Sharekhan has given Buy recommendation for Can Fin Homes with a target price of Rs. 712 in its research report issued on Dec 03, 2021
Sharekhan’s research report on Can Fin Homes
Can Fin Homes commands higher valuations led by superior asset quality with best underwriting practices. Inherent, to the company’s strategy it largely caters to salaried customers in metros and Tier-I/II cities. This makes its customer segment less risky with average ticket size of Rs. 21.02 lakh and ~74% of its customers are salaried and professionals. It competes with large HFCs and public/ private sector banks. We believe Can Fin Homes is one of the favoured plays among affordable/ mid size housing financiers with a healthy loan book growth and steady spreads going ahead. The company’s ability to recover market share through differential pricing for customer segments/ geographies, makes it a preferred play in the affordable space.
We re-initiate coverage on Can Fin Homes with a Buy rating and PT of Rs. 712. At CMP, CFHL trades at 2.3x of FY23E P/BV.