Can Fin Homes Q3 Results Review - Strong Guidance On Loan Growth But Execution Is Vital: Motilal Oswal

"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..Motilal Oswal Report.Can Fin Homes Ltd.’s Q3 FY24 profit after tax grew ~32% YoY to ~Rs 2 billion (inline). Net interest income grew 31% YoY to ~Rs 3.3 billion (inline). 9M FY24 PAT rose 19% YoY to ~Rs 5.4 billion. Opex grew ~13% YoY and declined ~6% QoQ to Rs 494 million because of the absence of annual incentives and one-off process enhancement expenses during the quarter. Pre-provision operating profit grew 35% YoY to Rs 2.9 billion (in line).  Repricing of the last tranche of loans resulted in a ~10 bp QoQ improvement in yields. With cost of fund broadly stable QoQ, net interest margin expanded ~5 bp to ~3.7%. We model NIM of 3.8%/3.7%/3.6% in FY24/FY25/FY26. The management expects an ambitious compound annual growth rate of ~20% in loans over the next four years, aided by-lead originations from digital channels,branch expansions and corresponding improvements in productivity, andtransition to higher ticket-size home loans. We model an assets under management/PAT compound annual growth rate of 15%/16% over FY23-26E with return on asset/return on equity of 2.1%/~18% in FY26. .Can Fin Homes, in our view, is a robust franchise with strong moats on the liability side. However, we await a recovery in loan growth and early signs of execution on loan growth guidance before turning constructive on the stock. At 1.6 times March-26E price/book value, we believe valuations largely price in the positive factors. Maintain Neutral with a target price of Rs 815 (1.8 times March-26E book value)..Click on the attachment to read the full report:.Home First Finance Q3 Results Review - Robust Growth; Yields Continue To Be Under Pressure: Dolat Capital.DISCLAIMERThis 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."

Can Fin Homes Q3 Results Review - Strong Guidance On Loan Growth But Execution Is Vital: Motilal Oswal

Earnings inline; sequential expansion in net interest margin but gross stage-III up ~15 bp QoQ

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Can Fin Homes Q3 Results Review - Strong Guidance On Loan Growth But Execution Is Vital: Motilal Oswal

Earnings inline; sequential expansion in net interest margin but gross stage-III up ~15 bp QoQ

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