HOMEFIRST

Home First Finance, with its market cap around ₹11,000 crore, presents an interesting case. While promoters have been selling, FIIs and DIIs have consistently increased their stake, underscoring institutional confidence in its professional management. The current PE of 23 and P/B of 2.88, alongside an ROA of 3.51% (down from 5%), suggest a more reasonable entry point. This stock is known for significant rallies—60-70% gains—often followed by characteristic 30-34% corrections, a pattern we've seen repeatedly. The recent drop, partly due to rising NPAs and stretched valuations post-rally, aligns perfectly with this historical trend. For those with a long-term view, this recurring correction might just be the dip worth watching for a recovery.