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Futurecaps Recommends – Can Fin Homes

Can Fin Homes is an established NBFC in the housing finance sector. It mainly caters to salaried professionals from lower and middle segments, in addition to developers and corporates.

Its product portfolio includes: housing finance tailored to individuals, affordable homes, and PMAY-linked borrowers. It also provides loans beyond housing, such as commercial property loans, mortgage financing, rent receivable loans, and top-ups.

For individuals, Can Fin also caters through personal financing options, education loans, pensioner loans, along with accepting deposits.

The company operates in three key segments: Housing Finance, Non-housing Finance, and Deposits. The average loan ticket size is 18 lakh for housing and 9 lakh for non-housing credit. It also mobilizes both fixed and cumulative deposits as per NHB norms.

Headquartered in Bengaluru, Can Fin has a widespread network spanning 205 branches, affordable housing centers, and satellite offices across India. Shri Suresh S Iyer is the current Managing Director & CEO.

Business Segments

• Housing Finance
• Non-Housing Finance
• Deposits

Strengths

• 205 branches across 21 states and UTs, serving diverse geographies.
• Plans to expand network and penetrate new high-potential markets.
• Earnings CAGR of ~17.1% over the last 5 years.
• Intrinsic value estimated above 30%.
• Average borrowing cost at 6.5%, sustaining healthy spreads.
• Loan book crossed ?30,000 crore – strong business growth.
• 27% loan share from self-employed customers (?8,477 crore).
• Attractive valuation: P/E ~15X vs peer average ~24X.
• Better value than Indian diversified financial industry average (28.9X).
• Revenue forecasted at 14.7% growth vs Indian market 9.6%.
• Earnings growth forecast ~13.6%, higher than savings rate.

Risks

• Intense competition from banks and larger HFCs in Tier I & II cities.
• Credit risk due to borrower defaults.
• Macroeconomic factors like inflation, demand-supply, and interest rates can cause free multibagger 2025 liquidity and funding risks.

Warren Buffett Checklist

• Economic Moat – Moderate
• Growth – Good
• Valuation – Good
• Debt – High
• Integrity – Moderate

Final View

The company appears to be a promising multibagger with 300–500% growth potential in 5–10 years. Full details are available in the complete article on our website.

About Futurecaps

Futurecaps is a licensed SEBI Research Analyst delivering investment insights since 2012. We focus on Buffett-style investing, building over 50 multibagger picks. Our pricing is investor-friendly, helping new investors benefit.