Apr'25 View on Home First Finance Company India Ltd

Home First Finance Company India (HFFC) is a Housing Finance Company which offers home loan with 48 hours sanctions and hassle-free process. The stock looks to make a new high above 1,400 on back of following data Rationale: • Co. reported strong performance with 33% loan & 24% earnings growth in Q3FY25. • Disbursements relatively lower (up 18% yoy) & an inch-up in early bucket delinquencies. • We expect a catch-up over time, reflecting its superior execution capabilities. • We continue to build consistent footprint expansion, driving high loan growth with stable margins and asset quality performance. • Retain BUY with an FV of Rs1,375 (Rs1,360 earlier). Q3FY25 Earnings Update: Positives: • Co reported 21% NII growth & high (6X) fee income growth on a low base. • NIMs to remain stable over the medium term. • The company has delivered the highest growth in the larger tickets. • We expect Home first to add 20 branches per year, expanding its footprint. Negatives: • Stressed loans were up 79 bps qoq in Q3FY25. • Early delinquency ratios inched up in Q3FY25.