CANFINHOME - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

Here’s an in-depth analysis of CANFINHOME—a specialized housing finance player with stable fundamentals and some valuation advantages 📋🏡

🧾 Core Financials Overview

Profitability Trends

Quarterly PAT dipped from ₹234 Cr. to ₹224 Cr.—a minor setback, but overall trend remains stable with a 12.1% quarterly variation.

EPS of ₹66.2 is solid for its price range, supporting decent earning power.

Return Metrics

ROE: 18.2% — strong, pointing to good shareholder return.

ROCE: 9.34% — slightly moderate, indicating room for improved capital efficiency.

Leverage & Liquidity

Debt to Equity: 6.92 🚨 — very high, typical of housing finance companies, but warrants close monitoring.

No direct cash flow data available, yet stable earnings suggest manageable internal funding.

📉 Valuation Metrics Breakdown

Metric Value Interpretation

P/E Ratio 11.2 Undervalued compared to industry PE of 20.2

P/B Ratio ~1.94 Attractive, trading close to book value

PEG Ratio 0.51 Healthy — growth at reasonable price

Dividend Yield 1.62% Better than average; adds income upside

Intrinsic Value Estimated ~₹800–₹850 Current price below fair value

🔍 The valuation setup leans toward undervalued, with solid EPS and low PE supporting buy-on-dips strategy.

🧬 Business Model & Competitive Edge

CANFINHOME operates in retail housing finance — benefiting from government housing push, tax incentives, and credit demand.

Strong franchise in Tier-II/III cities where competition is lower and growth is steady.

While heavily leveraged, its controlled NPA levels and housing-centric portfolio lend stability.

📉 Technical Overview & Entry Points

RSI at 33.5 — near oversold zone, indicating potential rebound.

MACD negative — bearish signal with price trend weakness.

Trading below DMA 50 (₹775) and DMA 200 (₹753) — shows short-term pressure.

🎯 Suggested Entry Zone

Ideal accumulation: ₹700–₹725

Deep value entry: ₹670–₹685 if further correction occurs

🕰️ Long-Term Holding Perspective

💼 Sound business fundamentals and fair valuation support multi-year holding.

⚠️ High debt warrants selective accumulation—ideal for growth-focused investors with higher risk tolerance.

🟢 Hold for 5–7 years horizon targeting gradual re-rating and price recovery.

Want me to benchmark this against PNB Housing, LIC Housing or Aavas Financiers? Happy to set up a peer table to sharpen your analysis 🔍📊

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