Home First Finance Q2 Results Review - Robust, Inline Quarter: Dolat Capital

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..Dolat Capital Report.Home First Finance Company India Ltd. reported a steady quarter with assets under management growth of 7% QoQ/34% YoY, in-line operating metrics (return on assets at 3.4%), and stable asset quality metrics. Yields benefitted from 35 bps PLR hike effective August-2024. Spreads were stable QoQ at 5.1% as yield improvement of 10 basis point was offset by a similar rise in CoF.Asset quality metrics remained steady with gross non-performing assets/Net non-performing assets at 1.7%/1.3% (stable QoQ) and contained early bucket delinquencies (1+/30+ days past due steady at 4.5% and 2.8% respectively). Low credit costs at 25 bps continued to benefit from the decline in stage-3 PCR (-350 bps YoY). Sequential growth was equally distributed across LAP and HL portfolios.We retain our estimates and maintain ‘Accumulate’ rating with revised target price of Rs 1250, valuing the HFC at 3.4 times Septemper-26E price to book value (from 3.3 times earlier), against return on assets/return on equity of 3.4%/18%. With low cyclicality in their earnings, HFCs could be key beneficiaries of normalizing credit environment (rising credit costs). Valuation factor in industry leading growth metrics, offset by relatively modest RoAs..Click on the attachment to read the full report:.Piramal Pharma Q2 Results Review - Operating Performance Above Estimate; FY25 Guidance Intact: Motilal Oswal.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.

Home First Finance Q2 Results Review - Robust, Inline Quarter: Dolat Capital

The company is ahead on technology versus peers, driving consistently superior growth metrics, says the brokerage.

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