Can Fin Homes Limited — Investor Meet, 27-01-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance**: Can Fin Homes reported flat disbursements of ₹1,879 Cr during the quarter, missing initial estimates of ₹2,300-2,400 Cr, primarily due to delays in property registrations related to the e-khata issue in Karnataka. Consequently, the Asset Under Management (AUM) growth is pegged at 9%. The gross NPA stands at 0.92%, with a slight uptick, while SMA 0 accounts highlight a portfolio of ₹770 Cr primarily driven by technical overdue charges rather than default. Effective provisioning for the year remains low at approximately 15 bps.

**Future Outlook and Growth Drivers**: Management remains optimistic about disbursements improving in Q4 as e-khata registrations accelerate. The company targets ₹12,000 Cr in disbursements for FY26, reflecting expected AUM growth of around 15%.

**Order Book and Operational Updates**: The company's funding strategies showed resilience despite challenges in Karnataka and Telangana, with successful raising of ₹1,600 Cr from NHB at a lower interest rate than traditional bank borrowings, improving the cost of funds.

**Analyst Q&A Insights**: Analysts queried the impact of competition and operational efficiency. Management confirmed no significant change in underwriting standards despite low approvals and highlighted ongoing growth in regions outside Karnataka. Questions on employee costs showed a rise due to newly hired staff for branch expansions and staff training, supporting growth initiatives.

**Market or Regulatory Updates**: The ongoing review of RBI guidelines regarding parent-subsidiary operations remains a point of uncertainty yet to be clarified, while the NHB's approach to affordable housing continues to evolve.

**Strategic Focus Areas**: The company's emphasis is on optimizing its product mix, enhancing internal sourcing, and branch expansion—fostering a gradual transition to a more diversified portfolio that includes professional loans.

**Investor Insight**: Given the financial health reflected in stable NPAs, a strategic focus on growth through disciplined underwriting, and management's clear outlook for disbursements, current insights align with a ‘buy’ stance. The company appears positioned to navigate existing challenges effectively while pursuing growth targets in the upcoming fiscal year.