Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Aptus Value Housing Finance India / Equity Capital Markets

Aptus Value Housing Finance (AVHF) raised around US$375m in its India IPO. The company is backed by a host of investors including WestBridge, Malabar Investments, Sequoia, Madison and Steadview.Aptus Value Housing Finance India Limited (AVHF) is a retail focussed housing finance company (HFC) primarily serving low and middle income self-employed customers in the rural and semi-urban markets in India. AVHF was one of the largest HFC’s in South India in terms of AUM, as of Mar 21. AVHF’s net interest income has grown by 38-55% pa over FY18-FY21, while its Pre-provision operating profit has done even better with 40-63% pa growth. Earnings growth has been driven by its rapid loan growth which has been between 28-58% pa over the past three years. Although loan growth has been slowing down and disbursements growth had already declined from 47% YoY in FY19 to just 2% YoY in FY21.We covered the company background in our earlier note, <a href="https://www.smartkarma.com/insights/aptus-value-housing-finance-ipo-valuation-is-too-rich-especially-with-an-over-capitalised-book" target="_blank" rel="noopener">Aptus Value Housing Finance IPO Trading - Valuation is too rich, especially with an over-capitalised book</a>.In this note, we will talk about the deal dynamics.

Aptus Value Housing Finance (AVHF) raised around US$375m in its India IPO. The company is backed by a host of investors including WestBridge, Malabar Investments, Sequoia, Madison and Steadview.Aptus Value Housing Finance India Limited (AVHF) is a retail focussed housing finance company (HFC) primarily serving low and middle income self-employed customers in the rural and semi-urban markets in India. AVHF was one of the largest HFC’s in South India in terms of AUM, as of Mar 21. AVHF’s net interest income has grown by 38-55% pa over FY18-FY21, while its Pre-provision operating profit has done even better with 40-63% pa growth. Earnings growth has been driven by its rapid loan growth which has been between 28-58% pa over the past three years. Although loan growth has been slowing down and disbursements growth had already declined from 47% YoY in FY19 to just 2% YoY in FY21.We covered the company background in our earlier note, Aptus Value Housing Finance IPO Trading - Valuation is too rich, especially with an over-capitalised book.In this note, we will talk about the deal dynamics.

Aptus Value Housing Finance IPO Trading - Remains One of the Most Expensive HFCs

External broker reports(aggregated public sources), Ashika Research

Ashika Research

External broker reports(aggregated public sources)

Equity Bottom-Up

<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ashika - Stock Picks - Can Fin Homes Ltd. - August 2021

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Can Fin Homes (CANF) earnings were in line with cost savings and lower provisions led to PAT growth of 17%/6% YoY/QoQ to Rs 109 Cr. However, loan growth was tepid at 7% YoY and disbursements were down 55% QoQ as the company could conduct its business only for 45 days due to lockdowns in force. NIM came down to 3.3% from ~3.9% on account of the company’s pricing strategy.We revise our rating to BUY from HOLD with a revised target price of Rs 605 (2.3x FY23E ABV).<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

Can Fin Homes (CANF) earnings were in line with cost savings and lower provisions led to PAT growth of 17%/6% YoY/QoQ to Rs 109 Cr. However, loan growth was tepid at 7% YoY and disbursements were down 55% QoQ as the company could conduct its business only for 45 days due to lockdowns in force. NIM came down to 3.3% from ~3.9% on account of the company’s pricing strategy.We revise our rating to BUY from HOLD with a revised target price of Rs 605 (2.3x FY23E ABV).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Can Fin Homes: Margin And Growth Outlook To Improve

External broker reports(aggregated public sources), Edelweiss Broking Limited

Edelweiss

Growth and margin rebound expected; Retain BUY'<div class="content-highlight">Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</div>

Growth and margin rebound expected; Retain BUY'Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Can Fin Homes Ltd Rs Q1FY22 Result Update

Home First Finance / Equity Capital Markets

Home First Finance (HFF) is an affordable housing finance company targeting first time home buyers in low and middle-income groups. The company aims to raise around US$160m in its India IPO. It is backed by True North, GIC and Bessemer and has recently obtained an investment from Warburg Pincus as well.HFF has grown rapidly over the past few years, driven by an expansion in its branch network and large number of new customers. Over FY17-20, HFF’s loan grew at a CAGR of 62%, while its earnings grew even faster with NII growing at 68%, PPoP at 117% and PAT at 128% CAGR.  It still remains largely focussed on housing loans and has pristine asset quality.However, its funding sources lack diversity and its margin is artificially inflated by its high capitalisation. Furthermore, the company talks a lot about tech but a lot of its functions appear to be still very contact heavy and hence, salesforce/customer service dependent.I have covered various aspects of the deal in my earlier notes,  <a href="https://www.smartkarma.com/insights/home-first-finance-pre-ipo-riding-on-affordable-housing" target="_blank" rel="noopener">Home First Finance Pre-IPO - Riding on affordable housing</a> and <a href="https://www.smartkarma.com/insights/home-first-finance-pre-ipo-earnings-not-showing-the-covid-strain-but-other-metrics-are" target="_blank" rel="noopener">Home First Finance Pre-IPO - Earnings not showing the COVID strain but other metrics are</a>.In this note I’ll run the deal through our ECM framework and talk about recent updates.

Home First Finance (HFF) is an affordable housing finance company targeting first time home buyers in low and middle-income groups. The company aims to raise around US$160m in its India IPO. It is backed by True North, GIC and Bessemer and has recently obtained an investment from Warburg Pincus as well.HFF has grown rapidly over the past few years, driven by an expansion in its branch network and large number of new customers. Over FY17-20, HFF’s loan grew at a CAGR of 62%, while its earnings grew even faster with NII growing at 68%, PPoP at 117% and PAT at 128% CAGR.  It still remains largely focussed on housing loans and has pristine asset quality.However, its funding sources lack diversity and its margin is artificially inflated by its high capitalisation. Furthermore, the company talks a lot about tech but a lot of its functions appear to be still very contact heavy and hence, salesforce/customer service dependent.I have covered various aspects of the deal in my earlier notes,  Home First Finance Pre-IPO - Riding on affordable housing and Home First Finance Pre-IPO - Earnings not showing the COVID strain but other metrics are.In this note I’ll run the deal through our ECM framework and talk about recent updates.

Home First Finance IPO - It’s Not Really Cheap, Banking on Momentum

India

Can Fin Homes Ltd provides housing finance.  The company offers long term housing loans to middle and lower income individuals or corporate bodies for construction and acquiring houses/flats.

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Can Fin Homes (CANF IN)

Aptus Value Housing Finance IPO Trading - Remains One of the Most Expensive HFCs

Aptus Value Housing Finance (AVHF) raised around US$375m in its India IPO. The company is backed by a host of investors including WestBridge,...

Sumeet Singh

Ashika - Stock Picks - Can Fin Homes Ltd. - August 2021

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general...

Ashika Research

Can Fin Homes: Margin And Growth Outlook To Improve

We revise our rating to BUY from HOLD with a revised target price of Rs 605 (2.3x FY23E ABV). Can Fin Homes (CANF) earnings were in line with cost...

Axis Direct

Can Fin Homes Ltd Rs Q1FY22 Result Update

Growth and margin rebound expected; Retain BUY'

Edelweiss

Home First Finance IPO - It’s Not Really Cheap, Banking on Momentum

Home First Finance is an affordable housing finance company aiming to raise around US$160m in its India IPO. It is backed by True North, Warburg,...

Sumeet Singh

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