HOMEFIRST - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | HOMEFIRST | Market Cap | 12,120 Cr. | Current Price | 1,162 ₹ | High / Low | 1,519 ₹ |
| Stock P/E | 24.4 | Book Value | 386 ₹ | Dividend Yield | 0.32 % | ROCE | 11.4 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 1,087 ₹ | DMA 200 | 1,130 ₹ |
| Chg in FII Hold | 4.90 % | Chg in DII Hold | -0.09 % | PAT Qtr | 140 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 62.6 | MACD | 33.6 | Volume | 2,38,943 | Avg Vol 1Wk | 1,88,094 |
| Low price | 894 ₹ | High price | 1,519 ₹ | PEG Ratio | 0.90 | Debt to equity | 2.40 |
| 52w Index | 42.9 % | Qtr Profit Var | 44.0 % | EPS | 49.4 ₹ | Industry PE | 15.1 |
Positive
- EPS of ₹49.4 reflects solid profitability.
- ROE (16.5%) indicates decent shareholder returns.
- Quarterly PAT growth of 44% shows strong earnings momentum.
- PEG ratio of 0.90 suggests fair valuation relative to growth.
- FII holdings increased (+4.90%), signaling strong foreign investor confidence.
- Stock trading above 50 DMA (₹1,087) and 200 DMA (₹1,130), confirming bullish sentiment.
Limitation
- High debt-to-equity ratio (2.40) raises leverage concerns.
- ROCE at 11.4% is modest, indicating limited capital efficiency.
- Dividend yield of 0.32% is negligible, limiting income appeal.
- Current price (₹1,162) below 52-week high (₹1,519), showing resistance at upper levels.
- P/E ratio of 24.4 above industry average (15.1), suggesting premium valuation.
Company Negative News
- Decline in DII holdings (-0.09%) shows reduced domestic institutional support.
- High leverage continues to be a structural risk.
Company Positive News
- Quarterly PAT improved to ₹140 Cr. from ₹132 Cr.
- Strong foreign investor inflows (+4.90%).
- EPS growth supports long-term fundamentals.
Industry
- Housing finance sector trading at industry P/E of 15.1, lower than Home First’s premium valuation.
- Sector growth driven by rising demand for affordable housing and government initiatives.
- Home First’s competitive advantage lies in its niche focus on affordable housing loans and strong distribution network.
Conclusion
Home First Finance shows decent fundamentals with strong EPS, PAT growth, and foreign investor support. However, high leverage, modest ROCE, and premium valuations limit attractiveness.
Entry Zone: Attractive accumulation range between ₹1,140–₹1,160 near support levels.
Long-Term Guidance: Suitable for investors seeking exposure to housing finance with growth potential. Expect moderate returns with upside tied to sector expansion and debt management.
Would you like me to also prepare a peer benchmarking overlay HTML (comparing Home First Finance with LIC Housing, Can Fin Homes, and PNB Housing) so you can see relative valuation and efficiency metrics side by side?