Mehabe score: 3 G Factor: 3 Piotski Score: 4 The stock has a rating SELL. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 4.
Description
Can Fin Homes Ltd. is a public deposit-taking housing finance company promoted by Canara Bank in 1987, It focuses on funding to low & middle group individuals & first-time homebuyers preferably salaried or professional. However, since 2014 it is also increasing exposure to self-employed professionals & non-professionals. [1]Site:CANFINHOMEMain Symbol:CANFINHOME
Stock trades at 574.0, below its 50dma 593.1. However it is trading above its 200dma 571.7. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 593.1.
The 52 week high is at 722.00 and the 52week low is at 455.25
Price Chart
P/E Chart
Sales and Margin
Strengths
– ‘s median sales growth is 23.77% of last 10 years
Weakness
– Stock is trading at 2.70 times its book value
– has low interest coverage ratio.
-Promoter holding is low: 29.99%
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 25.1x. Aptus Value Hou. trades at the industry’s max P/E of 79.48x. CANFINHOME trades at a P/E of 16.4x
– Industry’s mean G-Factor is 3.6 while the mean Piotski score is 7.0. CANFINHOME has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is -3.6%. The max 1- month return was given by Aptus Value Hou.: a return of 11.4 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 468.0 cr compared to Rs 526.0 cr for period ended Sep 2020, a fall of 11.0%
Operating Profits reported at Rs 25.0 cr for period ended Sep 2021 vis-vis 38.0 for period ended Sep 2020 .
Operating Margins contracted -188.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 9.29 compared to Rs 8.17 for previous quarter ended Jun 2021 and Rs 9.64 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1889.0 cr for period ended TTM vis-vis sales of Rs 2018.0 cr for the period ended Mar 2021, a fall of 6.8%. The 3 year sales cagr stood at 3.0%.
Operating margins expanded to 644.0% for period ended TTM vis-vis 627.0% for period ended Mar 2021, expansion of 1700.0 bps.
Net Profit reported at Rs 467.0 cr for period ended TTM vis-vis sales of Rs 456.0 cr for the period ended Mar 2021, rising 2.4%.
Company recorded a healthy Net Profit CAGR of 16.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -851.0 cr for period ended Mar 2021 vis-vis Rs -1842.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 19.0% compared to 19.0% over the last 3 Years. – The stock has given a return of 17% on a 1 Year basis vis-vis a return of 27% over the last 3 Years. – The compounded sales growth on a TTM bassis is -10% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of 17% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has fallen for the period ended Sep 2021. The Sep 2021 public holding stood at 48.36% vis-vis 52.7% for Jun 2021
Conclusion
– ‘s median sales growth is 23.77% of last 10 years – Stock is trading at 2.70 times its book value
– has low interest coverage ratio.
-Promoter holding is low: 29.99%
– might be capitalizing the interest cost
Fundamentally, the stock remains weak. The business fundamentals are on shaky ground. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock reflects the poor fundamentals. The stock remains below its 50 DMA 593.1 and is trading at 574.0. It has shown near term lack of bullish momentum. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
