House First Finance’s strong fundamentals, wholesome return ratios (at the same time as RoE may decline within the close to time period due to decrease leverage) and superior execution relative to friends reinforce its place as a high-quality franchise within the reasonably priced housing finance phase. The brokerage believes House First has potential for scalable development with robust risk-adjusted returns.
NDTV Revenue’s particular analysis part collates high quality and in-depth fairness and economic system analysis studies from throughout India’s prime brokerages, asset managers and analysis companies. These studies supply NDTV Revenue’s subscribers a possibility to increase their understanding of firms, sectors and the economic system.
Motilal Oswal Report
House First Finance Firm Ltd.’s disciplined value administration and a robust capital base ought to drive steady development within the mortgage guide. The corporate’s strong fundamentals, wholesome return ratios (at the same time as RoE may decline within the close to time period due to decrease leverage) and superior execution relative to friends reinforce its place as a high-quality franchise within the reasonably priced housing finance phase.
We consider House First has potential for scalable development with robust risk-adjusted returns.
House First at the moment trades at 2.8x FY27E guide worth per share (put up cash), which is at a slight low cost to a few of its friends within the AHF phase. House First has a robust governance framework, a validated enterprise mannequin led by a seasoned and clear administration group, a sturdy AUM development outlook (two-year CAGR of ~26%) and superior asset high quality.
For a PAT CAGR of ~31% over FY25-27E and RoA/RoE of three.8%/14.4% (put up cash), we reiterate our Purchase score with a goal worth of Rs 1,500 (premised on 3.2x Mar’27E P/BV).
Click on on the attachment to learn the total report:
DISCLAIMER
This report is authored by an exterior get together. NDTV Revenue doesn’t vouch for the accuracy of its contents neither is chargeable for them in any approach. The contents of this part don’t represent funding recommendation. For that you should all the time seek the advice of an skilled based mostly in your particular person wants. The views expressed within the report are that of the writer entity and don’t characterize the views of NDTV Revenue.
Customers haven’t any license to repeat, modify, or distribute the content material with out permission of the Unique Proprietor.
. Learn extra on Analysis Studies by NDTV Revenue.
