Excellent numbers.
But see the effects of equity dilution:-
PAT Growth 90%
Earnings Growth 47%
Still can’t argue with the growth numbers though 
Happily invested
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Hi Gurjot,
I think in my limited understanding earnings growth of 47% should be called as effects of Equity Share Capital Expanding and not of Equity Dilution. Equity dilution means reduction in the proportionate holding of a shareholder as a result of company issuing additional shares to others, say for e.g. effect of conversion of warrants issued to promoters.
Canfin had issued rights and hence I think this should not be called as equity dilution 
Regards.
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Q2FY16 Investor presentation for CanFin has been uploaded on the website - http://www.canfinhomes.com/Can%20Fin%20Homes%20-%2030-09-15.pdf
Great performance backed by expanding NIM’s – increased to 3.1% in Q2FY16 from 2.4% in Q2FY15 (3.04% in Q1FY16);
Loan book has jumped 30% to 9300 crore compared to Q2 last year (7000 crore)
Also good to see that rapid growth is not at the cost of asset quality - GNPA is under control at 0.26% and NNPA is almost nil.
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Article mentions rights issues dilute the value of each share of the company. Wikipedia mentions a broader definition of equity dilution is any activity that reduces the per share value of the company.
Anyway, the technicality is not important. Was your point on trying to correct the words I’ve used or that markets view rights issue / equity share capital expansion / other forms of equity dilution separately, hence different valuations may be granted based on equity capital expansion / equity dilution?
My post was just to kind of say that there is no negative effect as a result of equity share capital increasing in this case, and less earnings growth of 47% as compared to PAT growth of 90% doesn’t actually make any difference. And also that equity dilution I thought may not be the right word to use in this case.
Rights dilute value of each share of the company (including promoter’s share) and hence existing shareholders are not losing out on earnings as they receive proportionate allocation of extra shares that are issued. Where as in something like e.g. of warrants given above the earnings in the hands of existing non-promoter shareholders is getting reduced.
Markets in anycase, as we all know definitely views frequent equity dilutions as negative.
Regards.
Hello everyone ,
Is the net and gross npas anything to worry about ?
Disc invested from lower levels
C Ilango’s interview on Q2 results:-
Love his accent/mannerisms while speaking
@Longterm He said the asset quality is seasonal for most HFCs and should further improve in the next 2 quarters as the year ends.
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Till date since many quarters canfin has beaten all other HFC gruh and repco included in terms of growth and asset quality.
Can it get another bout of re rating to get closer to gruh is a question that needs to be answered. For that it will need some bump up in return ratios first.
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Hiteshbhai good question . please elaborate more on ways that can be achieved( enhanced return ratios ) .
My opinion is that they have very few levers(they are already using CP funding ) and it will be very difficult to change the culture of company. they can (should ?) not go into non salaried class where yield is higher but you need better risk management & customer creditworthiness check are difficult.
so now stock price growth may be some re-rating (if any left) + annual business growth (which is not bad )
your view will be awaited …
Another HFC, which is even faster growing than can fin plans for an IPO
ie PNB housing finanace, it is growing really gud, with low NPA, better brand name etc.
Even we have their numbers discussed in past in this thread.
So, how will this impact can fin during listing time ?
dpnds they come with which valuations ?
can this lead to some rerating again ? wishful thinking
rgds
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Hitesh Sir, I want to know industry average under following metrics for Housing Finance Industry: EPS, Book Value, PE Ratio, PB Ratio and Market Cap. This will help me as I am preparing for PPT on these topics.
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Dear GKNRAO,
No offence, but if you are preparing a presentation on the Housing Finance sector, it would be better to go through the companys’ websites and compile the information. It could help you get a better understanding of the sector as you read and try to dig out the information, and who knows, perhaps you may stumble onto some insight/observations which could lead to a better presentation.
Apologies for butting in like this.
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Could you let us know where you have found the financials of PNB Housing FInance?
It came in ET day before yesterday full page, I think they are preparing
before their IPO
Hi Amitayu,
PNB housing on its website provides annual reports for last 5 years which are an excellent read and provide detailed analysis of the sector and company.
www.pnbhousing.com/about-us/financial-highlights/
PNB Housing is the fastest growing HFC and has been growing even faster than canfin over the last few years with loan book rising from 3000 crores in 2012 to 22000 crore currently at a CAGR of 60% plus.
Immense potential now given that Carlyle fund recently bought a significant equity in the business - Carlyle were early investors in both HDFC and Repco housing - both of which they made an excellent return…
Check their H1FY16 outstanding performance - www.pnbhousing.com/wp-content/uploads/2014/12/H1-Results-2015-16.pdf
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Good to see Institutional investors like Creador showing interest in Canfin.
Of late Canfin also has been showcased in quite a few investor/institutional conferences organised by the likes of IIFL, Systemix, Spark Capital, etc.,.
Kind Regards.
Discl: Invested
Where can i find notes about investor meet with “Kotak Securities Ltd.” and “Creador Advisors India Pvt. Ltd.” ? I could not find on canfin site or researchbytes.
Thanks,
Milind
Hitesh, Any possibilities of CanFin trading at par (or even premium) with Repco valuation (either on PE or PB multiple basis). CanFin scores better in many parameters,except return ratios.
I would wish to congratulate @hitesh2710 bhai, for picking another multi bagger in Can fin.
Is already been 7x for him and few others. ( although I entered late)
The story is getting rewarded for 35 % consistent growth with Nil NPA. It still has no institutional holding etc and growth is till intact in a tough market. FY 17 PAT will be optically low as we all know, but mkt also knows and there is a good chance that it may be fairly discounted by mkt by Q1 Fy 17 numbers. To me it looks fairly valued now, it can still be a 25- 30 % compounder from here. triggers to watch out will be if Mr. Illango gets another extension ? entry of some big institutional investor , which can further re rate it, as I think the stock is still fairly illiquid.
So, in this festive mood, we need to celebrate Hitesh bhai ( Our Santa ) stock picking skills and need to learn from him again and again.
Cheers
Santosh
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Does anyone know where to get the Canfin Homes’s Vision 2020 document?