Can Fin Homes Ltd
Can Fin Homes Ltd
Financial ServicesCan Fin Homes Ltd. is a deposit-taking housing finance company (HFC) registered with National Housing Bank (NHB).Canara Bank holds 29.99% stake in the company. It primarily provides relatively smaller ticket-sized housing loans to salaried & professional and self-employed non-professional (SENP) borrowers.[1]
Can Fin Homes trades at an attractive PE of 10.9x with consistent 19% ROE over 5 years and 20% profit CAGR over 3 years. With 87.5% analyst buy ratings and a market cap of Rs 11,702 Cr, the stock offers a compelling risk-reward for a well-managed housing finance company.
Key Fundamentals
MicrocapHousing FinanceFinancial ServicesTechnical Indicators
Key Insights
Strengths
1- Company has delivered good profit growth of 18.9% CAGR over last 5 years
Weaknesses
2- Company has low interest coverage ratio.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoCan Fin Homes trades at an attractive PE of 10.9x with consistent 19% ROE over 5 years and 20% profit CAGR over 3 years. With 87.5% analyst buy ratings and a market cap of Rs 11,702 Cr, the stock offers a compelling risk-reward for a well-managed housing finance company.
- Attractive valuation at PE of 10.9x, significantly below housing finance sector average of 18-22x
- Consistent ROE of 19% over 3, 5, and 10-year periods with last year at 20%, indicating stable capital efficiency
- Strong profit CAGR of 20% over 3 years and 19% over 5 years, outpacing revenue growth
- Overwhelming analyst consensus with 87.5% buy ratings (14 out of 16 analysts) and zero sell ratings
- Healthy dividend yield of 1.69%, attractive for a growth-oriented housing finance company
- Compounded sales growth of 15-16% over 3, 5, and 10-year horizons demonstrates long-term business scalability
- Price-to-book of 1.98x is reasonable for a company delivering 19-20% ROE consistently
- TTM profit growth of 27% shows accelerating earnings momentum compared to historical averages
- Low interest coverage ratio raises concerns about debt servicing ability in a rising rate environment
- Potential capitalization of interest costs may be inflating reported profitability and asset values
- Stock CAGR of only 6% over 3 years significantly lags profit CAGR of 20%, suggesting market skepticism
- TTM sales growth has decelerated to 9% from 15-16% over longer periods, indicating possible loan book growth slowdown
- Being a housing finance company, high leverage is inherent with debt-to-equity likely above 7-8x typical for the sector
- Market cap of Rs 11,702 Cr makes it a mid-cap with higher volatility and liquidity risks versus large-cap peers like HDFC or LIC Housing
- 5-year profit CAGR of 18.9% while good, faces tough comparisons as base grows larger going forward
- 10-year stock CAGR of 14% underperforms broader Nifty financial services index, suggesting structural discount
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- RBI penalty for non-compliance Jun 20
RBI imposed ₹2.70 lakh penalty on Can Fin Homes for non-compliance with Fair Practices Code regarding instalment bifurcation. Corrective measures effective April 1, 2026.
- Large asset-liability mismatch Jun 10
ALM statement for Q4FY26 disclosed cumulative mismatch of ₹27,131.55 crore, highlighting structural liquidity gaps.
- ₹5,000 cr NCD fundraise approved Jun 08
Board approved raising up to ₹5,000 crore via NCDs and other debt instruments to fund housing loan growth and strengthen long-term liquidity. Move expected to support NIMs of ~3.5% or higher.
- Strong Q4FY26 earnings growth Jun 08
Can Fin Homes reported 12% YoY growth in net profit for Q4FY26, supported by robust loan disbursements and plans to expand branch network in Western India.
- ₹8 final dividend declared Jun 19
Board fixed July 3, 2026 as record date for final dividend of ₹8.00 per share. 39th AGM scheduled for July 29, 2026.
- Unclaimed dividend IEPF transfer reminder Jun 12
Final reminder issued for transfer of unclaimed FY2018-19 dividends to IEPF on August 22, 2026. Shareholders must claim by August 21, 2026.
