⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HOMEFIRST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | HOMEFIRST | Market Cap | 10,256 Cr. | Current Price | 984 ₹ | High / Low | 1,519 ₹ |
| Stock P/E | 20.7 | Book Value | 386 ₹ | Dividend Yield | 0.38 % | ROCE | 11.4 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,105 ₹ | DMA 200 | 1,153 ₹ |
| Chg in FII Hold | 0.83 % | Chg in DII Hold | -1.23 % | PAT Qtr | 140 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 33.2 | MACD | -43.8 | Volume | 13,73,642 | Avg Vol 1Wk | 6,63,949 |
| Low price | 839 ₹ | High price | 1,519 ₹ | PEG Ratio | 0.76 | Debt to equity | 2.40 |
| 52w Index | 21.4 % | Qtr Profit Var | 44.0 % | EPS | 49.4 ₹ | Industry PE | 14.1 |
📊 Core Financials
- Quarterly PAT rose from ₹132 Cr. to ₹140 Cr. (~6% sequential growth, ~44% YoY growth).
- ROE: 16.5% → decent profitability.
- ROCE: 11.4% → moderate capital efficiency.
- Debt-to-equity: 2.40 → high leverage, typical for housing finance companies.
- Dividend Yield: 0.38% → minimal shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 20.7 vs Industry PE 14.1 → trading at a premium.
- P/B Ratio: 2.55 (Current Price ₹984 / Book Value ₹386) → moderately expensive relative to assets.
- PEG Ratio: 0.76 → attractive, valuation supported by earnings growth.
- Intrinsic Value: Current price slightly above fair value, limited upside in near term.
🏢 Business Model & Competitive Advantage
- HomeFirst Finance operates in affordable housing finance, catering to underserved segments.
- Business model relies on lending to first-time home buyers, supported by government housing initiatives.
- Competitive advantage: Niche focus on affordable housing, strong growth potential in India’s urbanization story.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹900–₹950 (close to support levels, RSI at 33.2 indicates oversold zone).
- Long-Term Holding: Suitable for investors seeking exposure to housing finance growth, but high leverage adds risk.
✅ Positive
- Strong quarterly profit growth (~44% YoY).
- FII holdings increased (+0.83%), showing foreign investor confidence.
- PEG ratio (0.76) suggests valuation supported by earnings growth.
⚠️ Limitation
- High debt-to-equity ratio (2.40) increases financial risk.
- P/E ratio (20.7) higher than industry average (14.1).
- DII holdings decreased (-1.23%), showing reduced domestic institutional support.
📉 Company Negative News
- Stock trading below 50 DMA (₹1,105) and 200 DMA (₹1,153), indicating bearish momentum.
- MACD at -43.8 signals weak technical trend.
📈 Company Positive News
- Quarterly PAT increased from ₹132 Cr. to ₹140 Cr.
- FII holdings increased (+0.83%), reflecting foreign investor confidence.
🌐 Industry
- Housing finance industry PE at 14.1, lower than HomeFirst’s 20.7, showing relative overvaluation.
- Industry growth driven by affordable housing demand, government schemes, and urbanization.
🔎 Conclusion
- HomeFirst Finance is fundamentally stable with strong growth potential in affordable housing.
- High leverage and premium valuations pose risks, but PEG ratio indicates earnings support.
- Best strategy: Accumulate near ₹900–₹950 and hold long-term to benefit from India’s housing finance growth story.