Can Fin Homes has been given a "Buy" rating by Sharekhan, with a target price of Rs 1,050. The company is expected to maintain a strong return on equity (RoE) of around 18% from FY2025 to FY2027, with a renewed focus on accelerating asset under management (AUM) growth.
The implementation of streamlined internal processes and improved IT systems is expected to enhance management's ability to drive growth through better centralized due diligence. The housing sector is expected to benefit from the Pradhan Mantri Awas Yojana (PMAY) initiative. Can Fin Homes is also expected to maintain stable asset quality, with a decrease in credit costs, leading to higher net earnings.
AUM growth rates of 14%, 16.5%, and 18% are projected for FY2025, FY2026, and FY2027, respectively. The stock is currently trading at multiples of 2.1x, 1.8x, and 1.5x its estimated adjusted book value for FY2025, FY2026, and FY2027.