Home First Finance
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Home First Finance Company is positioned for sustained growth, with management targeting a 25% increase in assets under management (AUM) for FY27, driven by a robust digital-first strategy and disciplined credit underwriting. The company's focus on the affordable housing segment, supported by rising customer incomes and aspirations, is expected to enhance revenue growth and maintain stable profit margins. Despite facing competitive pressures and potential execution risks in co-lending, management's commitment to operational efficiency through technology integration and strategic market expansion in high-potential regions like Uttar Pradesh and southern states underpins Vista's positive financial outlook. The affordable housing finance sector's growth, bolstered by government initiatives and urbanization trends, aligns with Home First's strategic priorities, providing a favorable backdrop for achieving its targets. However, watchpoints include potential regulatory changes and economic fluctuations that could impact consumer confidence. Overall, Vista anticipates a fair valuation with an expected upside of approximately 29%, reinforcing the company's strong market position and growth trajectory over the next 12-24 months
Why We Like This Stock
- Management's target of 25% AUM growth reflects strong demand in the affordable housing segment
- The integration of technology and AI enhances operational efficiency and underwriting processes
- Stable profit margins and a disciplined approach to credit underwriting support long-term profitability
Things To Watch Out For
- Intensifying competition in the affordable housing finance sector may pressure yields
- Execution risks in the co-lending portfolio could impact growth momentum
- Potential regulatory changes and economic fluctuations pose risks to consumer confidence
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 654 | 820 | 1,123 | 1,208 | 1,426 |
| Profit Before Tax (Cr.) | 400 | 502 | 708 | 817 | 994 |
| PBT Margin | 61.2% | 61.2% | 63.0% | 67.6% | 69.7% |
| Net Profit (Cr.) | 306 | 388 | 541 | 622 | 757 |
| Earnings Per Share | 29.3 | 37.1 | 51.8 | 59.5 | 72.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Kotak Securities | ▲ Buy | 1,530 | 08-Sep-2026 |
| ICICI Securities | ▲ Buy | 1,450 | 29-Jul-2026 |
| IDBI Capital | ▲ Buy | 1,400 | 29-Jul-2026 |
| Motilal Oswal | ▲ Buy | 1,425 | 29-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 1,385 | 29-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 1,650 | 13-Jul-2026 |
| Investec | ▲ Buy | 1,450 | 30-Jun-2026 |
| Moneycontrol | ▲ Overweight | nan | 16-Jun-2026 |
| HDFC Securities | ▼ Reduce | 1,200 | 08-May-2026 |
| Bernstein | ▲ Buy | 1,430 | 08-Apr-2026 |
Company Overview
Show Company Profile
Home First Finance Company India Limited operates as a housing finance company in India. The company offers home, self-construction, renovation, mortgage, shop, and resale, as well as top-up loans. It also provides insurance loan products and loans through mobile applications. The company serves salaried professionals, self-employed individuals, informal earners, and small business owners, as well as corporates. Home First Finance Company India Limited was incorporated in 2010 and is headquartered in Mumbai, India.