Canfin homes - The out performance continues
Previously I wrote on Canfin homes here
The sustained outperformance was noticed when I was reviewing GRUH and REPCO a few days back
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GRUH Finance and REPCO homes both had decent year however when compared with Canfin homes there was performance was little subdued, which you will see in detail below
The top line (Loan book growth) was good for both companies including loan mix
Bottom line growth has clearly tapered down to 20s from 30s seen in FY12-14 years, both firms exercised good control on operational costs thereby continuing to reduce cost to income (C/I) ratio , GRUH following HDFC is having industry leading C/I ratio
On Contrary CanFin homes had an another fantastic year
Lending practices were tight with minimal net NPA
GRUH’s return metrics remain best in class however others are closely catching up
Overall both companies had a very decent year. But clearly, now 3 years in a row CanFin homes have outdone its fancied peers
Future variables to track
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Loan book growth
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Net NPA
Mr Market has bid up housing finance companies none of them are cheap ( Jul 2017)
Lastly look at this fantastic chart from Canfin homes in these times
clearly lending to common man has its benefits vis a vis lending to biggies [ read PSU’s loan defaults]
This is a record of the author's thinking in August 2017, kept as written. It is not a recommendation to buy or sell, and the author may hold the securities discussed. See the disclosures.
Tankrich research on Can Fin Homes
2 posts from 2017 to 2017, oldest first.
- How I missed Canfin Homes
- Canfin homes - The out performance continues (this post)