Can Fin Homes Ltd. share price target

Can Fin Homes Ltd is the housing finance arm of Canara bank. The company has dominance in South India with focus on Tier 1 and Tier 2 cities. It provides housing loans, composite loans, non-housing loans,...

We believe CANF has notable scope for expansion in valuations and we maintain a BUY with a revised target price of Rs 750.

We believe CANF has notable scope for expansion in valuations and hence maintain a BUY rating on the stock with a target price of Rs 800 (3x FY23E ABV).

Can Fin Homes' (CANF) PAT grew 14% QoQ (down 4% YoY) to INR1.24b (5% beat) in 2QFY22. Despite an in-line PPoP of INR1.63b (up 7% QoQ), the PAT beat was driven by provision write-backs as a result of utilisation of COVID19 provisions for the OTR 2.0 restructured asset pool and for write-backs. GNPA/NNPA stood at 0.78%/0.47%, with a PCR of ~40%. CANF undertook net provision write-backs of INR62m in 2QFY22. Aggregate restructured loans in 2QFY22 stood at INR5.72b (~2.8% of loans). CANF is our favoured play among small housing financiers as it is getting back to its old ways of healthy growth without any undue pressure on...

We recommend a BUY on the stock with a target price of Rs 738/share

Can Fin Homes (CANF) management indicates optimism on the growth front and expects loan growth to be in the range of ~18%-20% in FY22, fuelled by the demand in the affordable real estate segments.

Can Fin Homes Ltd. is a South India-based housing finance company

Stable asset quality , outlook remain positive. Can Fin Homes Ltd is the housing finance arm of Canara bank. The company has dominance in South India with focus on Tier 1 and Tier 2 cities. It provides housing loans, composite loans, non-housing loans,...

We revise our rating to BUY from HOLD with a revised target price of Rs 605 (2.3x FY23E ABV).