Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd
Canfin Homes reported a healthy set of numbers for Q2FY21. The loan book grew at 6% YoY and remained stable sequentially. NII growth was robust at 32% YoY, primarily led by a lower cost of funds. NIM jumped 29bps to 3.89% QoQ, which is one of the best NIM compared to the last many quarters. The incremental cost of funds is 6.54%. Pre-provision profit increased by 36%, and PAT jumped by 32%. Asset quality continues to remain stable. Total covid provisions on the balance sheet currently stand at Rs.86cr, which adequate to absorb the next 3 quarter slippages as per management.
We have a positive view on Can fin home considering stable asset quality, reduced competition from HFCs and the ability to raise funds at a competitive rate would help to report superior RoE.
Shares of CAN FIN HOMES LTD. was last trading in BSE at Rs.455.65 as compared to the previous close of Rs. 462.75. The total number of shares traded during the day was 43319 in over 1204 trades.
The stock hit an intraday high of Rs. 470.2 and intraday low of 453. The net turnover during the day was Rs. 20089323.