Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Capital Markets

<ul>
<li>This Insight focuses on PSU owned Housing Finance companies - <a href="https://www.smartkarma.com/entities/pnb-housing-finance-ltd" target="_blank" data-smartkarma-citation="entities:23613:1" rel="noopener">PNB Housing Finance Ltd (PNBHOUSI IN)</a> , <a href="https://www.smartkarma.com/entities/lic-housing-finance-ltd" target="_blank" data-smartkarma-citation="entities:15667:1" rel="noopener">LIC Housing Finance (LICHF IN)</a> and <a href="https://www.smartkarma.com/entities/can-fin-homes-ltd" target="_blank" data-smartkarma-citation="entities:17447:1" rel="noopener">Can Fin Homes (CANF IN)</a>. </li>
<li>PNB Housing aims to focus on affordable housing, LIC Housing Finance is possibly struggling due to its size and a conservative risk appetite.</li>
<li>Can Fin Homes exhibits some serious questions regarding its internal controls and underwriting policies.</li>
</ul>


This Insight focuses on PSU owned Housing Finance companies - PNB Housing Finance Ltd (PNBHOUSI IN) , LIC Housing Finance (LICHF IN) and Can Fin Homes (CANF IN). 
PNB Housing aims to focus on affordable housing, LIC Housing Finance is possibly struggling due to its size and a conservative risk appetite.
Can Fin Homes exhibits some serious questions regarding its internal controls and underwriting policies.


Narrative and Numbers | Housing Finance - PSUs | FY24

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.

Equity Bottom-Up

<ul><li>Operational Performance: CANF’s disbursement growth was weak and de-grew by 6/30% YoY/QoQ.</li><li>AUM growth was slowest in 12 quarters, registering a growth of ~9/2% YoY/QoQ (vs our expectation of 11% YoY growth).</li><li>The share of salaried to self-employed customers stood steady at 72:28, flat QoQ.</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.

Operational Performance: CANF’s disbursement growth was weak and de-grew by 6/30% YoY/QoQ.AUM growth was slowest in 12 quarters, registering a growth of ~9/2% YoY/QoQ (vs our expectation of 11% YoY growth).The share of salaried to self-employed customers stood steady at 72:28, flat QoQ.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. - Growth Recovery in Sight, Maintain BUY!

External broker reports(aggregated public sources), Sharekhan

Sharekhan

Sharekhan is India's leading broking house providing services from easy online trading, research to wide array of financial products. 

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>The company is confident of recouping growth as most of the internal systems and processes have been streamlined.</li><li>It is guiding for loan growth of 15% in FY25 and 18-20% from FY26 onward driven by pick up in disbursements growth led by branch expansion and productivity underwriting higher ticket-size home loans as demand is tepid in ticket size lower than Rs. 20 lakh and</li><li>c) Partnering with builders where projects are approved project financial (APF) by other large lenders so that it can source small-project loans.</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.

The company is confident of recouping growth as most of the internal systems and processes have been streamlined.It is guiding for loan growth of 15% in FY25 and 18-20% from FY26 onward driven by pick up in disbursements growth led by branch expansion and productivity underwriting higher ticket-size home loans as demand is tepid in ticket size lower than Rs. 20 lakh andc) Partnering with builders where projects are approved project financial (APF) by other large lenders so that it can source small-project loans.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 - Strong RoE to Sustain, Growth to Pick Up

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and 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>Motilal Oswal's research report onCan Fin Homes CANF’s 4QFY24 PAT grew 26% YoY to ~INR2.1b (in line) and NII grew 25% YoY to INR3.3b (in line).</li><li>FY24 PAT rose 21% YoY to INR7.5b and the company reported FY24 RoA/RoE of 2.2%/18.8%.</li><li>Opex grew 39% YoY to INR 720m (39% above MOFSLe).</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.

Motilal Oswal's research report onCan Fin Homes CANF’s 4QFY24 PAT grew 26% YoY to ~INR2.1b (in line) and NII grew 25% YoY to INR3.3b (in line).FY24 PAT rose 21% YoY to INR7.5b and the company reported FY24 RoA/RoE of 2.2%/18.8%.Opex grew 39% YoY to INR 720m (39% above MOFSLe).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 - In Line Earnings; Disbursements Muted but Picking up Pace

<ul><li>CANF’s disbursement de-grew by ~9% YoY but grew by ~23% QoQ. AUM growth was slowest in 11 quarters, registering a growth of ~11/3% YoY/QoQ.</li><li>Slower operating performance was on the back of process revamping and upgrades. The share of salaried customers remained steady at ~72%.</li><li>CANF will focus on pursuing growth in the SE&amp;P segment while maintaining a mix of Salaried and SE&amp;P at 70:30.</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.

CANF’s disbursement de-grew by ~9% YoY but grew by ~23% QoQ. AUM growth was slowest in 11 quarters, registering a growth of ~11/3% YoY/QoQ.Slower operating performance was on the back of process revamping and upgrades. The share of salaried customers remained steady at ~72%.CANF will focus on pursuing growth in the SE&amp;P segment while maintaining a mix of Salaried and SE&amp;P at 70:30.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. - Growth Recovery Slower than Expected!

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)

Narrative and Numbers | Housing Finance - PSUs | FY24

PNB Housing focuses on affordable housing, LIC Housing Finance struggles with size and risk appetite, Can Fin Homes faces questions on internal...

Pranav Bhavsar

Can Fin Homes Ltd. - Growth Recovery in Sight, Maintain BUY!

CANF’s disbursement growth was weak and de-grew by 6/30% YoY/QoQ. AUM growth was slowest in 12 quarters, registering a growth of ~9/2% YoY/QoQ (vs...

Axis Direct

Can Fin Homes Ltd - Strong RoE to Sustain, Growth to Pick Up

The company is confident of recouping growth as most of the internal systems and processes have been streamlined. It is guiding for loan growth of...

Sharekhan

Can Fin Homes - In Line Earnings; Disbursements Muted but Picking up Pace

Motilal Oswal's research report onCan Fin Homes CANF’s 4QFY24 PAT grew 26% YoY to ~INR2.1b (in line) and NII grew 25% YoY to INR3.3b (in line).

Motilal Oswal

Can Fin Homes Ltd. - Growth Recovery Slower than Expected!

CANF’s disbursement de-grew by ~9% YoY but grew by ~23% QoQ. AUM growth was slowest in 11 quarters, registering a growth of ~11/3% YoY/QoQ.

Axis Direct

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