India Ratings has assigned Home First Finance Company India's Banks Loans and NCDs 'IND AA-'/Stable, Affirms CP at 'IND A1+'.
Established and Growing franchise in Affordable Housing Segment: Home First has established a reasonable franchise in the affordable housing segment while continuing to expand its reach and establish its footprint (assets under management (AUM) of INR49.9 billion in 3QFY22).
Strong Capital Buffers, with Demonstrated Capital Raising Ability: Home First's assets under management (AUM) grew 3.7x over FY18-3QFY22, supported by regular capital infusions, the ability to leverage, and the government's impetus on affordable housing.
Fairly Diversified Funding Mix; Relationship with Large Banks Already in Place: Home First has mobilised funds from 16 financiers, including banks (59.9% of total borrowings at 3QFY22), and a large non-banking finance company (2.9%), and it also has refinance lines (30.0%) from the National Housing Bank ('IND AAA'/Stable).
Experienced Management Team: Home First has an operating track record of over 11 years and a considerable presence in the states of Gujarat, Maharashtra and Tamil Nadu; the states jointly accounted for 65.7% of the assets under management (AUM) in 3QFY22 (FY21:69% FY20: 71%; FY19: 78%).
Shares of Home First Finance Company India Limited was last trading in BSE at Rs. 673.40 as compared to the previous close of Rs. 682.15. The total number of shares traded during the day was 598 in over 215 trades.
The stock hit an intraday high of Rs. 683.90 and intraday low of 668.90. The net turnover during the day was Rs. 404856.00.