Sharekhan has given Buy on the stock with a revised price target (PT) of recommendation for Can Fin Homes with a target price of Rs. ekhan is bullish on Can Fin Homes has recommended buy on the stock with a revised price target (PT) of Rs. 712 in its research report issued on Jan 27, 2022

Outlook

At the CMP, it trades at 2.7x/2.3x itsFY2022E and FY2023E P/BV. The company is one of the favourite plays in the housing segment with better asset quality and superior underwriting practices. The company continues to maintain better asset quality with GNPA ratio at 0.7% as of December 2021 and has demonstrated its resilience in turbulent times. CFHL enjoys strong parentage and superior credit rating, which enables it raise funds at lower costs. With its ability to leverage its balance sheet, we expect the company to deliver RoE of 17-18% over FY2022E to FY2024E. Hence, we maintain our Buy rating on CFHL with an unchanged price target (PT) of Rs. 712.

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