Home First Finance shares fell 5% to a day low of Rs 870 on November 23 after 86.2 lakh shares, or roughly 10% equity, worth Rs 754 changed hands. As of 10 a.m., the S&P BSE Sensex was up 111 points, or 0.1 percent, to 66,134. This housing finance company's stock has fallen 7% in the last week, compared to a 0.8 percent rise in the benchmark Sensex.
Home First Finance shares fell 5% to a day low of Rs 870 on November 23 after 86.2 lakh shares, or roughly 10% equity, worth Rs 754 changed hands. As of 10 a.m., the S&P BSE Sensex was up 111 points, or 0.1 percent, to 66,134. This housing finance company's stock has fallen 7% in the last week, compared to a 0.8 percent rise in the benchmark Sensex.
According to reports, private equity firms such as Warburg Pincus, True North, and Aether have sold their shares. The block deal's floor price was fixed at a 5% discount to Rs 869 per share.
Home First Finance reported a 37 percent year-on-year increase in consolidated net profit in the September-ended quarter, while total income increased 46.7 percent year on year (YoY).
Despite inflationary pressures in a peak interest rate climate, the company produced a return on equity (RoE) of 15.6 percent, according to management. "During the July-September quarter, we added seven branches, totaling 120 physical branches." "The company's Q2 spreads of 5.5 percent were higher than our guided level of 5.25 percent," the company said.
Centrum analysts were enthusiastic on Home First lending, calling the company the best prospect in the home lending industry. "We have raised our earnings forecast for FY24-26 by 3-5 percent." "We continue to value Home First at 4x H1FY26 P/ABV in order to arrive at our Target Price of Rs 1,150 per share," said the brokerage company.
According to analysts, Home First has routinely produced assets under management (AUM) growth of more than 30% over the last seven quarters. While house loans increased by an average of 30%, disbursements increased by 37% year on year in Q2FY24.
