YES Securities' research report on CAN FIN Homes
Can Fin delivered a 3%/5%/6% NII/PPOP/PBT beat aided by 1) healthy originations (up 30% qoq), 2) stabilized loan transfers (BT Out at ~Rs1.1bn; ann. portfolio run-off rate at 14%), 3) sustained back-book repricing (calculated PY improvement of 30bps qoq; reinstatement of discounts on 1st anniversary), 4) benign NPL trends (negligible net slippages) and 5) marginal credit cost (adjusted for migration to ECL provisioning).
Outlook
However, we still see Can Fin delivering avg 1.9% RoA/17% RoE over FY22-24 with an earnings CAGR of 18%. Investment risk-reward is attractive at current valuation of 1.7x FY24 P/ABV.
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