Buy Can Fin Homes, target price Rs 935: ICICI Direct

ICICI Direct has buy call on Can Fin Homes with a target price of Rs 935. The current market price of Can Fin Homes is Rs 756.7. Time period given by analyst is 6 months when Can Fin Homes price can reach defined target.

Can Fin Homes, incorporated in the year 1987, is a Mid Cap company (having a market cap of Rs 10068.45 Crore) operating in NBFC sector.

Can Fin Homes key Products/Revenue Segments include Interest and Fees & Commission Income for the year ending 31-Mar-2023.


Financials
For the quarter ended 30-06-2023, the company has reported a Standalone Total Income of Rs 824.09 Crore, up 7.82 % from last quarter Total Income of Rs 764.29 Crore and up 34.75 % from last year same quarter Total Income of Rs 611.58 Crore. Company has reported net profit after tax of Rs 183.45 Crore in latest quarter.

Investment Rationale
The company has been best in class HFC player with a robust business model & underwriting practices, which resulted in healthy earnings growth with GNPA <1% across cycles. Strategy adopted by new management to strengthen processes & IT infrastructure to further aid business growth and RoA. At the CMP, CFHL trades at ~1.9x FY25E ABV, which seems a good opportunity given its fundamental strength and historical valuation.

Promoter/FII Holdings
Promoters held 29.99 per cent stake in the company as of 30-Jun-2023, while FIIs owned 10.72 per cent, DIIs 27.97 per cent.