Can Fin Homes Keeps Buy Call From Sharekhan Even After Share Price Drops

Brokerage firm Mirae Asset Sharekhan is keeping its buy call on Can Fin Homes stock with a target price of 954 rupees per share, even though the company's shares have fallen about 21% since the start of the year.

Earnings and Margins

Can Fin Homes reported a profit after tax of 275 crore rupees, which is up 9.2% from last year and 2.5% from the previous quarter. The company's net interest margin dropped to 3.96% of assets under management, mainly because borrowing costs went up.

Growth and Lending

Assets under management grew to 43,539 crore rupees, marking a 9.8% yearly increase. At the same time, new loan disbursements fell 6.8% compared to last year and 9% from the previous quarter, partly because the company moved 157 branches to a new technology platform.

Context

Brokerage firms give buy ratings and target prices to help investors decide which stocks to buy or sell based on company performance. Technology upgrades in banking and housing finance companies often cause short-term slowdowns in business numbers before operations get back to normal.