CANFINHOME - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.3

📈 CANFINHOME is a strong swing trade candidate with solid fundamentals, bullish technicals, and attractive valuation. Entry near ₹840 is optimal. If already held, consider exiting around ₹880–₹895.

📈 Positive

• 📊 ROE of 18.2% and ROCE of 9.34% reflect efficient capital deployment.
• 📈 MACD at 24.1 and RSI at 66.8 indicate strong bullish momentum.
• 📈 Trading above DMA 50 (₹805) and DMA 200 (₹769) confirms short-term strength.
• 📈 Quarterly PAT improved from ₹224 Cr. to ₹251 Cr. (↑12%), showing earnings growth.
• 💸 Stock P/E of 12.4 vs industry average of 17.7 suggests undervaluation.
• 📈 PEG ratio of 0.56 indicates attractive growth relative to valuation.

⚠️ Limitation

• 📉 DII holding declined by 0.65%, showing reduced domestic institutional sentiment.
• 📉 Volume below average (1.47L vs 2.67L), suggesting subdued participation.
• 📉 Debt-to-equity ratio of 6.61 is high, typical for NBFCs but worth monitoring.

📉 Company Negative News

• 📉 Analysts flagged concerns over rising cost of funds and competitive pressure in the housing finance segment.

📈 Company Positive News

• 📈 CANFINHOME reported strong Q2 earnings with 18.9% profit growth and stable asset quality.
• 📈 Management expects continued growth driven by affordable housing demand and branch expansion.

🏠 Industry

• 🏠 The housing finance sector is supported by government incentives, urbanization, and rising home ownership.
• 📊 Industry P/E of 17.7 reflects moderate valuation across NBFC peers.

✅ Conclusion

• 📈 CANFINHOME is a strong swing trade candidate with bullish technicals and attractive valuation.
• 📉 Optimal entry price: ₹840–₹845 (on pullback near support zone).
• 📈 Exit target: ₹880–₹895 (near recent high and psychological resistance).
• 📌 Watch for RSI nearing 70 and MACD flattening for signs of trend exhaustion.

I can compare CANFINHOME’s setup with other housing finance stocks to help refine your swing strategy.