Hot Chips - Stock Recommendations For Your Portfolio
1/10/2013 9:00 PM Thursday
CAN FIN HOMES | NSE CODE: 511196 | Volume: 11522 | CMP: Rs 178
With interest rates slated to come down, financial and banking companies are just waiting to take off. This is very true particularly of companies which are in the home finance segment. Many retail customers have been waiting in the wings to purchase house property. Even a slight reduction in interest rates will put the home loan market once again in the limelight. Companies with a focus on this segment are expected to do well going forward. And this is particularly true of companies like Can Fin Homes which has been aggressively expanding to spread its reach. Since March 2011, it has added 25 branches taking its total network to 66 branches. This means an additional 60 per cent branches in operation than what it had earlier. The branches of the company are strategically located outside cities and serve customers requiring smaller loans below Rs 10 lakh.
These loans are eligible for interest subvention. Further, the company gets refinancing from the National Housing Board at competitive rates due to lending in semi-urban and rural areas. These loans account for about 40 per cent of its loan book. The asset quality of the company is strong. Its gross NPAs were 0.9 per cent and its net NPAs were nil in FY2012. This is mainly due to the strict credit appraisals and efficient recoveries executed by the company. The CAR as of Q2FY2013 is 15.44 per cent against the minimum requirement of 12 per cent. One can look at the scrip from a medium term perspective.
|Last Seven Days’ Volume Table (No. of Shares)|
|31 Dec 12 ||1675 |
|1 Jan 13 ||33086 |
|2 Jan 13 ||70367 |
|3 Jan 13 ||84594 |
|4 Jan 13 ||72027 |
|7 Jan 13 ||36082 |
|8 Jan 13 ||11522 |
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