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New Multibagger – Can Fin Homes
Can Fin Homes is an established NBFC in the housing finance sector. It mainly caters to salaried professionals from lower and middle segments, in addition to developers and corporates.
Its product portfolio includes: individual housing loans, affordable housing loans, credit-linked subsidy schemes, and Pradhan Mantri Awas Yojana (PMAY). It also provides loans beyond housing, such as commercial property loans, mortgage financing, rent receivable loans, and top-ups.
For individuals, Can Fin also provides lending solutions like personal, education, and pensioner loans while mobilizing deposits.
The company operates in three key segments: Housing Finance, Non-housing Finance, and Deposits. The average loan ticket size is ?18L in housing, ?9L in non-housing finance. It also accepts Fixed and Cumulative deposits under National Housing Bank guidelines.
Headquartered in Bengaluru, Can Fin has a pan-India presence with 205 branches, 21 Affordable Housing Loan Centers, 12 satellite offices, and a total of 219 outlets across 100+ cities in 21 states and Union Territories. Shri Suresh S Iyer is the current Managing Director & CEO.
Business Segments
• Housing Finance
• Non-Housing Finance
• Deposits
Strengths
• 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 value investing india 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.
Negatives
• 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.
Warren Buffett Checklist
• Economic Moat – Moderate
• Growth – Good
• Valuation – Good
• Debt – High
• Integrity – Moderate
Final View
The company shows strong fundamentals to generate 3–5X returns in the medium to long term. Full details are available in the complete article on our website.
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Futurecaps is a licensed SEBI Research Analyst delivering investment insights since 2012. We follow Warren Buffett’s value investing principles and have created 50+ multibaggers in the past. Our pricing is kept low to ensure accessibility for young and small investors.