Can Fin Homes Share Price Rises As Morgan Stanley Hikes Target Price Post Q2 Results
Can Fin Homes share price rose 2.56% to Rs 895.85 apiece. It erased gains to trade 0.04% down at Rs 838 apiece as of 2:37 p.m.
Can Fin Homes Ltd. share price rose in the special Muhurat Trade session as Morgan Stanley maintained an Overweight rating and hiked target price following an upbeat second-quarter result. The brokerage has given a target price of Rs 1,000 from Rs 970.
The current target price implied an upside of 19% from Monday's close price.
Can Fin Homes has surprised the street with better-than-expected Net Interest Margin expansion. Its asset quality has also improved, Morgan Stanely said. The brokerage is projecting Can Fin Home's NIM to be of 4%, 3.9%, and 3.8% for the financial years 2026, 2027, and 208, respectively.
"We conservatively build in 15% YoY disbursements growth (Rs98.5bn) and 9.5% loan growth for F26 and 12% for F27."Morgan Stanley
The return on equity of Can Fin Homes is less than 15% in 2028 is attractive relative to many mid-and-small-sized non-banking financial companies for a second business. Valuation is attractive in this context, the brokerage said.
Can Fin Homes Q2 Earnings Key Highlights (YoY)
Net Profit rose 19% at Rs 251 crore versus Rs 211 crore
NII rose 19% at Rs 404 crore versus Rs 339 crore
Can Fin Homes share price rose 2.56% to Rs 895.85 apiece. It erased gains to trade 0.04% down at Rs 838 apiece as of 2:37 p.m., as compared to 0.04% advance in the NSE Nfity 50 index.
The stock declined 2.50% in 12 months, and 10.57% on the year-to-date basis. The relative strength index was at 69.84.
Out of 21 analysts tracking the company, 18 maintain a 'buy' rating, three recommend a hold, according to Bloomberg data. The average 12-month consensus price target implies an upside of 10.1%.
