CAN FIN HOMES Q4 view

Net profit rose 47% YoY to ₹3.45B. Revenue grew 9% YoY to ₹10.7B. Asset quality improved: GNPA at 0.85% (vs 0.92% QoQ), NNPA at 0.37% (vs 0.49% QoQ). Net Interest Margin (NIM) expanded to 4.19% (vs 3.64% last year). ROA improved to 3.29% (vs 2.24%). ROE surged to 23.12% (vs 16.92%). Debt-to-equity ratio reduced to 6.40 (from 6.96). Loan book grew 10% YoY to ₹42,209 Cr. Disbursements up 23% YoY to ₹10,531 Cr. Dividend declared: ₹8 per share. ✅ Strengths Strong profit growth and margin expansion. Improved asset quality with lower NPAs. Efficient operations reflected in higher ROA/ROE. Consistent loan growth and disbursement momentum. Dividend payout signals confidence in cash flows. ⚠️ Risks High leverage: Debt-to-equity still elevated at 6.4. Sector concentration: 72% exposure to housing loans → vulnerable to real estate cycles. Interest rate sensitivity: Rising borrowing costs could squeeze spreads. Regulatory risks: RBI norms on provisioning/capital adequacy may impact. Competition: Larger peers (HDFC Ltd, LIC Housing Finance) could limit market share. 🔎 Other Financial Factors Credit provisions of ~₹400 Cr for expected losses show prudent risk management. Management changes (recent resignations) could affect stability. EPS at ₹25.96 (Q4) and ₹81.54 (FY26) reflects strong earnings growth.