Prabhudas Lilladher issued a buy rating for Can Fin Homes with a target price of Rs 1090. The firm noted that Q2 disbursements fell 7% year-on-year, though loan book growth reached 10%. Experts expect IT-led efficiency gains to support growth in H2FY27, while asset quality remains comfortable for the company.
Prabhudas Lilladher's research report on Can Fin Homes Q2 disbursements saw a decline (-7% YoY) due to the implementation of project Tejas and cancellation of DDs, while loan book growth at ~10% YoY was supported by lower run-down (4.17%). IT-led efficiency gains and workforce rationalisation are expected to support disbursement growth in H2FY27. However, we remain conservative on growth and build in AUM growth of 13%/14% for FY27/FY28E, factoring in the lower H1 run-rate. We expect FY27/ FY28E NIM to trend broadly in-line with guidance at 3.75%. Asset quality remains comfortable with benign credit cost guidance of ~10bps for FY27. We slightly tweak our FY27/ FY28E estimates factoring a moderation in growth and heightened competition. Outlook We keep our P/ABV multiple unchanged at 1.7x Sep'28E, resulting in a TP of INR1,090. Valuation remains undemanding and sustained housing demand underpin our positive view. Reiterate BUY. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Can Fin Homes - 1310026 - prabhu