Sharekhan has given Buy recommendation for Can Fin Homes with a target price of Rs. 760 in its research report issued on May 02, 2022

Sharekhan’s research report on Can Fin Homes

Can Fin Homes reported PAT of Rs. 123 crore, which was a tad below our expectation of Rs. 127 crore, increased by ~20% y-o-y and 6% q-o-q. This was primarily due to higher provisions than estimated. Provisions stood at Rs. 30 crore in Q4FY2022 versus Rs. 16 crore in Q3FY2022. Disbursements rose by 35% y-o-y and 9% q-o-q and led to strong AUM growth of 21% y-o-y and 7% q-o-q. Management plans to disburse ~Rs. 10,000 crore in FY2023E. Asset quality improved during the quarter. GNPA ratio was at 0.64%, down 28 bps y-o-y and 7 bps q-o-q.

Outlook

At the CMP, the stock trades at 2.4x/ 2.1x its FY2023E and FY2024E P/BV, respectively. We maintain our Buy rating on Can Fin Homes with a revised PT of Rs. 760.

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