Mehabe score: 4 G Factor: 3 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. 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:CANFINHOME Main Symbol:CANFINHOME
Stock trades at 601.0, above its 50dma 596.64. It also trades above its 200dma 575.91. The stock remains bullish on techicals
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 2.83 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 25.4x. Aptus Value Hou. trades at the industry’s max P/E of 80.12x. CANFINHOME trades at a P/E of 17.2x
– Industry’s mean G-Factor is 3.9 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 3.2%. The max 1- month return was given by AAVAS Financiers: a return of 13.32 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 508.0 cr compared to Rs 503.0 cr for period ended Dec 2020, a rise of 1.0% .
vis-vis 34.0 for period ended Dec 2020 .
Operating Margins expanded 387.0 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 54.0 cr for period ended Dec 2021 and operating profit margin at 10.6 % for same period.
The EPS for quarter ended Dec 2021 is Rs 8.69 compared to Rs 9.29 for previous quarter ended Sep 2021 and Rs 9.91 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1894.0 cr for period ended TTM vis-vis sales of Rs 2018.0 cr for the period ended Mar 2021, a fall of 6.5%. The 3 year sales cagr stood at 3.1%.
Operating margins shrank to 622.0% for period ended TTM vis-vis 627.0% for period ended Mar 2021, contraction of 500.0 bps.
Net Profit reported at Rs 451.0 cr for period ended TTM vis-vis sales of Rs 456.0 cr for the period ended Mar 2021, falling 1.1%.
Company recorded a healthy Net Profit CAGR of 14.9% 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 25% on a 1 Year basis vis-vis a return of 34% 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 remained largely constant. The Dec 2021 public holding stood at 47.6% vis-vis 48.36% for Sep 2021
Conclusion
– ‘s median sales growth is 23.77% of last 10 years – Stock is trading at 2.83 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 on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 596.64 and is trading at 601.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
