Canfin homes ltd

Thanks, Santosh. Hope they make a good decision soon.

I was googling ā€˜home loanā€™ and clicked the 1st link that came up for comparison between different banks/NBFCs -

https://www.bankbazaar.com/home-loan.html

CanFinā€™s customer rating is the best (average rating : 4 out of 5) but many other players are giving better rate of interest. Is the company looking to reduce the lending rate because otherwise people may opt for other options?

Disc: was invested but booked out a few months back.

1 Like

On one end of the lenders, we have topline banks and HFCs like HDFC etc which lend to the buyers who have good credibility to pay back. This is a very competitive end (all the upper and higher middle income persons as an example). On the other end are HFCs like Gruh and Repco who specialize in lending to low income group people. Canfin operates somewhere in between (more closer to the topline banks side). They lend to salaried class who for some reasons could not get a loan from a bank. An example could be the location, builder and such of a property that doesnā€™t meet the criteria of a normal bank. Hence they charge a little extra than normal banks would do.

1 Like

Makes sense. Thanks for the reply. Lenders these days are looking to increase retail loansā€™ %age in their overall loanbook and there could be increased competition and lenders easing their criteria for lending. Plus comparison between various lenders is very easy to make (just by googling). maybe canfin will get a lot more business if they move slightly lower (near 9.5%).

Actually, they are mostly moving towards to the other end i.e., to lend more to the non-salaried class and also provide non-housing loans to get a higher yield.

I read big IPO of pnb housing finance is coming soon.
3 I banker has been identified.
This may help re rating of HFCs like it happened in MFI case.
Does any body has any details of price n valuations ?

Cost of Debt for Can Fin Homes is 8.75 % for FY 16.

The same for HDFC is 8.93 %.

Surprise to see market leader HDFC having higher cost of borrowing than Can Fin.

1 Like

jshah,
You also need to compare the tenure of debt.

4 Likes

GREAT TIME FOR TRUE INVESTORSā€¦ ANNUAL REPORT 2015-2016 RELEASEDā€¦ GOING THROUGH ITā€¦ intresting insights are welcome

Thanks for notificationā€¦here is the link for AR
http://www.canfinhomes.com/Announcements/160620020833_Annual%20Report%202015-16.pdf
but still have not received same via email :frowning:

even i haveā€™nt recieved the mailā€¦ i downloaded from website onlyā€¦ anyways you will get a hard copy.

Banks v/s NBFCs (share of credit)ā€¦ Interesting insight & trendā€¦

Source: Can Fin AR FY16 (good read) - Canfin Homes | error page

1 Like

7th pay commission if gets approved tomorrow by cabinet will help can fin in a big way
Also most of its customers are psu staff/employees which wil help in inc in demand or loan growth

2 Likes

Agreed santosh ā€¦From earlier pay commissions , it was seen that affordable housing in Tier1 and Tier2 cities , consumer durable ,two wheeler auto makers benefited most because 80% of the Government employees stays in Tier 1 and Tier 2 cities . Hence 7th pay commission is positive for the affordable housing finance companies.

1 Like

I think many hfc jumped today bec of this only like lic, gic gruh hfc etc

MD of Canfin Homes & Repco Home together in a chat about 7th pay commision with CNBC TV18. Not much additional information comes out thoughā€¦

This is a very generic observation, which may not add much value to the topic in hand.

But for whatā€™s worth, I have not seen any advertisements of Canfin or Dewan in newspapers, hoardings, billboards, TV in eastern India. The most prominent HFC that I often see is LIC Housing finance, apart from banks like HDFC, SBI, Axis and such.

That led me thinking, is the business of canfin and similar HFCs, limited to certain parts of the country? Or are they planning to expand into new territories? I havenā€™t followed the stock and their expansion into newer markets, but maybe someone who is more versed, knows the answer.

Canfin homes Q1 results on July 14th. This is one week in advance to the norm and comes even before Gruh.

4 Likes

This may be possibly due to better than expected numbers this quarter :grinning: