Buy Can Fin Homes; target of Rs 900: HDFC Securities

HDFC Securities is bullish on Can Fin Homes has recommended buy rating on the stock with a target price of Rs 900 in its research report dated July 20, 2023.

Broker Research

July 21, 2023 / 16:40 IST

Buy

26 Aug, 2025 12:21

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HDFC Securities' research report on Can Fin Homes

Can Fin Homes (CANF) reported a steady quarter as loan growth at ~18% YoY was in line with management guidance of ~18-20%, driven by moderate growth in disbursals (+14% YoY). Lagged asset repricing and a mild softening in the funding environment helped improve spreads/NIMs sequentially by 16/11bps and these are likely to sustain during FY24. CANF upped its efforts to reduce sourcing dependence on DSAs (~80%), by way of investing in alternate channels such as builders (APF), branches (15 to be added in FY24), and Tech for digital sourcing, which is likely to further augment loan growth in a highly competitive environment. Asset quality stayed steady with slippages from the restructured portfolio at sub-10%, within the guided range.

Outlook

We marginally tweak our FY24/FY25 earnings estimates and maintain BUY with a revised RIbased TP of INR 900 (implying 2.4x Mar-25 ABVPS). CANF remains our top pick among HFCs.

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