I-Sec downgrades Home First to Add; target price Rs 1,375

ICICI Securities has downgraded Home First Finance Company India to Add from Buy with a target price of Rs 1,375. The current market price of Home First is Rs 1266. Home First Finance Company, incorporated in 2010, is a Small Cap company with a market cap of Rs 13266.40 crore, operating in the NBFC sector.

Home First’s key products/revenue segments include Interest, Income From Financial Services, Income From Sale Of Share & Securities, Fees & Commission Income and Other Operating Revenue for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-03-2025, the company has reported a Standalone Total Income of Rs 416.19 crore, up 2.15% from last quarter Total Income of Rs 407.45 crore and up 30.98% from last year same quarter Total Income of Rs 317.75 crore. The company has reported net profit after tax of Rs 104.69 crore in the latest quarter. The company’s top management includes Mr.Deepak Satwalekar, Mr.Manoj Viswanathan, Ms.Sucharita Mukherjee, Mr.Narendra Ostawal, Ms.Geeta Dutta Goel, Mr.Anuj Srivastava, Ms.Divya Sehgal, Mr.Maninder Singh Juneja. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 9 Crore shares outstanding.

Investment Rationale
Home First Finance (Home First), in its FY25 annual report themed ‘Home as the Foundation for Change’, highlighted that it has built a strong base during its decade-long journey as a housing financier by challenging status quo (tech-led solution to informal segment) and is now ready to accelerate its growth journey. While it took 14 years to reach an AUM of ~Rs 100bn, it now intends to add INR 100bn in three years and achieve an AUM of Rs 200 billion by FY27, and add another Rs 150 billion in next 3 years to reach AUM of Rs 350 billion by FY30. This implies CAGR of >20% until FY30. MP (49% AUM CAGR FY20-25), UP(54%), RJ (35%), AP (72%) and Telangana (44%) may be near-term growth markets. Given the recent run-up in stock price (up 13% in 1M), ICICI Securities has downgraded it to ADD (from Buy) with an unchanged target price of Rs 1,375.