Mehabe score: 7 G Factor: 4 Piotski Score: 5 The stock has a rating 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 4 and Piotski score of 5.
Description
Home First Finance Company India (HFFC) is a Housing Finance Company which offers home loan with 48 hours sanctions and hassle-free process. [1] Site:HOMEFIRST Main Symbol:HOMEFIRST
Stock trades at 788.0, above its 50dma 787.9. It also trades above its 200dma 671.87. The stock remains bullish on techicals
The 52 week high is at 921.30 and the 52week low is at 440.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 75.53% CAGR over last 5 years
Weakness
– Stock is trading at 4.72 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding is low: 33.62%
– has a low return on equity of 9.75% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.8x. Bajaj Finance trades at the industry’s max P/E of 69.32x. HOMEFIRST trades at a P/E of 54.3x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 6.0. HOMEFIRST has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is -0.5%. The max 1- month return was given by Cholaman.Inv.&Fn: a return of 25.22 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 152.0 cr compared to Rs 110.0 cr for period ended Dec 2020, a rise of 38.2% .
vis-vis 77.0 for period ended Dec 2020 .
Operating Margins expanded 631.6 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 116.0 cr for period ended Dec 2021 and operating profit margin at 76.3 % for same period.
The EPS for quarter ended Dec 2021 is Rs 5.25 compared to Rs 5.13 for previous quarter ended Sep 2021 and Rs 0.0 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 571.0 cr for period ended TTM vis-vis sales of Rs 489.0 cr for the period ended Mar 2021, a healthy growth of 14.4%. The 3 year sales cagr stood at 29.3%.
Operating margins expanded to 75.0% for period ended TTM vis-vis 74.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 157.0 cr for period ended TTM vis-vis sales of Rs 100.0 cr for the period ended Mar 2021, rising 36.3%.
Company recorded a healthy Net Profit CAGR of 50.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -223.0 cr for period ended Mar 2021 vis-vis Rs -823.0 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 9.0% compared to 10.0% over the last 3 Years. – The stock has given a return of % on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 16% vis-vis a compounded sales growth of 50% over the last 3 Years. – The compounded profit growth on a TTM basis is 33% vis-vis a compounded profit growth of 58% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 12.07% vis-vis 12.68% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 13.88% vis-vis 13.04% for Sep 2021
Conclusion
– has delivered good profit growth of 75.53% CAGR over last 5 years – Stock is trading at 4.72 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-Promoter holding is low: 33.62%
– has a low return on equity of 9.75% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 787.9 and is trading at 788.0, thus bullish price action wise.
