Home First Finance Q3 Results Review - Inline; Growth Guidance Steady: Systematix

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..Systematix Report.Home First Finance Company Ltd.'s Q3 FY24 operational performance was in-line with our estimates. Higher other income compensates for lower spreads. Net interest income/ operating profit came in at Rs 1.34 billion/ 1.09 billion versus estimate of Rs1.40 billion/ 1.07 billion. NII reported healthy growth of 21% YoY (2% QoQ) at Rs 1.3 billion aided by 34% YoY growth in asset under management..The operating performance during the quarter was healthy despite contraction in margins (~30 basis points QoQ decline) aided by higher assignment income and treasury income (other income grew 137% YoY). Opex to AUM ratio was steady QoQ at 2.8%. Asset quality stood steady QoQ with gross stage-III/net stage III at 1.7%/1.2%. Provisioning coverage ratio on stage-III assets was largely steady at ~30%. While one plus days past dues remained steady QoQ at 4.5%, bounce rate increased to 15.1% from 14.2% in Q2 and further increased to 15.3% in January-24. Strong growth in business with healthy operational efficiency should aid its earnings and return ratios ahead..We estimate 33% compound annual growth rate in AUM to drive 26% CAGR in earnings over FY23-FY26 with return on assets/ return on equity of ~3%/~18%. We retain our 'Buy' rating and increase our target price of Rs.1,200 (from Rs.1,100) as we rollover to March-26, valuing the company at ~3.75 times FY26E book value..Click on the attachment to read the full report:.HUL Q3 Results Review - No Signs Of Volume Recovery; Downgrade To 'Reduce': 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.

Home First Finance Q3 Results Review - Inline; Growth Guidance Steady: Systematix

Strong growth in business with healthy operational efficiency should aid its earnings and return ratios ahead.

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