Can Fin Homes Limited

Stocks
1

Can Fin Homes Q1 FY24 Results: delivering a 13% increase in PAT!

Can Fin Homes Limited reported unaudited financial results for the quarter that ended on June 2023 or Q1FY24 after the market closer on yesterday. Yesterday the company also held its 36th Annual General Meeting (AGM) through Video Conference and the members of the company have declared the final dividend of Rs 2 per equity share on face value of Rs 2 each for the financial year ended March 31, 2023.

Talking about the financials for Q1FY24 in comparison to the same quarter last year, the company's net profit for the first quarter which ended on June 30, 2023, increased by 13.09% to Rs 183.45 crore from Rs 162.21 crore. In Q1FY24, the company's interest earned increased by 34.88% from Rs 606.50 crore to Rs 818.09 crore in a similar quarter the year prior. In Q1FY24, the company's total net revenue increased by 34.74% from Rs 611.58 crore to Rs 824.09 crore in similar quarter the year prior.

Sequentially the company's net profit for the quarter which ended on June 30, 2023, increased by 10.64% from Rs 165.80 crore. In Q1FY24, the company's total net revenue increased by 7.82% from Rs 764.29 crore in the similar quarter the year prior.

In the first quarter of FY24, the company achieved significant performance. Disbursements during this period showed a notable 14% YoY increase. The loan book also witnessed substantial growth reaching Rs 32,505 crores with an 18% YoY rise. The company now serves a clientele base of approximately 2.46 lakh individuals. 

The company Debt-to-Equity Ratio stood at 7.81 which signifies the company's debt leverage.In terms of asset quality both Gross NPA and Net NPA stood at 0.63% and 0.34% respectively.

Regarding the loan portfolio, the majority of the outstanding loan book accounting for 73% of it belonged to the salaried and professional segment as of June 2023. Housing loans constituted a significant 89% of the loan book with Commercial Real Estate and Non-Housing Loans making up the remaining 11%. 

 

In the last trading session, the scrip closed at Rs 818.75. Today it opened at Rs 815.95 and touched a new 52-week high of Rs 843. It was closed at Rs 829.90, up by 1.36%. Company has a market cap of around Rs 11,050 crore. Over the past one year it has generated a return of around 53.23%.

Can Fin Homes Ltd is a public deposit-taking housing finance company promoted by Canara Bank in 1987, It focuses on funding to low & middle group individuals & first-time homebuyers preferably salaried or professional. However, since 2014 it is also increasing exposure to self-employed professionals & non-professionals. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.
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Can Fin Homes: Shining bright with a long-term breakout in the home finance sector

Long-term breakout

Can Fin Homes Ltd., a prominent player in the housing finance sector, has recently made headlines with its stellar performance in the post-budget market dynamics. As markets rallied towards the last swing high post the budget day, Can Fin Homes Ltd stood out as a shining star by registering a significant long-term continuation breakout.

Established on October 29, 1987, Can Fin Homes is engaged in providing housing finance services, offering a range of housing loans, non-housing loans, and fixed and cumulative deposit services. Headquartered in Bangalore, India, the company has established itself as a key player in the housing finance sector.

Technical analysis

The stock entered a consolidation phase after achieving a lifetime high of Rs 909.80. During this consolidation period, it retraced its previous rally and found support at the 50% Fibonacci retracement level, which coincided with the support of the 200-day moving average (DMA), forming a solid base.

In the current week, Can Fin Homes Ltd. witnessed a surge of over 7%, marking a substantial long-term continuation breakout spanning over six months. This breakout was accompanied by robust volumes, indicating strong investor interest and confidence in the stock. In the most recent trading session, the stock exhibited a 4.26% rally with a substantial volume of 3.65 million shares, surpassing the total fall of the previous week.

The stock made a day high of Rs 838, closing at Rs 828.85, confirming the continuation of the uptrend characterized by higher highs and higher lows. This suggests the potential initiation of a fresh upward trajectory. The close above the SUPERTREND (ATR 10-Multiplier 1) further underscores favourable momentum.

Following this breakout, with the breakout level set at Rs 814, the stock holds the potential to reach Rs 1,060, representing a substantial 30% gain from the breakout point.

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Future outlook

Can Fin Homes Ltd. has now captured the attention of both swing traders and long-term investors, presenting a promising opportunity for further upside potential in the dynamic and evolving home financing sector. As this sector remains in the spotlight, Can Fin Homes’s performance positions it as a significant player for those seeking growth and potential returns in the realm of the realty sector. Investors are advised to closely monitor the stock’s performance as it navigates this exciting phase in the market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.