Morgan Stanley sees earnings upcycle for India's housing financiers as concerns ease

Can Fin Homes

13/07/2026 08:07

** Affordable housing finance companies (AHFCs) are at start of strong earnings upcycle, with asset quality and idiosyncratic concerns largely resolved, says Morgan Stanley 
** AHFCs' disbursement growth poised to pick up in FY27, as early as Q1 FY27 - brokerage says
** Brokerage expects AUM growth of 21-25% Y/Y as transient headwinds, including U.S. trade tariffs, MSME stress, irregular weather ease; raises EPS forecasts by 1-5% across coverage on higher loan growth assumptions
** Morgan Stanley's top picks are Aptus Value Housing Finance APTS.NS, Home First Finance HOME.NS PNB Housing Finance PNBH.NS
** Raises PTs by 2.5% on APTS, 4.1% on HOME, 12.4% on PNBH
** Also lifts PT by 2.9% on Can Fin Homes CNFH.NS, 4.4% on Aavas Financiers AVAS.NS
** HOME, APTS, CNFH stocks up 1-3%, while PNBH, AVAS down 0.3-1.2%
     
     
     
     
     
     

 (Reporting by Aleef Jahan in Bengaluru)
 ((aleefjahan.cs@thomsonreuters.com))