Housing finance stocks in focus; Can Fin Homes surges 17% post Q3 results

Repco Home Finance, GIC Housing Finance, PNB Housing Finance, and LIC Housing Finance rallied up to 13% in intra-day today in an otherwise weak market.

Shares of housing finance companies were in focus in an otherwise subdued market on Tuesday after Can Fin Homes reported robust earnings for the third quarter (October-December) of fiscal 2019-2020.

Can Fin Homes surged 17 per cent to hit a new 52-week high of Rs 457 on the BSE after reporting a 40 per cent year-on-year (YoY) rise in net profit at Rs 106.61 crore for Q3FY20. Net interest income (NII) was up 23.9 per cent at Rs 169 crore against Rs 136.11 crore in the same quarter last year. Net interest margin (NIM) increased to 3.42 per cent versus 3.31 per cent (YoY).

The company's asset quality remained stable with gross NPA & Net NPA at 0.80 per cent & 0.59 per cent, respectively. The company’s loan book surpassed the Rs 20,000 crore mark with a clientele base of 1.55 lakh.

The management said the company’s focus now is on affordable housing with a proper mix of non-housing segments. Can Fin Homes propose to raise Rs 1,000 crore through fresh equity via rights issue/qualified institutional placement (QIP) of by preferential issue.

At 01:20 pm, the stock was trading 15 per cent higher at Rs 450 on the BSE, as compared to 0.25 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than 25-fold with a combined around 5 million shares changing hands on the NSE and BSE so far.

Following the Q3 results of Can Fin Homes, stocks of Repco Home Finance (up 13 per cent at Rs 366), GIC Housing Finance (7 per cent at Rs 165), PNB Housing Finance (6 per cent at Rs 563) and LIC Housing Finance (5 per cent at Rs 486) also rallied more than 4 per cent in an otherwise weak market.