Shares of Can Fin Homes Ltd. fell over 3% to Rs 735.10 in early trade on April 24 despite reporting a steady financial performance for Q4 FY25. The decline surprised investors, especially after Morgan Stanley maintained an overweight rating on the stock with a target price of Rs 800, following stronger-than-expected profit figures.
Q4 FY25 financials beat estimates, but stock dips
Can Fin Homes reported a 12% year-on-year rise in net profit to Rs 234 crore, up from Rs 209 crore in Q4 FY24. Sequentially, profit grew by 10%. Pre-provision operating profit (PPOP) rose 8% YoY to Rs 295 crore, 1% above estimates, while net interest income (NII) climbed 6.4% YoY to Rs 349 crore.
Disbursements stood at Rs 2,455 crore, up 31% QoQ and 6% YoY, in line with guidance. However, despite the beat, the market appears to be reacting cautiously to management commentary on FY26 loan growth, which Morgan Stanley flagged as a key factor to monitor.
Asset quality remains stable, dividend announced
The company reported improvement in asset quality. Gross NPA ratio declined to 0.87% from 0.92% in Q3, while net NPA ratio (excluding management overlay) improved to 0.46% from 0.50%.
The Board declared a final dividend of Rs 6 per share, adding to the interim dividend of Rs 6, totaling Rs 12 for FY25 on a face value of Rs 2.
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