Check Before You Invest : Home First Finance Company India Ltd

BSE: 543259 NSE: HOMEFIRST ISIN: INE481N01025

| Sector: BFSI | Industry: Finance - Housing

Snapshot

Q.1 Which industry/sub-sector does Home First Finance Company India Ltd belong to?

Home First Finance Company India Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.

Q.2 Is Home First Finance Company India Ltd a good quality company?

Home First Finance Company India Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Home First Finance Company India Ltd undervalued or overvalued?

Home First Finance Company India Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Home First Finance Company India Ltd a good buy now?

Home First Finance Company India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Home First Finance Company India Ltd?

Home First Finance Company India Ltd Operating Income growth is 34.51% for FY-2025, which is above its 5-year CAGR of 30.86%, indicating faster growth.

Q.2 Return on Assets of Home First Finance Company India Ltd?

Home First Finance Company India Ltd Return on Asset is 3.5%, which is below its 5-year historical median of 3.7%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	24.97	26.88
PPOP%	24.42	33.54
RoA%	3.5	3.7

Q.3 Return on Equity (ROE) of Home First Finance Company India Ltd?

Home First Finance Company India Ltd Return on Equity is 16.8% for FY-2025, which is above its 5-year historical median of 13.6%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Home First Finance Company India Ltd?

Home First Finance Company India Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 24.42% for FY-2025, which is below its 5-year median(33.54%), indicating decreasing margins.

Q.5 Net Profit Margin of Home First Finance Company India Ltd?

Home First Finance Company India 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 24.97% for FY-2025, which is below its 5-year median( 26.88%), indicating decreasing margins.

Q.6 Total Asset growth of Home First Finance Company India Ltd?

Home First Finance Company India Ltd Total Asset growth is 27.74% for FY-2025, which is below its 5-year CAGR of 28.61%, indicating slower growth.

Q.7 Capital Adequacy ratio of Home First Finance Company India Ltd?

Home First Finance Company India Ltd Capital Adequacy ratio (CAR) is 32.8% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Home First Finance Company India Ltd?

Promoters hold 6.99% of the Home First Finance Company India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Home First Finance Company India Ltd vs Industry Peers?

Home First Finance Company India Ltd AUM CAGR is 28.61%, 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 Home First Finance Company India Ltd vs industry peers

Home First Finance Company India Ltd profit metrics are above the industry median level of 10.39%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	24.97	17.47
PPOP%	24.42	11.85
RoA%	3.5	1.85

Q.3 Operating efficiency of Home First Finance Company India Ltd vs industry peers?

Home First Finance Company India Ltd ROCE (10.3) is above the industry median of (8.9); while the current ROE (13.6) are above than the 5-year average Industry ROE (13.55). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	24.97	17.47
PPOP%	24.42	11.85
RoA%	3.5	1.85
ROCE%	11.4	8.9
ROE%	16.8	13.55

Valuation & price assessment

Q.1 Stock return of Home First Finance Company India Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 18.46% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	18.5%	17.6%	-2.7%

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	24.42	30.80	14.89
Price to Book	2.91	3.90	1.26
Price to Sales	6.64	8.71	3.55
EV to EBITDA	13.85	17.55	10.70

Q.4 Valuation ratios of Home First Finance Company India Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.91% is lower than its historical median of 3.90%, 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?

Home First Finance Company India Ltd return on invested capital (ROIC) is 8.24% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

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