Sharekhan's research report on Can Fin Homes
We believe Can Fin Homes could outperform in the near term as and when the announcement of its new MD/CEO happens. The company has shared that identification of the new MD/CEO is in an advanced stage. The new MD/CEO is likely from the housing finance sector and the announcement would be made before FY2023 ends. Business momentum continues to remain healthy amid a strong demand environment; however, compression in NIM is expected in H2FY2023. Thus, we expect the company to report margin of 3.4-3.5% in H2FY2023 vs. ~3.6% in H1FY2023.
Outlook
We expect Can Fin Homes to deliver ROA/RoE of 1.9%/17% over FY2022-FY2025E. At the CMP, the stock trades at 1.9x/1.6x/1.4x its FY2023E/FY2024E/FY2025E ABV, respectively. We reiterate Buy with an unchanged PT of Rs. 670.
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