Earnings in line despite NIM compression; BT-outs moderate

Company
23 Jan 2024
5 Min read 
  • Home First Finance reported 3QFY24 PAT growth of 35% YoY, in line with expectations.
  •  NII rose 21% YoY, while non-interest income jumped 140% YoY.
  •  Opex grew 38% YoY, but credit costs remained in line with expectations.
  •  The company is focused on expanding its distribution network and improving underwriting capabilities.
  •  Asset quality remains stable, with a marginal improvement in GS3 and stable NS3.
  •  The company aims to achieve an AUM of INR 200 billion by FY27.
  •  Valuations are attractive, with a P/E ratio of 29.2x and a P/BV ratio of 4.2x.
  •  The stock is rated as a "Buy" with a target price of INR 1,180.
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