This Housing Finance Stock Is A Hidden Gem; Analysts See Big Gains By Mid-2026

Can Fin Homes Ltd, a housing finance company in the BFSI sector, could jump 10% from the current market price to a target price of Rs 957 in a time horizon of 6-9 months. According to Axis Securities' research analysts, the company will reach its target price primarily due to enhanced growth visibility in key markets, pristine asset quality with credit costs remaining benign, and a good margin trajectory to continue.

Why Buy Can Fin Homes Shares?

As per the research analysts of Axis Securities, here are the key reasons behind buying the shares of Can Fin Homes.

Key States Showing Signs of Recovery

• CANF's key states- Karnataka (KA) and Telangana (TL) are seeing gradual signs of revival, particularly in KA.
• Management expects the monthly disbursement run-rate in KA to improve from Q3 onwards and scale up to a Rs 300 Cr/month disbursement run-rate in Q4.

Growth Momentum on an Upward Trajectory

• CANF continues to see strong growth in the Eastern and Northern States at 30%+, while TN and Western states deliver strong growth of 25%.
• CANF expects to accelerate AUM growth to 15% over FY27/28E.

Margin Guidance Revised Upwards

• CANF has been able to manage CoF better owing to its transition from MCLR-linked loans to EBLR-linked loans.
• The company does not intend to tinker with the rates and could consider a 10 bps reduction contingent on another 25 bps repo rate cut. CANF has guided for Spreads/NIMs 2.75/3.75% for FY26.

Can Fin Homes Outlook & Valuation

"We expect RoA/RoE delivery of 2.2-2.3%/16-18% over FY27-28E, driven by (i) Improved growth visibility, (ii) Healthy NIM profile, and (iii) Controlled credit costs backed by stable Asset quality. We expect CANF to deliver a healthy AUM/NII/Earnings growth of 15/13/12% CAGR over FY26-28E. Valuation: Trading at 1.7x FY27E BV," said the research analysts of Axis Securities.

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