YES Securities has given Buy recommendation for Home First Finance Company with a target price of Rs. 700 in its research report issued on Jun 12, 2021
YES Securities’ research report on Home First Finance Company
HomeFirst has a well‐defined target operating model in terms of customers, products, locations, sourcing, underwriting and collections that is delivering consistent quality outcomes. Company’s AUM witnessed a CAGR of 45% over FY18‐21 and stood at Rs41.4bn at the end of the period. HomeFirst is having a steadfast focus on affordable housing loans (Home Loans 92% of AUM, Portfolio & Disbursement ATS <Rs0.6mn.
In our view, the longevity of high‐growth phase and expansion in core profitability is not yet fully factored in the current valuation of 3x FY23 P/ABV. With a view that HomeFirst is a structural compounder, we initiate coverage on the company with a 12m price target of Rs700.