stood at ~2.45%/~18.4%.

Outlook

Reiterate our Neutral rating with a TP of INR915 (premised on 1.7x Sep’27E P/BV).

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