Can Fin Homes Ltd - Stock Valuation and Financial Performance

BSE: 511196 | NSE: CANFINHOME | Finance - Housing | Small Cap

Can Fin Homes Share Price

606.50 -4.70 -0.77%
as on 14-Feb'25 16:59

DeciZen - make an informed investing decision on Can Fin Homes

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

Can Fin Homes stock performance -

mw4me loader
P/E Ratio (SA):
9.70
Market Cap:
8,075.8 Cr.
52-wk low:
596.7
52-wk high:
951.5

Is Can Fin Homes Ltd an attractive stock to invest in?

1. Is Can Fin Homes Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Can Fin Homes Ltd is a good quality company.

2. Is Can Fin Homes Ltd undervalued or overvalued?

The key valuation ratios of Can Fin Homes Ltd's currently when compared to its past seem to suggest it is in the Undervalued zone.

3. Is Can Fin Homes Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Can Fin Homes Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Can Fin Homes:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Can Fin Homes Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Operating Income (₹ Cr.)8161,0831,3531,5181,7272,0302,0181,9882,7423,5233,807
YoY Gr. Rt. %-32.7%24.9%12.2%13.8%17.6%-0.6%-1.5%37.9%28.5%-
Adj EPS (₹ ) 6.511.817.721.522.328.334.335.446.756.462.5
YoY Gr. Rt. %-82.1%49.8%21.6%3.7%26.7%21.2%3.3%31.9%20.9%-
BVPS (₹ )586680.9111.7133.8161.5196230.3273.9326.2369
YoY Gr. Rt. %-13.8%22.6%38.1%19.9%20.6%21.4%17.5%18.9%19.1%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)1.21.7221.71.92.11.922.20

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income17.6%15.3%20.4%28.5%
Adj EPS27.2%20.4%18.1%20.9%
BVPS21.2%19.5%18.5%19.1%
Share Price 17.4% 3.5% -0.5% -24.8%

Key Financial Ratios

RATIOS \ YEARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000.20.40.50000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 18.420.718.519.116.422.30000-
Margins
Net Profit Margin (%)10.614.517.418.917.218.522.623.722.721.321.9
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)14.119.124.122.318.219.119.216.618.518.816.9

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 18.00%

Total Income has increased 20.41 CAGR in last 3 years

Net Profit has increased 18.07 CAGR in last 3 years

Total income growth is good in last 4 quarters

No data to display

Latest Financials - Can Fin Homes Ltd.

Standalone Consolidated
TTM EPS (₹) 62.5 -
TTM Sales (₹ Cr.) 3,807 -
BVPS (₹.) 369 -
Reserves (₹ Cr.) 4,887 -
P/BV 1.64 -
PE 9.70 -
From the Market
52 Week Low / High (₹) 596.65 / 951.45
All Time Low / High (₹) 2.02 / 951.45
Market Cap (₹ Cr.) 8,076
Equity (₹ Cr.) 26.6
Face Value (₹) 2
Industry PE 15.8

Management X-Ray of Can Fin Homes:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Can Fin Homes: Q3FY25 Result Update - 27 Jan 2025

* Excluding Management overlay

* Excluding impact of regrouping of provision for Ambala fraud

Key Highlights – Growth Challenges Persist

Advances and Disbursement Growth:

  • New Approvals: Grew marginally by 1% YoY to Rs. 2,075 crore but declined 21% QoQ from Rs. 2,617 crores.

  • Disbursements: Remained flat YoY at Rs. 1,879 crore but fell 21% QoQ from Rs. 2,381 crores, affected by lower activity in key markets, primarily due to delays in property registrations in Karnataka caused by the new e-Khata system and political changes in Telangana.

  • Outstanding Loan Book: Expanded by 9% YoY to Rs. 37,155 crore from Rs. 34,053 and 2% QoQ from Rs. 36,591 crores, reflecting steady growth despite external challenges.

