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Buy Can Fin Homes; target of Rs 850: Sharekhan

Published on 29/04/2025 09:54 AM

Sharekhan's research report on Can Fin Homes

Q4 saw a pick-up in business momentum, as disbursements grew by 6.1% y-o-y/30.7% (y-o-y/q-o-q). AUM grew by 9.2%/2.9% (y-o-y/q-o-q). Asset quality remained broadly stable. Earnings were marginally higher than estimates driven by a lower effective tax rate. The management has guided for a disbursement growth of ~20% and loan growth of ~15% in FY26 as the e-khata issue is gradually resolving in Karnataka and the Telangana issue seems to be bottoming out as well. At CMP, the stock trades at 1.6x/1.4X its FY2026E/FY2027 BV.

Outlook

We maintain buy rating with an unchanged PT of Rs. 850 on the back of improving growth outlook. Valuations are reasonable.

For all recommendations report, click here

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Can Fin Homes - 29042025 - khan

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