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New Multibagger – Can Fin Homes

Can Fin Homes is a public deposit-taking housing finance company. It focuses on funding low & middle-income individuals and first-time homebuyers, preferably salaried professionals, while also extending services to builders, corporates, and others.

Its product portfolio includes: home loans across categories such as affordable housing, subsidy-linked loans, and PMAY schemes. It also extends services to businesses and individuals through varied loan types including site loans and top-up credit.

For individuals, Can Fin also offers personal loans, children’s education loans, loans for pensioners, as well as fixed and cumulative deposits.

The company operates in three key segments: Housing Finance, Non-housing Finance, and Deposits. The average loan ticket size is 18 lakh for housing and 9 lakh for non-housing credit. It also accepts Fixed and Cumulative deposits under National Housing Bank guidelines.

Headquartered in Bengaluru, Can Fin has a widespread network spanning 205 branches, affordable housing centers, and satellite offices across India. Shri Suresh S Iyer is the current Managing Director & CEO.

Core Offerings

• Housing Finance
• Non-Housing Finance
• Deposits

Positives

• 205 branches across 21 states and UTs, serving diverse geographies.
• Plans to expand network and penetrate new high-potential markets.
• Earnings CAGR of ~17.1% over the last 5 years.
• Intrinsic value estimated above 30%.
• Average borrowing cost at 6.5%, sustaining healthy spreads.
• Loan book crossed ?30,000 crore – strong business growth.
• 27% loan share from self-employed customers (?8,477 crore).
• Attractive valuation: P/E ~15X vs peer average ~24X.
• Better value than Indian diversified financial industry average (28.9X).
• Revenue forecasted at 14.7% growth vs Indian market 9.6%.
• Earnings growth forecast ~13.6%, higher than savings rate.

Challenges

• Intense competition from banks and larger HFCs in Tier I & II cities.
• Credit risk due to borrower defaults.
• Macroeconomic factors like inflation, demand-supply, and interest rates can cause liquidity and funding risks.

Stock Analysis at a Glance

• Economic Moat – Moderate
• Growth – Good
• Valuation – Good
• Debt – High
• Integrity – Moderate

Final View

The company shows strong fundamentals to generate 3–5X returns in value investing india the medium to long term. Investors can review our full analysis for deeper insights.

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