Profitability:

  • Net Interest Income (NII): Increased 5% YoY to Rs. 345 crore from Rs. 329 crores and rose 1% QoQ from Rs.340 crores.

  • Operating Profit: Grew marginally to Rs. 291 crore (both YoY and QoQ).

  • Profit After Tax (PAT): Rose 6% YoY to Rs. 212 crore from Rs. 200 crores and remained flat QoQ.

Asset Quality:

  • NPA: Inched up to 0.92% from 0.91% YoY and 0.88% QoQ, , while the Net NPA Ratio slightly increased to 0.50% from 0.49% YoY and 0.47% QoQ reflecting slight deterioration in asset quality, but within limits.

Margins and Efficiency:

  • Net Interest Margin (NIM): Declined by 19 bps to 3.73% YoY and 2 bps QoQ, showing improvement due to a better loan mix and reduced borrowing costs.

  • Yield on Loan Portfolio: Improved by 28 bps YoY to 10.19% and by 7 bps QoQ, driven by higher contributions from self-employed and LAP segments.

  • Cost of Borrowing: Increased by 16 bps YoY to 7.51% but fell 5 bps QoQ, supported by a shift to lower-cost borrowings.

  • Cost-to-Income (C/I) Ratio: Rose significantly by 221 bps to 16.92% from 14.71% YoY, but declined 18 bps QoQ, attributed to investments in IT and operational enhancements and in line with management guidance of 17-18% for FY25.

Capital and Leverage:

  • Return on Average Assets (RoA): Declined by 8 bps YoY to 2.25% and 4 bps QoQ, showcasing resilience in profitability amidst higher costs.

  • Return on Average Equity (RoE): Fell by 181 bps YoY to 17.55% and 44 bps QoQ, driven by improved spreads.

  • Debt-to-Equity Ratio: Improved to 7.1 from 7.6 in Q3FY24 and 7.2 in Q2FY25, reflecting a stronger financial position.

Canfin Homes Ltd: News about Fraud of Rs. 38.5 Cr by employees - 26 Jul 2023

What has happened?

Canfin homes today reported to the exchanges that employees at its Ambala branch had committed a fraud of nearly Rs 38.53 Cr by transferring funds to different personal bank accounts. Management in their call with analysts clarified that this was done by misuse of cheque signing powers given to the managerial level employees of the branch.

There was no asset against which such disbursal was done and thus the amount of Rs 38.53 Cr (~20-25% of Quarterly PAT) is to be provisioned in the coming quarter. Company reported that this issue was out of scope of quality checks done after accusations of fraud last quarter.

The fraud happened over a period of more than a year wherein about 200 transactions were done with average size of ~Rs. 20 lakhs. This high amount of transfer of funds was more than 40% of the size of the branch portfolio.

Management carried the process of reconciliation for all the branches for previous 2 years and did not find this issue anywhere else. Centralised disbursement process was to be implemented so that this issue should not have occurred in the first place, it will be completed in coming months.

Can Fin Homes: Q2FY23 Result Update - 21 Oct 2022

Market Cap 7,024 Cr
CMP 528
P/B  1.9xFY23

Results

(INR Cr)

YoY Growth

Comments

Advances

28,823

22.21%

Growth in absolute quantum of disbursements.

Net Interest Income

251.17

30.97%

NIM declined by 5 bps to 3.55% due to no rate increase

Net Profit

141.17

14.62%

Although rise in Profit on yearly basis, declined quarterly due to higher cost of borrowings (6.04%)

 

Key Highlights

  • Spreads declined by 15bps to 2.51% quarterly, because of the higher Cost of Funds, which increased by 25bps quarterly to 6.04% even asyields improved by 10bp quarterly to 8.55%, Can Fin Homes is not able to fully pass increase in cost.
  • Capital Adequacy Ratio at 23.65%, Company is planning to raise capital before Mar’23 to support highergrowth levels, this will help in increasing loan book.
  • Hiring process of the new MD&CEO has started and that it expects the new MD/CEO to assume office within the next 2-3 months. Likewise, CANF will also be looking to on-board a new CFO and CRO, suggesting that a completely new senior leadership team will assume office at the company within the next few months
  • Out of the restructured book, Rs.1 Cr forms part of 1-90 Days past due (DPD) and the company expects it to increase to a maximum level of Rs.32 Cr. However, on a net basis, it is not expected to affect NPA levels.
  • Asset quality improved as GNPA and NNPAimproved by 3bps & 5bps quarterly to 0.62% and 0.35%.

