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.
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.