Home First Finance - Tech-Led Affordable Housing Play At Affordable Valuations: ICICI Securities
Motorcyclists travel past a building at a residential housing complex in Thane, Maharashtra, India. (Photographer Dhiraj Singh/Bloomberg)

Home First Finance - Tech-Led Affordable Housing Play At Affordable Valuations: 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., an affordable housing financier with AUM of Rs 39 billion and focus on salaried housing loans, has several value propositions that differentiate it from peers in high growth, high yielding, hugely untapped affordable housing finance segment:

  • 75% customers in EWS/LIC category and 32% being new to credit
  • technology at its core – right from sourcing to collections
  • well-trained/educated team to appropriately assess need and right size loans
  • paperless loan processing with quick TAT of <48 hours
  • omni-channel lead generation driving sourcing

Few risks include:

i) Sourcing as well as collections managed by front-end team;

ii) borrowing profile not fully explored yet;

iii) apartment home loans showing some stress (in pockets).

With >30% AUM growth, funding cost benefit, improved cost to income and contained credit cost, we expect earnings to compound at >40% over FY21-23E.

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