Home First Finance Gets 'Buy' Upgrade From ICICI Securities, Sees 27% Upside

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ICICI Securities Report

Home First Finance Company India Ltd. was listed in February 2021. Ever since, it has managed to stand out among peers in the affordable housing finance space, consistently delivering 6–8% QoQ growth every quarter. This, in our view, is testament to its business’ resiliency and management’s ability to navigate external challenges arising from a rising rate cycle, regulatory changes (disbursements recognition on actual payment to customers rather than cheque issuance) and state-specific issues (e-khata issue in Karnataka).

Successful execution of its business strategies has led to judicious capital consumption with Home First’s financial leverage (AUM/net worth) improving to ~5x by Dec’24 (~3x in FY21) alongside stable asset quality.

Fresh capital of Rs 12.5 billion would allow adequate capital to fund incremental growth, as it plans to reach Rs 400 billion in AUM by FY30.

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