Management Outlook

  • Management guided for margins and spreads of 3.5% and 2.5% over the next few quarters, in the medium term, it expects 3.0% and 2.4%, respectively.
  • The management provided credit costs guidance of 0.12-0.14% in coming years (vs. current level of 0.04%), this will decrease profit margin.
  • Company guided for disbursement growth of 18-20% over the next 3-4 years.

Can Fin Homes: MD & CEO Girish Kousgi Resigns - 19 Sep 2022

Event: As perthe press release from Can Fin Homes, Girish Kousgi, the MD & CEO has resigned due to personal reasons. The date of cessation was not disclosed, as the filing suggested that it would be based on the "notice period". Kousgi will continue to function as the MD & CEO and discharge duties till the date of his relieving. The stock has fallen 7.5% from its opening price during the last hour of trading on Monday.

Kousgi joined Can Fin Homes as its MD & CEO in September 2019, and has held the position since the past 3 years. He has an overall experience of 18 years in banking and financial services. Before joining Can Fin Homes, he was the head of retail credit & risk at Tata Capital (between May 2018 and August 2019). Prior to this, he was the EVP & head risk - Bharat & Bharat Plus Banking at IDFC Bank (from October 2017 and April 2018). He has had multiple stints with ICICI Bank between 2000 and 2017. He was elevated as the Joint General Manager in April 2015, and held the position till September 2017.

Can Fin Homes Event Update– News about RBI probe due to detection of Fraud - 16 May 2022

What has happened?

The stock of Can Fin Homes has corrected ~30% from its peak as we write this note. According to the media reports, the whistleblower letter, sent at the end of December, addressed to RBI & National Housing Bank said there were irregularities at one of the branches. The fraud is claimed to be into 37 accounts and the amount is expected to be worth Rs. 3.9 Cr. Fake income tax return documents had been submitted for those accounts, according to the sources. However, the provision is said to have been made for the same.

Response from the management

The management has responded to this query in the conference call and media appearance. MD & CEO Mr. Girish Kousgi has said that there are no 'serious irregularities'. The clarification from the company says that the company has not received any such information from the regulator. And there are no specific or extraordinary events or information in respect of the company that may have a bearing on the price movement of the scrip.

Opinion for our Subscribers:

Can Fin Homes: Quarterly Result update - 04 May 2022

Can Fin Homes Ltd | Market Cap: 8,554 Cr

CMP 642 | P/E 16.6x FY23

 

Results:  Net Interest Income grew 28% and Profit before Tax & Provision grew 16% year on year. The Net Interest Margin improved to 4.15% (from 3.74% in previous quarter).

On a full year FY22 basis, the disbursement growth was 91% and NII growth was 2%.

Click here for 10 year X-ray

Key highlights

  • The loan book grew 21% to reach Rs.26,711 Cr.
  • 74% of the outstanding loans came from Salaried & Professionals and 92% were Housing Loans which is positive.
  • Asset quality improved as Gross NPA & Net NPA declined to 0.64% & 0.3% (vs Gross NPA & Net NPA of 0.91% & 0.61% in FY21).
  • Cost to income ratio has risen to 19.84% (vs 19% in FY21) which is a negative but it is supplemented by 15% growth in average business per employee and 21% growth in average business per branch.
  • The Board has revalidated approvals and authorisations for issue of Non-Convertible Debentures, on private placement basis. The size of issue is Rs.2,265 Crore. The issue is expected to happen in tranches and will complete till the date of the AGM for FY22.

