Can Fin Homes Q3 Results Review - Closer Eye On Margin Going Ahead: Yes Securities
Can Fin Homes’ Q3 PAT came inline at Rs 1.52 bn, with 3% NII miss being made-up by lower-than-expected credit cost.
BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Yes Securities Report
Can Fin Homes Ltd.’s Q3 FY23 profit after tax came inline at Rs 1.52 billion, with 3% net interest income miss being made-up by lower-than-expected credit cost. Disbursements, portfolio run-off and loan book growth largely met expectations. Key takeaways of this quarters’ performance were-
further acceleration in self employed, non professionals home loan growth (book grew by 22% YoY, a significant improvement from 8% YoY a year back),
more-than-expected compression in net interest margin/spread, and
benign credit cost underpinned by sustained strong asset quality trends.
Can Fin Homes expects continuance of sturdy loan growth with controlled balance transfer out, and stable-to-improved margins in the medium term.
We marginally cut FY24/25 earnings estimates making some downward adjustment to growth and net interest margins.
We however see company delivering 1.8-19% return on asset/16-17% return on equity over next couple of years and continue to believe that investment risk-reward is favorable at 1.4 times FY25 price/adjusted book value.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.