Mazagon Dock 30X Returns – What’s Next?
Clients of Futurecaps gained 30X returns from Mazagon Dock and 12X from Cochin Shipyard. So, what’s the next multibagger? – Discover the next big stock idea.
Futurecaps Recommends – Can Fin Homes
Can Fin Homes is one of India’s reputed housing finance firms. It focuses on funding low & middle-income individuals and first-time homebuyers, preferably salaried professionals, while also extending services to builders, corporates, and others.
Its product portfolio includes: housing finance tailored to individuals, affordable homes, and PMAY-linked borrowers. It also offers composite loans, top-up loans, mortgage loans, site loans, loans against rent receivables, and loans for commercial properties.
For individuals, Can Fin also caters through personal financing options, education loans, pensioner loans, along with accepting deposits.
The company operates in three key segments: Housing Finance, Non-housing Finance, and Deposits. The average loan ticket size is ?18L in housing, ?9L in non-housing finance. It also mobilizes both fixed and cumulative deposits as per NHB norms.
Headquartered in Bengaluru, Can Fin has a widespread network spanning 205 branches, affordable housing centers, and satellite offices across India. Shri Suresh S Iyer is the current Managing Director & CEO.
Core Offerings
• Housing Finance
• Non-Housing Finance
• Deposits
Positives
• 205 branches across 21 states and UTs, serving diverse geographies.
• Plans to expand network and penetrate new high-potential markets.
• Earnings CAGR of ~17.1% over the last 5 years.
• Intrinsic value estimated above 30%.
• Average borrowing cost at 6.5%, sustaining healthy spreads.
• Loan book crossed ?30,000 crore – strong business growth.
• 27% loan share from self-employed customers (?8,477 crore).
• Attractive valuation: P/E ~15X vs peer average ~24X. free multibagger
• Better value than Indian diversified financial industry average (28.9X).
• Revenue forecasted at 14.7% growth vs Indian market 9.6%.
• Earnings growth forecast ~13.6%, higher than savings rate.
Challenges
• Intense competition from banks and larger HFCs in Tier I & II cities.
• Credit risk due to borrower defaults.
• Macroeconomic factors like inflation, demand-supply, and interest rates can cause liquidity and funding risks.
Futurecaps Valuation Metrics
• Economic Moat – Moderate
• Growth – Good
• Valuation – Good
• Debt – High
• Integrity – Moderate
Summary
The company has the potential to deliver multibagger returns in the order of 300–500% over the next 5–10 years. Check our detailed research note for complete reasoning.
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