Management Outlook

  • The company has strong outlook on growth both in disbursements and book. The company is targeting 18-20% disbursement growth. South contributed 67-68% of the loan-book.
  • The board had approved for raising NCDs upto Rs.4000 Crore in AGM held on Sept’21. Although the company is yet to decide on the terms and conditions of the Issue like timing of the Issue(s), size, number of securities, tenure, coupon etc.
  • Both spread and NIM expected to go up leading to better profitability. Long-term sustainable spread is expected to be 2.4%. Borrowing costs will start inching up and it expects the costs to increase by 1-1.25% over the next 4-6 quarters.
  • Over the next 3 years, LAP book will be growing at a much faster pace than home loans. The company plans to increase the proportion of LAP loans from 5% to 10% over the next three years.
  • Can Fin is comfortable with up to 8x leverage and it will be looking to raise equity capital. It plans to add 12-15 branches every year.

 

Key Ratios of Can Fin Homes

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Income8171,0841,3531,5221,7312,0302,0181,9892,7433,525
Interest Income8161,0831,3531,5181,7272,0302,0181,9882,7423,523
Other Income 1104400112
Expenditure 6808309841,0911,2621,5121,4011,3531,9192,567
Interest Expense 6117448849811,1691,3451,2091,1551,7022,232
Operating Expenses 526175838495111138162181
Provisions 17252527972816156154
Exceptional Items 0010000000
Profit Before Tax 137254370431470518618635824958
Taxes 5197135145173142162164203207
Profit After Tax 86157235286297376456471621751
Adjusted EPS (₹)6.511.817.721.522.328.334.335.446.756.4
Dividend Payout Ratio (%)22%17%11%9%9%7%6%8%8%11%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Equity Capital7718781,0761,4871,7822,1502,6103,0673,6474,344
Share Capital 27272727272727272727
Reserves 7458511,0501,4601,7562,1232,5833,0403,6214,317
Minority Interest0000000000
Long Term Borrowings5,5337,0928,25110,67613,11813,82212,55717,85722,49824,306
Current Liabilities 2,0302,7854,0503,5433,8055,0386,8626,9736,8767,886
Trade Payables0029344685
Short term borrowings1,4841,6263,0813,2403,7474,9036,6936,7456,5237,511
Other Liabilities-1,483-1,625-3,083-3,249-3,751-4,908-6,697-6,750-6,531-7,516
Total Liabilities 8,33410,75613,37915,70618,70521,01022,02827,89733,02236,536

Assets

Non Current Asset 8,23110,64112,95615,68518,28320,61422,00027,56532,70136,068
Loan Asset 8,20210,61212,90515,64418,23420,52621,89126,37831,19334,553
Other Non Current Asset 2929514149891081,1871,5081,515
Current Asset 1031154232142239528332321467
Current Investment0000000000
Other Current Asset1031154232142239528332321467
Total Assets 8,33410,75613,37915,70618,70521,01022,02827,89733,02236,536

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 53382-2,356-2,018-2,335-1,842-851-3,916-4,044-2,570
Cash Flow From Investing Activity -4-11-7-2-4-13-28-1,380-327-170
Cash Flow From Financing Activity -55-3712,3632,0192,7391,8265085,2994,3702,738
Net Cash Flow -600-1401-29-3722-1-1
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Operational & Financial Ratios

EPS (₹)32598821222834354756
DPS (₹)710102222346
BVPS (₹)290330404112134161196230274326

Performance Ratios

ROA (%)1.21.72.02.01.71.92.11.92.02.2
ROE (%)14.119.124.122.318.219.119.216.618.518.8
ROCE (%)10.810.810.810.09.69.48.57.28.49.3

Valuation Parameters

Price/Book(x)2.13.55.24.32.61.73.12.71.92.3

Can Fin Homes Ltd Stock News

Can Fin Homes Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Can Fin Homes on 14-Feb-2025 16:59 is ₹606.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 14-Feb-2025 16:59 the market cap of Can Fin Homes stood at ₹8,075.8.
The latest P/E ratio of Can Fin Homes as of 14-Feb-2025 16:59 is 9.70.
The latest P/B ratio of Can Fin Homes as of 14-Feb-2025 16:59 is 1.64.
The 52-week high of Can Fin Homes is ₹951.5 and the 52-week low is ₹596.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Can Fin Homes is ₹3,807 ( Cr.) .

