Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

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Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


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Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

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Equity Bottom-Up

<ul>
<li>LICHF reported Q3FY23 earnings that was lower than expected due to the increase in provisioning. LICHF reported annualized credit cost of 1.2% vs expected run-rate of &lt;0.5%.</li>
<li>The higher provisioning was done purely from a management overlay perspective for extra caution. It led the PCR to rise to 51% vs 43%+ earlier. </li>
<li>The higher provisioning was not due to asset quality deterioration. In fact, asset quality improved slightly with GNPA at 4.75% vs 4.90% QoQ.</li>
</ul>


LICHF reported Q3FY23 earnings that was lower than expected due to the increase in provisioning. LICHF reported annualized credit cost of 1.2% vs expected run-rate of &lt;0.5%.
The higher provisioning was done purely from a management overlay perspective for extra caution. It led the PCR to rise to 51% vs 43%+ earlier. 
The higher provisioning was not due to asset quality deterioration. In fact, asset quality improved slightly with GNPA at 4.75% vs 4.90% QoQ.


LICHF: One-Off Discretionary Provisioning Impacted Q3FY23, But Q4FY23 Is On Track to Be Strong

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Demand remains healthy despite inflationary pressures – The management stated that the demand in the affordable housing segment continues to remain healthy despite inflationary pressures.</li><li>This reassures the management to achieve a disbursement and AUM growth of 18-20% over the medium term.</li><li>Margins have bottomed out &amp; to improve hereon – The management believes that margins have bottomed out in Q3FY23 and should witness an improvement going forward</li></ul>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.

Demand remains healthy despite inflationary pressures – The management stated that the demand in the affordable housing segment continues to remain healthy despite inflationary pressures.This reassures the management to achieve a disbursement and AUM growth of 18-20% over the medium term.Margins have bottomed out &amp; to improve hereon – The management believes that margins have bottomed out in Q3FY23 and should witness an improvement going forwardContent 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. - New MD CEO Appointment Key Positive, Maintain BUY!

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>CanFin Homes (CFHL) was promoted by Canara Bank in 1987, with ~30% stake as of September 2022.</li><li>The HFC is spread across 204 locations across 21 states and UTs with south contributing ~72% of loans and focus on tier II &amp; III cities.</li><li>Most borrowers are first time home buyers with average age of 35 years.</li></ul>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.

CanFin Homes (CFHL) was promoted by Canara Bank in 1987, with ~30% stake as of September 2022.The HFC is spread across 204 locations across 21 states and UTs with south contributing ~72% of loans and focus on tier II &amp; III cities.Most borrowers are first time home buyers with average age of 35 years.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.

<ul><li>Can Fin Homes’ (CANF) reported a steady performance in Q2FY23.</li><li>However, it was marginally below our estimates with a miss on PAT owing to higher-than-expected provisions.</li><li>The operational performance was robust, driven by sustained growth in AUM (+22% YoY,5% QoQ), stable improved NIMs (+4bps YoY), and stable asset quality.</li></ul>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’ (CANF) reported a steady performance in Q2FY23.However, it was marginally below our estimates with a miss on PAT owing to higher-than-expected provisions.The operational performance was robust, driven by sustained growth in AUM (+22% YoY,5% QoQ), stable improved NIMs (+4bps YoY), and stable asset quality.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 - Steady Performance; Maintain BUY!

<ul><li>Can Fin Homes (CANF) reported strong set numbers in Q4FY22 with the pick-up in loan growth led by higher disbursements, improved NIMs due to higher yields, and robust asset quality</li><li>We remain positive on the stock given its favourable loan mix, comfortable liquidity position, and robust CAR (23.3%)</li><li>We maintain BUY with a target price of Rs 790 (2.5x FY24E BV), implying an upside of 23% from CMP.</li></ul>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 (CANF) reported strong set numbers in Q4FY22 with the pick-up in loan growth led by higher disbursements, improved NIMs due to higher yields, and robust asset qualityWe remain positive on the stock given its favourable loan mix, comfortable liquidity position, and robust CAR (23.3%)We maintain BUY with a target price of Rs 790 (2.5x FY24E BV), implying an upside of 23% from CMP.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: Growth Momentum Strong; Maintain BUY

India

Can Fin Homes is a housing finance company promoted by Canara Bank, focusing primarily on individual housing loans for middle-aged first-time homebuyers in the affordable and middle-income sectors. The company provides housing loans for construction, purchase, and renovation, as well as non-housing loans like mortgage and top-up loans. Headquartered in Bengaluru, Karnataka, India, the company was founded in 1987.

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Can Fin Homes (CANF IN)

LICHF: One-Off Discretionary Provisioning Impacted Q3FY23, But Q4FY23 Is On Track to Be Strong

LICHF reported lower than expected Q3FY23 earnings due to one-off excess provisioning. Despite this, it provides an attractive valuation of <8x P/E...

Ankit Agrawal, CFA

Can Fin Homes Ltd. - New MD CEO Appointment Key Positive, Maintain BUY!

The management stated that the demand in the affordable housing segment continues to remain healthy despite inflationary pressures.

Axis Direct

CanFin Homes (CFHL) - In Sweet Spot

The HFC is spread across 204 locations across 21 states and UTs with south contributing ~72% of loans and focus on tier II & III cities.

ICICI Securities Limited

Can Fin Homes - Steady Performance; Maintain BUY!

The operational performance was robust, driven by sustained growth in AUM (+22% YoY,5% QoQ), stable improved NIMs (+4bps YoY), and stable asset...

Axis Direct

Can Fin Homes: Growth Momentum Strong; Maintain BUY

We remain positive on the stock given its favourable loan mix, comfortable liquidity position, and robust CAR (23.3%) We maintain BUY with a...

Axis Direct

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