India's Home First Finance gains after Jefferies sees scope for strong loan growth

Home First Finance India

03/07/2023 06:50

** Shares of Home First Finance Company India  HOME.NS  rise
as much as 3.9% to 814.8 rupees
    ** Brokerage Jefferies says strong demand and distribution
expansion should drive strong loan growth for co
    ** Adds that prime lending rate (PLR) hike of 50bps in April
and draw down of National Housing Bank borrowings should cushion
impact of higher cost of funds
    ** Competition is mainly from bank/ HFC affordable housing
products like Axis Aasha, HDFC Reach, ICICI Home Finance in
Ahmedabad market - Jefferies; says Ahmedabad constitutes nearly
28% of loans in Gujarat and 9% of total loans
    ** Brokerage has "buy" rating on HOME with PT of 945 rupees
per share
    ** Almost 71,000 shares change hands as of 10:55am IST, 0.3X
the 30-day moving average
    ** Fourteen analysts rate the stock "buy" or "strong buy",
one "sell"; median PT is 960 rupees - Refinitiv data
    ** Stock up 7.2% YTD as of last close
    

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com))