Can Fin Homes Q2 Results Review - Inline; Higher Margins Offsets One Off Provisioning: Systematix

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Can Fin Homes Ltd.’s Q2 FY24 net interest income was ahead of estimates, on the back of 32 basis points QoQ expansion in net interest margins to 3.8%, even as assets under management growth was moderate at 16% YoY (2.5% QoQ). However due to higher-than-expected provisioning, profit after tax was in-line at Rs 1.6 billion. Gross/ net stage-III assets increased slightly to 0.76%/0.43% from 0.63%/0.34% in Q1 due to slippages from restructured book. AUM/ disbursement growth was moderate due to negative sentiments on account of Ambala branch fraud and slightly tightened processes; however, management is confident to cover the shortfall in Q3 and Q4. We estimate a 19% compound annual growth rate in Can Fin Homes’ AUM to deliver 17% CAGR in earnings over FY23‐25E. We expect the return on asset/ return on equity to remain largely stable at ~2.0%/ 18% over FY24/25 as lower margins on higher ticket loans to get offset by repricing benefit on existing book. Key risks: Inflation pressure might impact the demand for home loans..Click on the attachment to read the full report:.Bandhan Bank Q2 Results Review - Weak Quarter; Growth To Revive In Seasonally Strong H2: Motilal Oswal .DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Can Fin Homes Q2 Results Review - Inline; Higher Margins Offsets One Off Provisioning: Systematix

Disbursement and AUM growth guidance maintained at 18-20% YoY.

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Can Fin Homes Q2 Results Review - Inline; Higher Margins Offsets One Off Provisioning: Systematix

Disbursement and AUM growth guidance maintained at 18-20% YoY.

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