DINESH

Can Fin Homes

Industry: HFCs
Latest CMP 719
Today's Change ▼ -1.71%
52-Week High / Low 942 | 719
Price Date: 30-Sep-2026
Recommendation Sell
Target Price 830
Expected Upside 7.4%
Forecast Horizon 2 Years
Historical CAGR 26.4%
1,000 Invested 01-Oct-2006
Today's Value 107,943
Investment Period 20 Years

Stock Snapshot

Post Results Return
-10.3%
Negative Re-rating
1-Year Target Price
797
2-Year Target Price
830
52-Week High / Low
942 / 719
20-Day Return
-10.7%
Market Cap (Cr.)
9,565
Current PE
10.1
P/BV Ratio
1.6
Dividend Yield
1.2%
Industry PE
13.7

Price Performance

Vista Outlook

Basis of our Recommendation

Can Fin Homes is navigating a complex landscape marked by robust disbursement growth and a strategic IT transformation aimed at enhancing operational efficiency. Management's commitment to a 14% AUM growth target, alongside a focus on maintaining conservative lending standards, positions the company favorably despite challenges from elevated prepayment rates and competitive pressures. The ongoing rollout of a new technology platform is expected to improve turnaround times and support margin expansion, aligning with Vista's forecast of improving profitability. However, the company faces headwinds from potential regulatory changes and economic fluctuations that could impact housing demand. Overall, while the revenue outlook suggests contraction, the anticipated margin improvements and strong asset quality provide a buffer against market volatility. Over the next 12-24 months, key opportunities include expanding into new geographic markets and leveraging technology for customer engagement, while watchpoints include managing competitive pressures and maintaining NIMs amidst rising borrowing costs

👍 Why We Like This Stock

  • Management's focus on a 14% AUM growth target supported by strong disbursement momentum across various segments
  • The ongoing IT transformation is expected to enhance operational efficiency and improve margins
  • Stable asset quality and a commitment to conservative lending standards provide a solid foundation for future growth

⚠ Things To Watch Out For

  • Elevated prepayment rates and competitive pressures may hinder AUM growth and customer retention
  • Potential regulatory changes could impact lending practices and profitability
  • Economic downturns may affect housing demand, posing risks to revenue stability

Key Parameters

Balance Sheet Strength
Elite Balance Sheet
Market Share
Stable
Industry Outlook
Improving
Analyst View
Strong Buy
Dividend History
Consistent
FII Holdings
Stable

Financial Snapshot

View Technicals Analysis →
Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 1,291 1,391 1,654 1,448 1,528
Profit Before Tax (Cr.) 958 1,077 1,304 1,230 1,263
PBT Margin 74.2% 77.4% 78.8% 85.0% 82.6%
Net Profit (Cr.) 734 823 1,032 970 996
Earnings Per Share 55.2 61.9 77.6 72.9 74.9

Analyst Recommendations

Broker Recommendation Target Price Date
Emkay Global ► Add 1,000 21-Jul-2026
Motilal Oswal ► Neutral 940 21-Jul-2026
Prabhudas Liladhar ▲ Buy 1,075 21-Jul-2026
Axis Securities ▲ Buy 1,100 20-Jul-2026
Morgan Stanley ▲ Overweight 1,055 20-Jul-2026
HDFC Securities ▲ Buy 1,040 28-Apr-2026
Consensus Recommendation ▲ Strong Buy
Consensus Target 1,035
Coverage 6 Analysts
Analysts' Viewpoint
Can Fin Homes is leveraging a new core technology platform to enhance operational efficiency and support its growth trajectory, with plans to open 28 new branches in FY27. Analysts highlight the company's focus on achieving 14% AUM growth, supported by strong housing demand and broad-based disbursement growth across regions. However, elevated portfolio attrition and competitive pressures from private HFCs and NBFCs pose challenges to loan growth. The transition to a quarterly reset has increased prepayments, impacting AUM growth, but management remains optimistic about maintaining NIMs and achieving disbursement targets.

Company Overview

Show Company Profile

Can Fin Homes Limited provides housing finance services primarily to first-time homebuyers and professionals in India. The company's products portfolio comprises housing loans, such as individual housing, commercial housing, composite housing, Composite housing loans. Layout loan, Flat under Construction TPA Basis, IHL Cash Salary, and affordable housing loans; non-housing loans, including site, mortgage, builder, line of credit, personal, CFHL top-up, I-secure loans, loans against rent receivables, loans for commercial properties and children education, Flexi LAP, loan for pensioners, and rooftop solar loan scheme. It also offers fixed and cumulative deposits. The company was incorporated in 1987 and is headquartered in Bengaluru, India.