Home First Finance Company

I too read that… But what the interest rate they are charging ???. If home finance co lending lend at 9 or 10 how the NIM will playout… Any idea…

You can check the UGRO thread for discussion on the co-lending model, it may help in having a better understanding.

1 Like

Bank will lend to NBFC or HFC which will get 80 of funds from bank and remaining 20% from its own fund… Pricing is upto bank and lending entity … Am i right??
NBFC : Will get lower cost of funds than in market
BAnk: Can meet its priority sector targets…

Please check the latest ConCall.


Good read on home first -

1 Like

Bessemer Capital sold out -

1 Like

Q1 FY 24 Highlights

AUM - 7775.9 cr ( 8% up QoQ and 33% up YoY)

Fresh Disbursements - 895.2 cr (3% up QoQ, 35% up YoY)

Cost to Income - 36%

RoA - 3.9%

PAT - 69 cr

Price to Book

What would be right p/b to consider ??
Home first clicking almost all parameters …
Will growth and NIm sustainable when book size enlarge ??.

My personal range of PB for HFFC is 3-3.5. And if you are willing to buy it, you have to hope that P/B expansion will happen. Otherwise stock price will not return anything beyond 15-16% per year

1 Like

Hi All

Can anybody check Gross Profit on Trading View Chart for HomeFirst; it is showing Rs 150.4M , could you explain where they got this number from.

Note: I checked the earnings ppt

One should be careful in assigning PB to HFC. Earlier in the past they used to trade at crazy P/B and growth was not supporting PB. Pls note that HFC have limited segments to lend Housing + Affordable housing. NIMs are in Aff hsg and this segment is today getting highly competitive with pvt/ psu Banks, NBFC, SFB focussing on this segment. Hence, I think PB to HFC should not be more than 2 if you want to invest for good near term returns. In high Interest regime, NIM’s are under pressure and earnings growth have not been great in june quarter as well for HFC’s.

1 Like

Aavas had a great run…When its loan book gets big the same HF company not looking optimistic as it looks earlier… But how to get good HFC at 2x of PB??

There is only 1 HDFC Limited which has grown large in HFC sector. It gets tough to grow beyond a level in single segment. In financial sector, diversification is the key. Even likes such as Bajaj, Chola are diversified now. Today, there are better opportunities in market as compared to pure play HFC’s as their product portfolio is limited, no fees income, high competition, lower Yield and only advantage-Lower NPA. IMHO, negatives are more as compared to positive. History speaks, pure CV financiers - Shriram, M&M, pure Gold loan financiers-Muthoot, Mannapuram are unable to grow when Banks/Large NBFC’s focus on their segments. Loan book has to be diversified for any Financial institution to become big.

I hold a different perspective. In my view, a business’s growth should primarily depend on the available market and its growth potential, rather than the degree of diversification it possesses. Specifically, I strongly believe that the affordable housing loan market represents a substantial and continuously expanding opportunity.

The negatives you mentioned about the business not diversifying into other sectors do not concern me. I do not see it as a negative factor. I believe that instances where growth has tapered off in other businesses were primarily due to the limited size of the addressable market, rather than being a consequence of focusing on a single area of expertise.

For me, what truly matters is that a company excels in its core area and remains focused on a large market. I am confident that this approach will yield positive outcomes for investors. As an investor myself, I prefer to have holdings in specialized financial players, each focused on different businesses, as a means to achieve diversification. For instance, one of the players in my portfolio is Ugro Capital focused on another larger addressable market of MSME lending. This way, I aim to spread risk and capture opportunities across various sectors, rather than investing in a single company involved in multiple businesses.


areyou still tracking home first?

Anybody still tracking Home First?? It’s peer Aavas Financiaries has recently given a breakout after a very long time. I think it would be worthwhile to reveist Home First once again. Would appreciate a comment from some long time followers of Home First.

1 Like