Can Fin Homes — Near-Term Growth Headwinds; Efforts To Mitigate Impact Of Tech Transformation: Motilal Oswal

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Motilal Oswal Report

Can Fin Homes Ltd. has consistently maintained strong asset quality over the years, and we expect this trend to continue. However, to achieve its guided loan growth and unlock further valuation re-rating, the company will need to accelerate disbursements in the coming quarters.

A sustained pickup in loan growth, combined with steady margins and controlled credit costs, will be key factors driving investor confidence.

We estimate a loan CAGR of ~12% over FY24-27, as there may be some transitory impact on business volumes while the company undergoes its tech transformation. The stock trades at 1.2x FY27 price/book value, and we estimate a CAGR of 10%/9%/12% in net interest income/pre-provision operating profit/PAT over FY24-27, with an RoA of 2.2% and RoE of ~16% in FY27.

We maintain a Neutral rating on the stock with a target price of Rs 675 (premised on 1.4x Sep’26E P/BV).

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