Home First Finance Q2 Review - Credit Quality Behaviour Surprises Positively: ICICI Securities
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.
ICICI Securities Report
Home First Finance Company India Ltd. Q2FY22 earnings beat was buoyed by mere 30 basis points credit cost, 7.5% QoQ/23.8% YoY assets under management growth, 10 bps net interest margin improvement, partially offset by higher opex.
Stage-III assets being down 20 bps QoQ to 1.7%, one plus days past due declining 130 bps QoQ to 7.6% and cumulative restructuring being contained at 0.8% surprised positively.
Disbursements more than doubled YoY and grew 69% QoQ, thereby boosting AUM growth.
Home First Finance's reported earnings were further supported by securitised income of Rs 170 million.
Factoring-in more than 30% AUM growth, funding cost benefit, and improved credit cost, we upgrade earnings and expect it to compound at more than 40% over FY21-FY23E.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.