Home First Finance's robust fundamentals, healthy return ratios (even as RoE might decline in the near term because of lower leverage) and superior execution relative to peers reinforce its position as a high-quality franchise in the affordable housing finance segment. The brokerage believes Home First has potential for scalable growth with strong risk-adjusted returns.
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
Home First Finance Company Ltd.'s disciplined cost management and a strong capital base should drive stable growth in the loan book. The company's robust fundamentals, healthy return ratios (even as RoE might decline in the near term because of lower leverage) and superior execution relative to peers reinforce its position as a high-quality franchise in the affordable housing finance segment.
We believe Home First has potential for scalable growth with strong risk-adjusted returns.
Home First currently trades at 2.8x FY27E book value per share (post money), which is at a slight discount to some of its peers in the AHF segment. Home First has a strong governance framework, a validated business model led by a seasoned and transparent management team, a robust AUM growth outlook (two-year CAGR of ~26%) and superior asset quality.
For a PAT CAGR of ~31% over FY25-27E and RoA/RoE of 3.8%/14.4% (post money), we reiterate our Buy rating with a target price of Rs 1,500 (premised on 3.2x Mar'27E P/BV).
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.
