Brokerage firm Mirae Asset Sharekhan has maintained its ‘buy’ call on NBFC stock Can Fin Homes, with a target price of ₹954 per share, valuing the stock at 1.6x FY28E P/BV.
The brokerage firm said that it expects RoA and RoE at 2.4% and 17.2% for FY2028, adding that sharp rise in the interest could impact volume.
Can Fin Homes Q2 results 2026 review
According to the brokerage firm, Can Fin Homes reported a slightly better-than-expected performance, with profit after tax (PAT) rising 9.2% year-on-year (YoY) and 2.5% quarter-on-quarter (QoQ) to ₹275 crore.
The growth in profitability came despite pressure on margins, indicating resilience in the company’s earnings performance during the quarter.
The company’s net interest margin (NIM) declined 12 basis points (bps) YoY and 2 bps QoQ to 3.96% of assets under management (AUM), primarily due to higher borrowing costs. The contraction in margins remains a key factor to monitor, as elevated funding costs can weigh on profitability even when overall earnings continue to grow.
Meanwhile, disbursements fell 6.8% YoY and 9% QoQ, partly due to the migration of around 157 branches to the company’s new technology platform. Can Fin Homes expects disbursement momentum to improve in the second half of FY27 (H2FY27), with the recovery in business activity likely to be an important factor in its growth outlook.
Can Fin Homes reported a 9.8% YoY and 1.3% quarter-on-quarter increase in assets under management (AUM) to ₹43,539 crore. The annualised run-off in advances declined to around 16.7%, compared with 17.6% in Q1FY27 and approximately 17.1% in Q2FY26, indicating an improvement in portfolio retention.
However, disbursements fell 6.8% year-on-year and 9% quarter-on-quarter, primarily due to the migration of around 157 branches to a new technology platform.
Can Fin Homes share price performance
Can Fin Homes shares have gained 1.63% over the past week, indicating a modest recovery in the near term. However, the stock has remained under pressure over the past month, declining 6.28%.
On a year-to-date (YTD) basis, Can Fin Homes shares have fallen 21.03%, reflecting a significant decline in their market value so far this year. The stock has also dropped 8.35% over the past year, indicating continued weakness in its performance over the 12-month period.
Over a three-year period, the stock has declined 1.51%, however, its five-year performance remains marginally positive, with gains of 5.15%.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
