Home First Finance Company India Limited

Financial Services — Mortgage Finance · NSE

₹1,105.00−₹7.70 (−0.69%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Home First Finance Company India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Home First Finance Company India Limited operates as a housing finance company in India. The company offers home, self-construction, renovation, mortgage, shop, and resale, as well as top-up loans. It also provides insurance loan products and loans through mobile applications.

IndustryMortgage Finance

SectorFinancial Services

Employees1,855

Annual revenue₹1,656 Cr

How does it make money?

Turns over ₹1,656 Cr a year. Of every ₹100 of sales, about ₹33 reaches shareholders as profit, with ₹40 left at the operating level before interest, tax and depreciation. Each of its 1,855 employees supports ₹89.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin39.9%

Net margin32.6%

Revenue / employee₹89.3 lakh

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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

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.

ROCE5.0%

ROE12.4%

Peer median ROE16.5%

What is the outlook?

23 analysts covering the stock expect revenue to grow about 20.3% and earnings to grow about 19.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.3%

Est. earnings growth+19.2%

Analysts23

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 +139% while net margin moved -1% 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+139%

Margin effect-1%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.59 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

83/ 100

Excellent

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

Valuation

64/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

20.0x

3Y Median

31.3x

40 monthly readings · mean 31.3x · range 21.3x–41.3x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 36% below its 3y median of 31.3x. 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 18% above the peer median of 17.0x.

vs. its own history

Cheap

31.3x median over 40 months · -36%

vs. sector peers

Fair

17.0x median of 4 peers · +18%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.0x

P/B

2.65x

EV/EBITDA

32.8x

PEG

0.60

Dividend Yield

0.47%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 20.0x the stock trades 36% below its own median of 31.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 41.7% to 39.9% over 3 years.

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 36% 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.
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?

Margins are being competed away
EBITDA margin has fallen from 41.7% to 39.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 25% a year✓ 33.7% CAGR
Latest reported year was 29.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 38%✓ 39.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 10%✓ 12.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 31.3x✓ 20.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 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

3 good · 5 neutral · 3 weak

Market Cap

₹11,554 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.65x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹55.28

Profitable

Profitable on a per-share basis

ROE

12.4%

Moderate

Moderate capital efficiency

ROCE

5.0%

Weak

Low return on total capital employed

Debt/Equity

2.44x

High

High leverage

Revenue Growth (YoY)

29.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.47%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1,949 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,105

P/E (Forward)

14.1x

Improving

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

Operating Margin

66.0%

Good

Healthy core-business profitability

Net Margin

51.4%

Good

Strong bottom-line conversion

Current Ratio

73.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1127.4 / 1165.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹693 Cr	₹980 Cr	₹1,325 Cr	₹1,656 Cr	+33.7%
EBITDA	₹289 Cr	₹372 Cr	₹451 Cr	₹661 Cr	+31.7%
EBITDA Margin	41.7%	38.0%	34.0%	39.9%	—
PAT (Net Profit)	₹228 Cr	₹306 Cr	₹382 Cr	₹540 Cr	+33.3%
EPS	₹25.2	₹33.67	₹42.07	₹51.59	+27.0%
ROE	12.6%	14.4%	15.2%	12.4%	—
ROCE	5.6%	4.6%	4.4%	5.0%	—
Total Debt	₹4,813 Cr	₹7,302 Cr	₹9,551 Cr	₹10,590 Cr	+30.1%
Free Cash Flow	-₹1,476 Cr	-₹1,916 Cr	-₹2,208 Cr	-₹1,949 Cr	—

🟢 Revenue has grown at 33.7% a year over 3 years.

🟢 EBITDA has grown at 31.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 41.7% to 39.9% over 3 years (-1.8 pts).

🟢 PAT (Net Profit) has grown at 33.3% a year over 3 years.

🟢 EPS has grown at 27.0% a year over 3 years.

🟡 ROE has held roughly flat at 12.4% over 3 years.

🟡 ROCE has held roughly flat at 5.0% over 3 years.

🔴 Total Debt has grown at 30.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15,167 Cr

Total Liabilities

₹10,810 Cr

Total Debt

₹10,590 Cr

Cash & Equivalents

₹449 Cr

Operating Cash Flow

-₹1,940 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

67.3%

Insider Holding

9.3%

Corporate Actions

Dividend Rate

₹5.2

Ex-Dividend Date

29 May 2026

Analyst Consensus

Recommendations

22 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹1,427.3

+29.2% vs CMP

Target Range

₹1,002 – ₹1,674

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

3 mixed3 general

Home First Finance Company India Ltd. Share Price Live Today

CNBC TV18, 16 Oct

Home First Finance Co Nine Monthly results

The Economic Times, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Does Home First Finance Company India (NSE:HOMEFIRST) Deserve A Spot On Your Watchlist?

Simply Wall Street, 29 Sept

Home First Finance Company India Ltd is Rated Hold

MarketsMojo, 16 Oct

Home First Finance Company India Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

HOMEFIRST Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

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

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive10.7/15

🟡RiskModerate5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 25% a year33.7% CAGR
✓EBITDA margin holds above 38%39.9%
✓Return on equity stays above 10%12.4%
✓Valuation vs its own median of 31.3x20.0x today