Canfin homes ltd


Canfin has revised the lending rates for individual home loans again effective Aug 1, where the rates start from 8.5% (affordable housing rates - GRHS / LUH etc at 8.25%)
The lowest rate from a bank is 8.35% from SBI I guess, so the rates offered by Canfin is almost competing that of the rates from the banks. Heavy competition I guess.


Can anyone let me know how to calculate pre-closure rate / date? What is the rate for canfin in the first quarter?


I think that loan book size would be 100 crs. In this example, 1100 crs of sanctions have not been added to the loan book yet.

(Furkan Alam) #1005

(ramanhp) #1006

I happened to visit Canfin homes branch at Cunnigham road, Bangalore. The office has all the vibes of a government office with an indifferent staff. I had walked into the office to enquire for a home loan that my cook is seeking to take. After some waiting, a staff gave me some details. I was surprised that they were least interested in a possible customer. I was given a check list and that is all. No one asked for my contact details for follow up.
This may be a one off case and I don’t want to extrapolate it to such a well run company as Canfin but I was a bit disappointed nevertheless.

Disc: Invested from lower levels.

(Sarabjeet Singh) #1007

Even I had heard similar stuff from one of my friend few months ago. I kept wondering with this attitude if they are doing so well then it can do wonders if they start behaving like private NBFCs.

Another issue I observed was there investor relations. They never respond to your emails.

Disc : Had sold my holdings at ~3000 and re-entered recently at 2730.

(ramanhp) #1008

The staff did see to be knowing what they doing but was not very enthusiastic about a walk-in customer. Even Canfin’s website is not friendly to an exploring customer. I feel they lack in a friendly interface(both physical and virtual) and not tech savvy at all.
Unrelated though, gonna check the PNB Housing finance who just opened up a new branch in Indira Nagar, Bangalore.

(Prasad India) #1009

Good initiative Mr RAMAN. To judge the management you should not visit the office of CMD rather you should see the front office or his factory. The culture created reflects the mgmt.

(Korev2004) #1011

is the good part of this story of this stock is completed

(aditya modi) #1012

My thoughts based on what I witnessed in Bangalore.
Most properties are partly legal-system of A-Khata and B-khata here. Usually PSUs hate to touch these properties which dont have complete paper work. and in Bangalore, most of the properties here are without complete paper. THats why you see housing loans mostly provided by private players.

(Sarabjeet Singh) #1013

I was trying to find some info around when are they going to announce split date. Did anyone get a chance to talk to Investor Relations and have some info ?


A general question about recovery of loan amount due to defaulting. I see this notice in Canfin website -

Here the company demands the customer to pay 57 Lakhs + future interest. And the reserve price for selling the property is 1.1 Crores. If they sell at 1.1 Crores, will the company take the entire proceeds OR will only take 57 Lakh + interest / charges and give the balance to the customer who has taken and defaulted on the loan?


I would think that the recovery by lender can only be up to the amount outstanding. So, the balance money from sale would be repaid to the borrower.

(us121) #1016

Yes, this is only the logical thing to happen.
It is a mechanism to collect due and all procedural expenses while doing so.

Certainly additional profit making can not be an intent.

(ramanhp) #1017

We wish to inform that the Company has fixed 13/10/2017 (Friday) as Record Date for the purpose of Sub-Division/ Split of equity shares of Rs.10/- each (fully paid up) into 5 (five) equity shares of Rs.2/- each (fully paid up).


So, on Oct 13, our shares get split - 1X shares become 5X on that day?

(Sarabjeet Singh) #1019

@newone Yes, your statement is correct.

I am hoping this split may give a much needed trigger to shed the weakness which has engulfed stock price.

(JKS) #1020

The fall has been relentless for last 3 months and things are going one way only. Look at PNB H - it did a smart recovery in 1 day, to arrest the fall. I know that rights issue is also around, along with the split but still can’t fathom the reason for this big downswing. Any insight is welcome

(ramanhp) #1021

Canfin should be on close watch for investor cause there are signs of NPA increase and falling growth. Housing Finance is a very crowded space today and more are knocking the door. How far Canfin can manage the competition is to be seen. It surely has an early mover advantage and is well placed in its territory. How much can it leverage big data and technilogy for the next leap needs to be seen. I have no information on that but I didnt see that happening with Canfin either.
Regarding the stock price, once has to remember that is has run up too much too soon. And it might be undergoing what some will call a Time correction.


Key factors to watch in 2Q are:
a) Net profit growth (minimum expectation is 40% growth YoY - so Rs. 77 Crores at least)
b) Loan book growth (should grow from 13800 to 14600 - 14800 at least)
c) NPA (should come down from Q1 numbers but little difficult to predict for this quarter)
d) Forward looking statements about impact of RERA, GST & any lingering impact of demonetization