Motilal Oswal Financial Services (MOSL) has reiterated its ‘Buy’ call on Home First Finance Company, setting a target price of ₹1,250, which indicates a 25% upside from its current market price (CMP) of ₹1,003. The brokerage remains optimistic about the company’s strong asset quality, growth in the affordable housing segment, and professional management outlook.
Key Takeaways from Management Meeting:
- Stable Asset Quality:
Home First’s management reported no spillover stress from microfinance or short-term personal loans (STPL), maintaining stable asset quality in its portfolio. - Strong Demand in Affordable Housing:
Demand remains robust, particularly in the self-construction affordable housing segment, which continues to be a key driver of growth. - Growth Strategies:
- The company plans to penetrate deeper into its existing states and improve the proportion of Loan Against Property (LAP) in its loan mix.
- These strategies are aimed at achieving desired spreads and expanding its market presence.
- Professional Management Transition:
Over the next 12-24 months, Home First is expected to transition into the first new-age affordable housing company without a promoter, becoming a fully professionally managed entity.
With strong demand in the affordable housing segment and strategic focus on penetrating deeper markets, Home First is well-positioned for long-term growth. The company’s stable asset quality and innovative management structure further add to its appeal as a robust player in the housing finance sector.
Disclaimer: This article is for informational purposes only. Please consult a certified financial advisor before making any investment decisions.