Can Fin Homes has received a 'BUY' recommendation from Prabhudas Lilladher, with a target price of Rs 1,000, up from Rs 930. The company's recent performance has shown positive growth in net interest income (NII) and net interest margin (NIM), which increased by 8 basis points quarter-on-quarter to 3.65%. This growth can be attributed to favorable loan yields and funding costs.

The company reported a year-on-year loan growth of 9.7% and has set ambitious disbursal targets of Rs 100 billion for FY25, projecting a growth rate of 13-15%. The management has outlined several strategies to support NIM, including lower-cost NHB sanctions, a significant portion of borrowings linked to repo rates, and a high share of higher-yielding self-employed non-professional (SENP) loans in incremental credit flow. Can Fin Homes is expected to achieve an asset under management (AuM) compound annual growth rate (CAGR) of 13.7% from FY24 to FY27, with potential upside risks due to the renewal of the Credit Linked Subsidy Scheme (CLSS) and technological advancements.

The company aims to further enhance loan growth to 15-17% in FY26. Can Fin Homes is expected to achieve an asset under management (AuM) compound annual growth rate (CAGR) of 13.7% from FY24 to FY27, with potential upside risks due to the renewal of the Credit Linked Subsidy Scheme (CLSS) and technological advancements.