Check Before You Invest : Can Fin Homes Ltd

BSE: 511196 NSE: CANFINHOME ISIN: INE477A01020

| Sector: BFSI | Industry: Finance - Housing

Snapshot

Q.1 Which industry/sub-sector does Can Fin Homes Ltd belong to?

Can Fin Homes Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.

Q.2 Is Can Fin Homes Ltd a good quality company?

Can Fin Homes Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Can Fin Homes Ltd undervalued or overvalued?

Can Fin Homes Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Can Fin Homes Ltd a good buy now?

Can Fin Homes Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Can Fin Homes Ltd?

Can Fin Homes Ltd Operating Income growth is 10.08% for FY-2025, which is below its 5-year CAGR of 13.82%, indicating slower growth.

Q.2 Return on Assets of Can Fin Homes Ltd?

Can Fin Homes Ltd Return on Asset is 2.2%, which is above its 5-year historical median of 2.1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	22.1	22.6
PPOP%	6.05	18.31
RoA%	2.2	2.1

Q.3 Return on Equity (ROE) of Can Fin Homes Ltd?

Can Fin Homes Ltd Return on Equity is 18.2% for FY-2025, which is below its 5-year historical median of 18.5%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Can Fin Homes Ltd?

Can Fin Homes Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 6.05% for FY-2025, which is below its 5-year median(18.31%), indicating decreasing margins.

Q.5 Net Profit Margin of Can Fin Homes Ltd?

Can Fin Homes Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 22.1% for FY-2025, which is below its 5-year median( 22.6%), indicating decreasing margins.

Q.6 Total Asset growth of Can Fin Homes Ltd?

Can Fin Homes Ltd Total Asset growth is 10.69% for FY-2025, which is below its 5-year CAGR of 14.25%, indicating slower growth.

Q.7 Capital Adequacy ratio of Can Fin Homes Ltd?

Can Fin Homes Ltd Capital Adequacy ratio (CAR) is 25.1% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Q.8 Asset Quality of Can Fin Homes Ltd?

Can Fin Homes Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 0.87% for FY-2025, which is above its 5-year median 0.82%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.46% which is above its 5-year median( 0.42%), indicating deteriorating asset quality.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Can Fin Homes Ltd?

Promoters hold 29.99% of the Can Fin Homes Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Can Fin Homes Ltd vs Industry Peers?

Can Fin Homes Ltd AUM CAGR is 14.25%, compared to the 5-year industry median CAGR of 4.02%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Can Fin Homes Ltd vs industry peers

Can Fin Homes Ltd profit metrics are in line with the industry median level of 10.39%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	22.1	17.47
PPOP%	6.05	11.85
RoA%	2.2	1.85

Q.3 Operating efficiency of Can Fin Homes Ltd vs industry peers?

Can Fin Homes Ltd ROCE (8.5) is below the industry median of (8.9); while the current ROE (18.5) are above than the 5-year average Industry ROE (13.55). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	22.1	17.47
PPOP%	6.05	11.85
RoA%	2.2	1.85
ROCE%	9.4	8.9
ROE%	18.2	13.55

Valuation & price assessment

Q.1 Stock return of Can Fin Homes Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 13.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	13.4%	8.3%	11.3%	20.1%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	10.6	14.10	14.89
Price to Book	1.92	2.40	1.26
Price to Sales	2.73	3.12	3.55
EV to EBITDA	10.7	13.41	10.70

Q.4 Valuation ratios of Can Fin Homes Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.92% is lower than its historical median of 2.40%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Can Fin Homes Ltd return on invested capital (ROIC) is 6.85% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

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