Shares of Can Fin Homes, a Canara Bank-backed housing finance firm, experienced a decline in the post-market trading hours on Wednesday, following the announcement of its Q2 results. The company's shares traded at ₹757.25 on the National Stock Exchange, marking a 1.43% drop from the previous close.
The quarterly report revealed an 11.5% year-over-year (YoY) increase in net profit, reaching ₹158 crore. This exceeded estimates by 7%, attributed to a higher net interest margin and a lower effective tax rate. The company's outstanding loan book expanded by 16% YoY to ₹33,359 crore (INR100 crore = approx. USD12 million) with a client base of 2.53 lakh, with salaried professionals making up 72% of the clientele.
However, the report also highlighted an increase in gross non-performing assets (GNPAs) and net NPA, which rose to 0.76% and 0.43%, respectively, fueling concerns over bad loans.
Despite these mixed results, several prominent financial institutions have maintained their positive outlook on Can Fin Homes. Morgan Stanley (NYSE:MS) issued an "Overweight" call on the company's stock, while Prabhudas Lilladher recommended a "Buy" rating with a target price of ₹900. Another undisclosed source has set a target price of ₹1,000 per share for the company.
The company is scheduled to conduct an earnings call later today to provide further insights into its performance and strategies.
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