- Management meets institutional investors May 28
Management discussed Q4FY26 results and growth prospects with investors via Capital 360 ONE and Ashika Institutional Equities.
TL;DR: Can Fin Homes is executing well with 12% YoY profit growth and a ₹5,000 crore NCD approval that strengthens its lending capacity and liability management. The ₹8 dividend signals confidence in cash flows. Key risks include a ₹27,131 crore ALM mismatch and a minor RBI penalty, though neither appears material to operations. The trend is improving as the company diversifies geographically and targets competitive NIMs through efficient debt structuring.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 764 | 824 | 871 | 901 | 927 | 931 | 962 | 986 | 999 | 1,020 | 1,049 | 1,073 | 1,074 |
| Expenses | 72 | 54 | 122 | 77 | 70 | 71 | 70 | 78 | 82 | 91 | 75 | 85 | 83 |
| Financing Profit | 201 | 236 | 201 | 258 | 273 | 258 | 277 | 272 | 282 | 281 | 336 | 345 | 356 |
| Fin. Margin % | 26% | 29% | 23% | 29% | 29% | 28% | 29% | 28% | 28% | 28% | 32% | 32% | 33% |
| Other Income | 1 | 0 | 0 | 1 | 1 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 2 |
| Interest | 491 | 533 | 548 | 566 | 584 | 603 | 616 | 636 | 634 | 648 | 639 | 642 | 634 |
| Depreciation | 4 | 3 | 3 | 3 | 4 | 3 | 3 | 3 | 4 | 3 | 4 | 4 | 5 |
| PBT | 198 | 234 | 198 | 256 | 270 | 255 | 274 | 269 | 279 | 278 | 332 | 341 | 353 |
| Tax % | 16% | 22% | 20% | 22% | 23% | 22% | 23% | 21% | 16% | 19% | 24% | 22% | 2% |
| Net Profit | 166 | 183 | 158 | 200 | 209 | 200 | 211 | 212 | 234 | 224 | 251 | 265 | 346 |
| EPS in Rs | 12.45 | 13.78 | 11.87 | 15.03 | 15.7 | 14.99 | 15.88 | 15.93 | 17.57 | 16.81 | 18.88 | 19.89 | 25.96 |
| Gross NPA % | 0.55% | 0.63% | 0.76% | 0.91% | 0.82% | 0.91% | 0.88% | 0.92% | 0.87% | 0.98% | 0.94% | 0.92% | 0.85% |
| Net NPA % | 0.26% | 0.34% | 0.43% | 0.49% | 0.42% | 0.49% | 0.47% | 0.5% | 0.46% | 0.54% | 0.5% | 0.49% | 0.37% |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 816 | 1,083 | 1,353 | 1,518 | 1,727 | 2,030 | 2,018 | 1,988 | 2,742 | 3,523 | 3,879 | 4,216 |
| Expenses | 65 | 83 | 95 | 107 | 89 | 158 | 182 | 189 | 205 | 323 | 301 | 335 |
| Financing Profit | 140 | 257 | 373 | 430 | 468 | 528 | 627 | 644 | 835 | 969 | 1,089 | 1,318 |
| Fin. Margin % | 17% | 24% | 28% | 28% | 27% | 26% | 31% | 32% | 30% | 28% | 28% | 31% |
| Other Income | 1 | 1 | 1 | 4 | 4 | 0 | 0 | 1 | 1 | 1 | 1 | 2 |
| Interest | 611 | 744 | 884 | 981 | 1,170 | 1,345 | 1,209 | 1,155 | 1,702 | 2,232 | 2,488 | 2,563 |
| Depreciation | 4 | 3 | 4 | 3 | 3 | 9 | 10 | 10 | 12 | 13 | 13 | 17 |
| PBT | 137 | 254 | 370 | 431 | 470 | 518 | 618 | 635 | 824 | 958 | 1,077 | 1,304 |
| Tax % | 37% | 38% | 36% | 34% | 37% | 27% | 26% | 26% | 25% | 22% | 20% | 17% |
