Mazagon Dock 30X Returns – What’s Next?
Clients of Futurecaps enjoyed 30X multibagger gains in Mazagon Dock along with 12X in Cochin Shipyard. Curious about the upcoming pick? – See our performance and new opportunity below!
New Multibagger – Can Fin Homes
Can Fin Homes is one of India’s reputed housing finance firms. It mainly caters to salaried professionals from lower and middle segments, in addition to developers and corporates.
Its product portfolio includes: home loans across categories such as affordable housing, subsidy-linked loans, and PMAY schemes. It also extends services to businesses and individuals through varied loan types including site loans and top-up credit.
For individuals, Can Fin also offers personal loans, children’s education loans, loans for pensioners, as well as fixed and cumulative deposits.
The company operates in three key segments: Housing Finance, Non-housing Finance, and Deposits. The average loan ticket size is 18 lakh for housing and 9 lakh for non-housing credit. It also accepts Fixed and Cumulative deposits under National Housing Bank guidelines.
Headquartered in Bengaluru, Can Fin has a pan-India presence with 205 branches, 21 Affordable Housing Loan Centers, 12 satellite offices, and a total of 219 outlets across 100+ cities in 21 states and Union Territories. Shri Suresh S Iyer is the current Managing Director & CEO.
Products & Services
• Housing Finance
• Non-Housing Finance
• Deposits
Positives
• 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 business growth.
• 27% loan share from self-employed multibagger stocks 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.
Negatives
• 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.
Warren Buffett Checklist
• Economic Moat – Moderate
• Growth – Good
• Valuation – Good
• Debt – High
• Integrity – Moderate
Investment Outlook
The company has the potential to deliver multibagger returns in the order of 300–500% over the next 5–10 years. Full details are available in the complete article on our website.
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