Motilal Oswal has given Buy recommendation for Can Fin Homes recommended buy rating on the stock with a target price of Rs 750 in its researc with a target price of Rs. 750 in its research report issued on May 03, 2022
Motilal Oswal’s research report on Can Fin Homes
Can Fin Homes (CANF) reported an operationally healthy quarter wherein advances grew 21% YoY and asset quality improved further with GNPA declining 7bp QoQ to ~0.6%. However, credit costs were elevated since CANF shored up its standard asset provisions to strengthen its balance sheet. CANF has managed the pandemic upheaval and aggression from banks really well and delivered a 3% YoY PAT growth in FY22 despite the ~20bp/30bp compression in spreads/margin, respectively. CANF has now got back to its old ways of delivering strong loan growth and maintaining superior asset quality. Rumors on the resignation of the MD/CEO and any materiality from the NHB audit were denied and put to rest by the management.
We maintain our BUY rating with a target price of INR750 (based on 2.4x FY24E BVPS).