Can Fin Homes' loan growth continues to remain tepid since FY24, given several headwinds such as state-specific issues, moderation in demand, and limited expansion in distribution.
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.
Can Fin Homes Ltd.'s Q2 FY26 earnings were ahead of our estimates, largely due to higher-than-expected net interest margins (4%) and muted credit costs (3bps).
NIMs reflated sharply, driven by lower cost of funds (-30bps QoQ) due to re-pricing of bank borrowings, while transmission on the asset side remained limited (25bps during FY26). However, AUM/disbursements growth remained tepid (+8.4%/+6.9% YoY) amidst moderation in overall housing demand and protracted issues in Karnataka and Telangana.
While Can Fin Homes remains upbeat about loan growth and margin prospects, led by branch additions (14 added in H1 FY26), product and customer diversification (loan against property, self-employed non-professional segment, etc.), and increase in share of direct sourcing (currently at ~7%), tepid loan growth remains a key monitorable for any rerating.
We revise our FY26/FY27E earnings estimates for higher NIMs offset by higher opex and maintain Buy with a revised RI-based target price of Rs 915 (implying 1.7x Sep-27 adjusted book value per share).
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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
