Home First Finance Company India Ltd. share price target

Key highlight of Home First Finance’s (HomeFirst) Q1FY24 result is that it is sustaining steady sequential earnings for 6th consecutive quarter. Reported PAT grew 8% QoQ / 35% YoY to INR691mn in Q1FY24 and RoE expanded to 15%. RoE expansion was mainly driven by the company’s ability to sustain growth momentum and maintain steady ~4% RoA even while expanding the balance sheet.

We attended Home First Finance’s (HomeFirst) tech and underwriting session, in which the company showcased how it services home loan customers in affordable HL space. Key differentiators include: a) End-to-end digital loan process with three different apps (but integrated with each other via SalesForce) for connectors, customers and employees

Home First Finance has reported a healthy set of numbers portraying steady growth in disbursements at ? 8,691mn as of Q4FY23 (up by 11.4% QoQ) and ? 30,129mn as of FY23 (up by 48.4% YoY) on account of strong execution, leading to an AUM growth by 33.8% YoY and 6.6% QoQ. The PAT stood at ? 640mn as of Q4FY23 and ? 2,283mn as of FY23 supported by stable growth in the NIM at 6.1% and 6.4% respectively.

Home First Finance (HomeFirst) reported PAT growth of 9% QoQ / 33% YoY at Rs640mn in Q4FY23, translating into 3.9% RoA and 14.4% RoE. Earnings were driven by robust 7% QoQ / 34% YoY AUM growth, 11% QoQ / 38% YoY PPoP growth and by containing credit cost at 40bps during the quarter.

Strong growth momentum; asset quality improves

Home First Finance (HomeFirst) has reported PAT of Rs587mn in Q3FY23, ahead of our estimate of Rs567mn. This translates to 3.8% RoAs and 13.7% RoEs. It reported 8% QoQ/ 28% YoY PAT growth, 10% QoQ/ 25% YoY PPoP growth and 8% QoQ/ 35% YoY AUM growth. Earnings momentum sustained due to higher NII, flat QoQ opex growth offset by modest assignment income.

Home First reported a robust performance both on profitability front and balance sheet front. The company witnessed a continued momentum on the disbursements at ? 780 Cr, up from ? 569 Cr in Q2 FY23 (Growth of 37% YoY and 11.1% QoQ). The AUM saw a robust growth at ? 6,751 Cr from ? 4,994 Cr, grew by 35.2% YoY and 7.6% on QoQ basis.