Can Fin Homes Limited

Financial Services — Mortgage Finance · NSE

₹733.00−₹1.95 (−0.27%)

DalalBaazaar Score

80 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Can Fin Homes Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Can Fin Homes Limited provides housing finance services primarily to first-time homebuyers and professionals in India. The company's products portfolio comprises housing loans, such as individual housing, commercial housing, composite housing, Composite housing loans.

IndustryMortgage Finance

SectorFinancial Services

Employees1,356

Annual revenue₹1,647 Cr

How does it make money?

Turns over ₹1,647 Cr a year. Of every ₹100 of sales, about ₹66 reaches shareholders as profit. Each of its 1,356 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

14 analysts covering the stock expect revenue to grow about 13.6% and earnings to grow about 12.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.6%

Est. earnings growth+12.8%

Analysts14

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +63% while net margin moved +7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+63%

Margin effect+7%

DalalBaazaar Score

80/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of 0.48 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

84/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

85/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

8.5x

3Y Median

14.0x

40 monthly readings · mean 13.9x · range 8.8x–19.6x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 39% below its 3y median of 14.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 50% below the peer median of 17.0x.

vs. its own history

Cheap

14.0x median over 40 months · -39%

vs. sector peers

Cheap

17.0x median of 4 peers · -50%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.41

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 39% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 50% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.6% CAGR
Latest reported year was 6.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 17%✓ 19.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 14.0x✓ 8.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹9,760 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.5x

Cheap

Cheap against the generic band

P/B Ratio

1.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹86.59

Profitable

Profitable on a per-share basis

ROE

19.4%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

6.09x

High

High leverage

Revenue Growth (YoY)

6.2%

Modest

Modest growth

Profit Growth (YoY)

9.2%

Modest

Slow profit growth

Dividend Yield

2.18%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹2,987 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

7.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

2.6%

Weak

Assets generate little profit

Operating Margin

80.1%

Good

Healthy core-business profitability

Net Margin

67.1%

Good

Strong bottom-line conversion

Current Ratio

90.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

738.1 / 778.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,012 Cr	₹1,268 Cr	₹1,366 Cr	₹1,647 Cr	+17.6%
PAT (Net Profit)	₹621 Cr	₹751 Cr	₹857 Cr	₹1,086 Cr	+20.5%
EPS	₹46.65	₹56.38	₹64.37	₹81.54	+20.5%
ROE	17.0%	17.3%	16.9%	18.2%	—
Total Debt	₹28,672 Cr	₹31,692 Cr	₹35,136 Cr	₹38,070 Cr	+9.9%
Free Cash Flow	-₹4,053 Cr	₹205 Cr	-₹2,272 Cr	-₹2,987 Cr	—

🟢 Revenue has grown at 17.6% a year over 3 years.

🟢 PAT (Net Profit) has grown at 20.5% a year over 3 years.

🟢 EPS has grown at 20.5% a year over 3 years.

🟢 ROE has risen from 17.0% to 18.2% over 3 years (+1.1 pts).

🔴 Total Debt has grown at 9.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹44,381 Cr

Total Liabilities

₹38,401 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹2,910 Cr

Capex

-₹77 Cr

Shareholding (proxy)

Institutional Holding

30.3%

Insider Holding

38.7%

Corporate Actions

Dividend Rate

₹16

Ex-Dividend Date

03 Jul 2026

Analyst Consensus

Recommendations

13 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,007.93

+37.5% vs CMP

Target Range

₹795 – ₹1,160

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

2 positive1 mixed3 general

Can Fin Homes share: 21% YTD fall! Will stock rebound? Mirae Asset Sharekhan answers | Target price, rating, rationale

Livemint, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

CANFINHOME Outlook for the Week

Equitypandit, 09 Oct

Can Fin Homes Share Price Update: Rs 755 After 5.2% Rise

Univest, 12 Oct

Can Fin Homes shares rally up to 5% after Q2 net profit jumps 10% to Rs 275 crore, NII rises 7%

The Economic Times, 12 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Can Fin Homes Limited (NSE: CANFINHOME) Reports 10% Profit Growth as Loan Book Expands

Kalkine India, 12 Oct

Can Fin Homes H1FY27 Results: Net profit up 14% to ₹543 crore

scanx.trade, 07 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 3 tripwires holding · see Key things to watch ↑