Home First Finance Company India Ltd. share price target

HomeFirst’s 1QFY26 PAT grew 35% YoY to INR1.2b (in line). NII grew ~33% YoY to INR1.9b (in line). Other income jumped 60% YoY to INR609m (est. INR395m), aided by higher assignment income of INR247m (PY: ~INR195), higher fee income from insurance commissions, and higher investment income from the proceeds of the equity raise in Apr’25.

Home First Finance (HomeFirst), in its FY25 Annual Report, highlighted its digital-first approach to making home ownership more accessible by offering innovative housing finance solutions and leveraging technology to streamline processes.

HomeFirst’s 4QFY25 PAT grew 25% YoY to INR1.05b (in line). FY25 PAT grew ~25% YoY to INR3.8b. 4Q NII grew 26% YoY to INR1.7b (in line). Other income jumped 52% YoY to INR533m, aided by higher assignment income of INR300m (PY: ~INR150m).

Home First Finance (HomeFirst) in Apr’25 raised INR12.5b through a qualified institutional placement (QIP) at INR970 per share.

Home First Finance (Home First) was listed in Feb’21. Ever since, it has managed to stand out among peers in the affordable housing finance space, consistently delivering 6–8% QoQ growth every quarter.

Exhibits strong leadership in the affordable housing space

Home First Finance Company (HFFC) reported robust 3Q FY25 results driven by continued growth in disbursals (Rs 1,193 crore, +18.4% y-o-y, +1.4% q-o-q). AUM reached Rs 11,945 crore (+32.6% y-o-y, +6.4% q-o-q).

Home First Finance (HOMEFIRST)’s 3QFY25 PAT grew 24% YoY to INR974m (in line). NII grew 21% YoY to INR1.6b (in line). Other income grew 42% YoY to INR517m (10% above MOFSLe), fueled by higher insurance commission income.

We met with the senior management of Home First Finance, represented by Mr. Manoj Viswanathan, MD & CEO, and Ms. Nutan Gaba Patwari, CFO, to gain insights into the current industry dynamics in affordable housing finance and the way forward for the company.

Home First Finance Company (HFFC) reported strong 2Q FY25 results with continued momentum in disbursals (Rs 1,177 crore, +22.7% y-o-y, +1.2% q-o-q).
AUM exhibited robust growth to reach Rs 11,229 crore (+34.2% y-o-y, +7.2% q-o-q).

Home First Finance (HOMEFIRS)’s 2QFY25 PAT grew 24% YoY to INR922m (in line). 1HFY25 PAT grew 25% YoY to ~INR1.8b and we expect 2HFY25 PAT to grow ~23% YoY.

Home First Finance Company (HFFC) reported strong 1Q FY25 results as the company crossed the Rs 10,000 crore AUM milestone, clocking a robust 34.5% y-o-y growth to reach Rs 10,478 crore as of 31 June 2024.
Loan disbursals increased by 29.9% y-o-y to Rs 1,162 crore during the quarter.

1QFY25 PAT grew 27% YoY to INR878m (in line). NII grew 18% YoY to INR1.46b (in line). Other income grew 34% YoY to INR382m.

Hits AUM milestone with in-line operating metrics

Home First in May’24 crossed the AUM milestone of ~INR100b, delivering
an AUM CAGR of ~28% over FY20-24. The company has identified Uttar
Pradesh (UP), Madhya Pradesh (MP) and Rajasthan as its emerging states,
which will help Home First sustain AUM growth.

Stellar AUM growth with stable operating metrics

Home First Finance’s 4QFY24 PAT grew 30% YoY to INR835m (in line), while its FY24 PAT grew 34% YoY to INR3.1b.

Strong growth momentum continues

The highlight of Home First Finance’s (HomeFirst) Q2FY24 result, including the last seven quarters, is steady sequential earnings growth in the range of 5-8% in each quarter and sustained AUM growth at 8% QoQ during the past 8 quarters.
The same resulted in RoE expanding to 15.6% by Q2FY24 from 6% in Q2FY21.