CanFin Homes rises after Q1 performance impresses analysts

The company’s gross non Performing Assets (NPA) was stable YoY while provision coverage fell both YoY & QoQ.

Shares of CanFin Homes rose about a percent on July 20 after the company announces ots Q1 numbers. The Canara Bank promoted housing loan provider reported a 13.1 percent year-on-year (YoY) jump in net profit at Rs 183.5 crore for the first quarter that ended June 30, 2023.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, jumped 13.9 percent, coming at Rs 285.1 crore against Rs 250.4 crore in the corresponding quarter of FY23.

As of 11.50 am, the stock traded at Rs 825, up 0.82 percent on BSE.

Morgan Stanley has an equal weight rating on Can Fin Homes. It said the company’s profit beat estimates by 9 percent led by higher net interest margin and lower operating costs. The NIM expanded 17 bps QoQ to 3.6 percent. Opex was down 16 percent QoQ.

The company’s gross non Performing Assets (NPA) was stable YoY while provision coverage fell both YoY & QoQ, analysts said. Loans rose 18 percent YoY & 3 percent QoQ during the quarter.

Jefferies has a buy rating on the counter with target at Rs 850. It said Q1 PAT was 7 percent ahead of its estimates, The broker said credit cost fell 14 bps QoQ, but was a tad higher than estimates.