Nirmal Bang Upgrades Can Fin Homes Shares To 'Buy' On Attractive Valuations, Sees 29% Upside

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Nirmal Bang Report

While Q3 disbursement growth was flattish due to registration issues in Karnataka/ Telangana, Can Fin Homes Ltd. is seeing an improvement in Jan-25. It expects a disbursement growth of ~20% in FY26 with a loan growth of ~15%.

Expect net interest margin to trend in line with guidance at 3.5% aided by lower cost of funds in FY26.

Cost/income ratio is expected to be elevated with increased investments in IT and expansion. Expect asset quality trends to remain in line with guidance.

The stock has corrected 13% over the past month and is trading at a 22% discount to five-year average price/adjusted book value. Upgrade to Buy with an unchanged target price of Rs 775 (1.6x Dec-26 P/ABV) as the valuation is attractive.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.