Futurecaps Clients Gain 30X from Mazagon Dock – What Lies Ahead?
Clients of Futurecaps enjoyed 30X multibagger gains in Mazagon Dock along with 12X in Cochin Shipyard. What’s next? – Check out what’s coming up in our research pipeline.
New Multibagger – 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 provides lending solutions like personal, education, and pensioner loans while mobilizing deposits.
The company operates in three key segments: Housing Finance, Non-housing Finance, and Deposits. The average loan ticket size is ?18L in housing, ?9L in non-housing finance. It also raises funds via deposits regulated by the National Housing Bank.
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.
Core Offerings
• Housing Finance
• Non-Housing Finance
• Deposits
Positives
• 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.
Challenges
• 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 liquidity and funding risks.
Stock Analysis at a Glance
• Economic Moat multibagger stocks – Moderate
• Growth – Good
• Valuation – Good
• Debt – High
• Integrity – Moderate
Summary
The company has the potential to deliver multibagger returns in the order of 300–500% over the next 5–10 years. Check our detailed research note for complete reasoning.
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