Can Fin Homes (CANF IN) – Q1FY27 Result Update – Back on growth path with a stable margin profile – BUY
Published on 21 Jul 2026
Q1 disbursements witnessed a strong pick-up (29.5% YoY) supporting a healthy loan book growth of ~11% YoY. While growth momentum remains healthy, higher run-down of 4.4% dragged loan book growth and remains a key monitorable. We expect growth to continue (14%/13% in FY27/FY28E) aided by sustained housing demand, branch expansion and manpower addition. Expect FY27/ FY28E NIM to trend in-line with guidance at 3.75%. Asset quality remains comfortable with benign credit cost guidance of ~10bps for FY27. Cost/income ratio is expected to be elevated at ~19% over FY27 due to investments in business transformation and branch expansion. We slightly tweak our FY27/ FY28E estimates factoring a pick-up in growth and stable margin trajectory. We keep our P/ABV multiple unchanged at 1.8x Mar-28E, resulting in a TP of INR1,075. Reiterate BUY.
