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Can Fin Homes - Wary Of Growth Amid Price Wars: Nirmal Bang

Can Fin Homes - Wary Of Growth Amid Price Wars: Nirmal Bang

A residential housing complex in the Chembur suburb of Mumbai, India.  (Photographer Dhiraj Singh/Bloomberg)
A residential housing complex in the Chembur suburb of Mumbai, India. (Photographer Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Can Fin Homes Ltd. recently (effective September 01, 2021) increased its lending rates by 75 basis points.

The company’s home loan offering now starts at 8.25%, up 130 bps since April 2021.

At the same time, we have seen large banks cut their festive-period home loan offerings to record lows of 6.5-6.7%.

In view of such heavy price competition from banks, we remain wary about Can Fin Homes’ ability to deliver 18-20% growth in FY22.

Increasing share of high-ticket size loans/apartment funding may boost growth in the short term, but it would also expose the company to balance transfer risks due to uncompetitive pricing.

Click on the attachment to read the full report:

Nirmal Bang Can Fin Homes-Company Update-21 September 2021.pdf

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