CANFINHOME - Investment Analysis

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

Investment Rating: 4.1

📊 Fundamental Analysis of Can Fin Homes Ltd (CANFINHOME)

Can Fin Homes is a well-established housing finance company with a strong track record of profitability and growth

ROE (18.2%) & ROCE (9.34%): Solid return on equity, though ROCE is modest due to high leverage.

Debt-to-Equity (6.92): High, typical for NBFCs, but manageable given stable asset quality.

PEG Ratio (0.51): Attractive valuation relative to earnings growth.

EPS (₹66.2): Strong earnings per share, supporting long-term value.

Dividend Yield (1.62%): Reasonable for a growth-oriented NBFC.

📈 Technical & Valuation Insights

Current Price: ₹740

52-Week Range: ₹558 – ₹952

DMA 50 / DMA 200: ₹775 / ₹753 — trading below both, indicating short-term weakness

RSI (33.5): Near oversold zone

MACD (-11.9): Negative, confirming bearish momentum

Stock P/E (11.2) vs Industry P/E (20.2): Undervalued

🟢 Ideal Entry Price Zone

Based on valuation and technical indicators

₹690 – ₹720: Accumulation zone near support and historical buy levels

₹660 – ₹680: Deep value zone if broader market corrects

Avoid chasing above ₹800 unless supported by strong quarterly results.

📈 Long-Term Outlook

Price Targets

2025: ₹833 – ₹915

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2026: ₹1,062

2029: ₹1,220

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Growth Drivers

Strong loan book expansion

Technology transformation for operational efficiency

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Stable asset quality with low NPAs

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Risks

High leverage

Management transitions

Competitive pressure from larger HFCs

🛑 Exit Strategy (If Already Holding)

If you're already invested

Holding Period: 3–5 years to capture full housing finance cycle

Exit Triggers

ROE drops below 15% for 2+ quarters

Net NPA rises above 1%

Price exceeds ₹950 without EPS growth — consider partial profit booking

Trailing Stop-Loss: ₹690 to protect downside

🧠 Final Verdict

Can Fin Homes is a value-driven housing finance stock with strong fundamentals and attractive valuations. Ideal for accumulation near ₹690–₹720 with a 3–5 year horizon. If holding, stay invested and monitor quarterly earnings and asset quality metrics closely.

Would you like a side-by-side comparison with peers like LIC Housing Finance or PNB Housing to evaluate alternatives?

1

hdfcsky.com

2

bing.com

3

bing.com

4

www.screener.in

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