Mazagon Dock 30X Returns – What’s Next?
Clients of Futurecaps benefited with huge returns – 30X on Mazagon Dock and 12X on Cochin Shipyard. So, what’s the next multibagger? – Check out what’s coming up in our research pipeline.
New Multibagger – Can Fin Homes
Can Fin Homes is an established NBFC in the housing finance sector. It mainly caters to salaried professionals from lower and middle segments, in addition to developers and corporates.
Its product portfolio includes: individual housing loans, affordable housing loans, credit-linked subsidy schemes, and Pradhan Mantri Awas Yojana (PMAY). It also extends services to businesses and individuals through varied loan types including site loans and top-up credit.
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 accepts Fixed and Cumulative deposits under National Housing Bank guidelines.
Headquartered in Bengaluru, Can Fin has a strong nationwide footprint covering 21 states with 205 branches and multiple specialized housing centers. Shri Suresh S Iyer is the current Managing Director & CEO.
Business Segments
• Housing Finance
• Non-Housing Finance
• Deposits
Strengths
• 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 intrinsic value india business growth.
• 27% loan share from self-employed customers (?8,477 crore).
• Attractive valuation: P/E ~15X vs peer average ~24X.
• 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.
Stock Analysis at a Glance
• Economic Moat – Moderate
• Growth – Good
• Valuation – Good
• Debt – High
• Integrity – Moderate
Investment Outlook
The company appears to be a promising multibagger with 300–500% growth potential in 5–10 years. Check our detailed research note for complete reasoning.
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