About Can Fin Homes Ltd

Can Fin Homes Ltd is one of the top players in the housing finance sector, in the country. The Company has completed many successful years of operation in the field of home finance and has a renowned history of making profits and paying dividends continuously, since inception in 1987.

The company has several branches and satellite offices linked to the Registered Office at Bangalore through a core banking platform. Being a south based company, 70% of its branches are located in southern India.

Since its inception in 1987, the company continues to promote home ownership across the country with the motto of friendship finance and good service. The company has been progressively working towards its vision of sustaining high asset quality, business growth and favourable profit margins.

Business area of the company

Can Fin Homes is a Housing Finance Company offers finance for construction of a house, loan for the purchase of a flat or house, finance for the acquisition of a plot and construction of a house on the same. Under the composite housing loan scheme; it offers loan for the extension of existing house and loan towards the repairs, renovation and upgradation of a house or flat. Can Fin also provides offers fixed deposit, cumulative deposit, fixed deposit scheme for senior citizens, cumulative deposit scheme for senior citizens, Canfin Trust Fixed Deposit scheme and Canfin Trust Cumulative Deposit scheme. 

Milestones

  • 1987: 1st branch of CFHL inaugurated at Jayanagar, Bangalore on 26th Dec
  • 1988: Opened fist branch outside South India at Delhi
  • 1991: The company’s loan book size crossed Rs 100 crore
  • 2012: Completed 25 Years
  • 2012: Disbursements crossed Rs 1000 crore
  • 2012: 50th Branch of Can Fin opened at NCR-Pitampura
  • 2013:  Migrated to CBS platform (Integrated Business Suite) Loan Book size crossed 10,000 crore
  • 2014: Operating Profit crossed Rs 100 crore
  • 2014: 100th Branch of Can Fin at Begur, B’lore inaugurated on 5th July
  • 2014: Opened first Satellite Office ISO) at Yelahanka (have 36 SOs now)
  • 2014: Received AAA Rating for loans/NCDs, Al for CP
  • 2015: Net Profit surpassed Rs.I00 crore mark
  • 2015: Raised Rs.276 crore capital under Rights Issue (March 2015)
  • 2015: Became a mid-cap stock (Rs 1000 crore mCap)
  • 2015: Became a mid-cap stock (Rs 1000 crore mCap)
  • 2015: The company’s Share price crossed Rs 1000 on stock exchanges on 9th Oct 2015
  • 2016: Loon Book surpassed 10,000 crore mark on 31st Jan 2016
  • 2016: mCap crossed Rs 3000 crore as on 31st March
  • 2016: Opened 120th Branch & 50th Satellite Office during Apr-May
  • 2017: Can Fin Homes enters 30th year of its service to the society
  • 2017: Loan Book ahead of Rs.3000 crore (as at mar 17)
  • 2017: Fresh approvals crossed Rs.5000 crore matt for the FY
  • 2017: The HFC which was least affected by Demonetisation
  • 2017: Crossed outstanding clientele base of 1,00,000 for the first time
  • 2017: Opened 15 Affordable Housing Loan Centres (AHLC)
  • 2018: Runner-up in NBFC category FY17 by FE India's Best Banks Awards 2018
  • 2018: Foray into distribution of fife Insurance products through Corporate Agency
  • 2018: Can Fin Homes made its foray into the states of Punjab and West Bengal
  • 2019: Loan Book crossed the Rs.19003 crore mark
  • 2019: Foray into distribution of general insurance products through Corporate Agency
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