Hold Can Fin Homes; target of Rs 291: Centrum
Centrum’s research report on Can Fin Homes
Can Fin Homes Ltd (CFHL) reported muted growth in Q2FY19 with net interest income (NII), pre-provisioning profit (PPP) and net profit increasing in single digits each. The loan growth remained close to 17% YoY (up ~5% QoQ) to Rs16,935 crore as on 30 Sept’18, the slowest pace in several years. However, on the bright side, the asset quality improved marginally with gross and net NPAs down 3bps QoQ to 0.63% and 2bps to 0.42%, respectively.
We maintain Hold rating on the stock with a target price of Rs291, valuing the stock at 2.0x its FY20E ABV.
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