Can Fin Homes (CANF IN) – Q4FY26 Result Update – Core markets stabilize; scaling up is key – BUY
Published on 28 Apr 2026
4Q disbursements saw a pick-up with a positive recovery rate in Karnataka/ Telangana underway. While loan book grew 10.5% YoY in Q4, we build a loan growth of 14%/13% in FY27/ FY28E. Expect FY27/ FY28E NIM to trend in-line with guidance at 3.75% as portfolio reprices; company also has levers to manage an elevated CoF. Asset quality trends see steady improvement with credit cost guidance to remain benign at ~15bps in FY27. Cost/income ratio is expected to be elevated at ~18% over FY27-28E due to investments in business transformation and branch expansion. We tweak our FY27/ FY28E estimates factoring a pick-up in growth and stable margin trajectory. We value the stock at 1.8x Mar-28E P/ABV, resulting in a TP of Rs 1,075. Reiterate BUY.