| Net Profit | 86 | 157 | 235 | 286 | 297 | 376 | 456 | 471 | 621 | 751 | 857 | 1,086 |
| EPS in Rs | 6.48 | 11.8 | 17.68 | 21.49 | 22.29 | 28.25 | 34.25 | 35.38 | 46.65 | 56.38 | 64.37 | 81.54 |
| Div. Payout % | 22% | 17% | 11% | 9% | 9% | 7% | 6% | 8% | 8% | 11% | 19% | 18% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 |
| Reserves | 745 | 852 | 1,050 | 1,460 | 1,756 | 2,123 | 2,583 | 3,040 | 3,621 | 4,317 | 5,041 | 5,954 |
| Borrowing | 7,375 | 9,444 | 11,872 | 13,921 | 16,880 | 18,748 | 19,293 | 24,648 | 29,068 | 31,863 | 35,051 | 38,258 |
| Other Liabilities | 188 | 433 | 430 | 322 | 67 | 145 | 171 | 230 | 355 | 395 | 849 | 143 |
| Total Liabilities | 8,334 | 10,756 | 13,379 | 15,730 | 18,729 | 21,044 | 22,074 | 27,944 | 33,070 | 36,602 | 40,967 | 44,381 |
| Fixed Assets | 9 | 9 | 10 | 10 | 10 | 38 | 38 | 35 | 45 | 53 | 49 | 110 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 |
| Investments | 15 | 15 | 16 | 16 | 16 | 24 | 50 | 1,126 | 1,459 | 1,459 | 2,374 | 2,143 |
| Other Assets | 8,310 | 10,732 | 13,352 | 15,704 | 18,703 | 20,981 | 21,986 | 26,784 | 31,566 | 35,090 | 38,543 | 42,128 |
| Total Assets | 8,334 | 10,756 | 13,379 | 15,730 | 18,729 | 21,044 | 22,074 | 27,944 | 33,070 | 36,602 | 40,967 | 44,381 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 53 | 382 | -2,356 | -2,018 | -2,335 | -1,842 | -851 | -3,916 | -4,044 | -2,570 | 933 | -2,940 |
| Investing | -4 | -11 | -7 | -2 | -4 | -13 | -28 | -1,380 | -327 | -170 | -785 | 153 |
| Financing | -55 | -371 | 2,363 | 2,019 | 2,739 | 1,826 | 508 | 5,299 | 4,370 | 2,738 | -149 | 2,787 |
| Net Cash Flow | -6 | 0 | 0 | -1 | 401 | -29 | -372 | 2 | -1 | -1 | 0 | 0 |
| Free Cash Flow | 48 | 379 | -2,360 | -2,021 | -2,338 | -1,846 | -854 | -3,920 | -4,053 | -2,589 | 917 | -3,016 |
| CFO/OP | 13 | 46 | -178 | -133 | -133 | -92 | -39 | -210 | -153 | -74 | 32 | -68 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 14% | 19% | 24% | 22% | 18% | 19% | 19% | 17% | 18% | 19% | 18% | 20% |
Documents
Frequently Asked Questions about Can Fin Homes Ltd
What does Can Fin Homes Ltd do?
Where is Can Fin Homes Ltd (CANFINHOME) listed?
Which sector does Can Fin Homes Ltd belong to?
What is the market capitalisation of Can Fin Homes Ltd?
What is the PE ratio of Can Fin Homes Ltd?
What is the 52-week high and low of Can Fin Homes Ltd?
Does Can Fin Homes Ltd pay dividends?
What is the Return on Equity (ROE) of Can Fin Homes Ltd?
How can I research Can Fin Homes Ltd on Tapetide?
Company Information
Can Fin Homes Ltd. is a deposit-taking housing finance company (HFC) registered with National Housing Bank (NHB).Canara Bank holds 29.99% stake in the company. It primarily provides relatively smaller ticket-sized housing loans to salaried & professional and self-employed non-professional (SENP) borrowers.[1]