The Stratzy Report: Buy Home First Fin Co Ind - October 17

On October 17, Stratzy issued a buy call for Home First Finance Company India Limited (Home First Fin Co Ind) at the current market price of Rs 1230.1. The target price set by Stratzy for Home First Fin Co Ind is Rs 1310. This recommendation implies a potential upside of approximately 6.5% in the stock's value. The call is based on an analysis of the company's financial performance, market dynamics, and industry outlook.

About Home First Fin Co Ind:

Home First Finance Company India Limited (Home First) is a housing finance company based in Mumbai, India. It offers affordable housing loans to low- and middle-income customers in peri-urban and rural areas. The company's primary focus is on first-time homebuyers and self-employed individuals. As of March 31, 2022, Home First had a loan portfolio of over ₹6,000 crore, with a presence in 12 states and union territories across India. The company is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

52 Week Price Trend:

Home First Fin Co Ind is currently trading at Rs 1230.1, which is significantly higher than its 52-week low of Rs 654.6. The stock has had a strong run-up in recent months, driven by positive sentiments around the housing finance sector and the company's own strong financial performance. However, it is important to note that the stock is trading at a premium to its book value and may be due for a correction. Investors should exercise caution before investing in the stock and consider factors such as the company's earnings growth, asset quality, and competitive landscape.

Stratzy's MOST Analysis:

Stratzy's MOST framework has assigned HOMEFIRST an AA- rating. This signifies medium fundamental risks, with the assessment based on four pillars: Management, Outlook, Safety, and Trend. The AA- rating indicates that HOMEFIRST performs well across these pillars, exhibiting strengths in management capabilities, a positive outlook, adequate safety measures, and a favorable stock price trend. Investors and analysts can use this rating as a reference point when evaluating the potential risks associated with investing in HOMEFIRST.

Company's Fundamentals:

Home First Fin Co Ind (NSE: HOMEFIRST) is currently trading at a Stock PE of 28.69, indicating that investors are willing to pay 28.69 times the company's annual earnings per share. The company's PB Ratio of 4.21 suggests that investors are paying 4.21 times the company's book value per share, indicating that the stock is currently trading at a premium to its book value. The Dividend Yield of 0.28% indicates that investors can expect to receive an annual dividend of 0.28% based on the current share price.

Fundamental and Technical information provided in this blog were last updated on 17 Oct, 2024

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