Quote on Home First IPO By Jyoti Roy, Angel Broking
Below are Quote on Home First IPO By Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd
Incorporated in 2010, Home First Finance Company India Limited is a Housing Finance Company. It is primarily engaged in the business of lending of housing loans to first time home buyers in low and middle-income groups, loans for the purpose of purchasing commercial property, loan against property and construction finance. The Company's Rs. 1154 crore IPO is opening today which comprises a fresh issue of Rs. 889 crore and offer for sale of Rs. 265 crore. Home First has posted strong growth in NII of 58.6% CAGR between FY18-20 while net profits have grown at a CAGR of 122.6% during the same period. Despite the Covid-19 crisis the company’s asset quality has remained largely stable with GNPA and NNPA largely stable at 0.7% and 0.5% respectively at the end of 1HFY2021. The company had a CAR of 51.7% at the end of 1HFY2021which provides comfort. At the higher end of the price band the stock would be trading at P/BV of 3.6x fully diluted post issue book value of `143.4 per share. We expect the company to post strong growth driven by strong demand for affordable housing. Given the growth prospects, we recommend a SUBSCRIBE rating on the issue.
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