Accumulate Can Fin Homes; target of Rs 900: Geojit

Accumulate

Geojit's research report on Can Fin Homes

Can Fin Homes Ltd. (CANF) is the housing finance arm of Canara Bank. The company, headquartered in Bangalore, has a predominant presence in South India, with a focus on Tier 1 and Tier 2 cities. The loan book grew by 13% YoY and 2% sequentially to Rs. 34,053 cr. Operational changes during the transition to a central disbursement system caused a slowdown. The client base is now at Rs. 2.53 lakh. Quarterly disbursements fell 9% YoY due to a fraud incident at the Ambala branch, leading to extensive audits across all branches and a slowdown in overall branch activities. The management anticipates a revival in demand by the end of the year, driven by the addition of customers from new channels, including developer tie-ups. The Net Interest Margin (NIM) is expected to remain between 3.6% - 3.7%, supported by completed repricing activities and a favourable credit rating adjustment by ICRA, which should ease pressure on the cost of funds.

Outlook

We maintain an Accumulate rating on the stock with a target price of Rs. 900 based on 2x FY26E BVPS.

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Accumulate - 2722024 - GEO