In today’s world, where owning a home is a cherished dream, the need for affordable housing has skyrocketed. Home First Finance, a prominent player in the housing finance sector, stands at the forefront of this growing demand. With certified recognition as a “Great Place To Work” for three consecutive years, HOMEFIRST isn’t just about numbers; it’s about fostering a positive workplace culture and a dedicated team driving its success. As we delve into HOMEFIRST’s share price predictions, we find an intriguing blend of financial strength, human capital growth, and expansion plans that make it a noteworthy contender.
About Home First Finance
Home First Finance Company India Ltd (NSE:HOMEFIRST) is a technology-driven, pan-India housing finance company specializing in affordable home loans for first-time buyers, with a primary focus on salaried individuals earning less than ₹50,000 per month. They boast an impressive 87% focus on housing loans with an average ticket size of ₹1.12 million, maintain strong liquidity, utilize data science for centralized underwriting, and possess a deep understanding of local property markets.
It is doing really well financially. As of September 2021, they managed a whopping 4617 Crores in their piggy bank, and they lent out 1097 Crores in home loans during the 2020-2021 fiscal year.
They borrowed 3075 Crores as of September 2021, but they borrowed it from 19 different well-known lenders, kind of like asking different friends for help. They didn’t use commercial papers to borrow money, and they kept the cost of borrowing at 7.1%.
Home First Finance Company really likes using technology. They use it to make applying for home loans easy, make customers happy, and keep their business safe from risks. They even have a special computer program that helps them quickly and accurately decide if someone can get a loan. In fact, they say “yes” to 88% of loan applications within just 48 hours, which is super fast!
Home First Finance isn’t just in one place. They’re like a superhero that spreads out to lots of different cities. While they’re big in places like Gujarat and Maharashtra, they’re also moving into new cities that aren’t as big. This helps them avoid problems if something goes wrong in one place and lets them help more people find homes. Their way of growing shows they’re ready to serve more and more people.
In summary, Home First Finance Company India Ltd not only emerges as a formidable player in the housing finance sector but also showcases financial responsibility, a commitment to technology, and a well-thought-out strategy for expanding its market presence.
Home First Finance Q2 FY 2024 Key Points And Summary:
- High ROE: Despite inflation and peak interest rates, the company achieved an impressive Return on Equity (ROE) of 15.6%.
- Substantial Growth: Q2 disbursements reached Rs 959 Cr, growing by 36.6% YoY and 7.1% QoQ.
- Healthy Spreads: Spreads at 5.5% remained above the guided level of 5.25%.
- Improved Margins: Net Interest Margin (NIM) was 6.0%, leading to a 27.2% growth in Net Interest Income.
- Efficiency: Operational expenses to assets were at 2.9%, and the cost-to-income ratio was 35.2% in Q2FY24.
- Strong Capital Position: Total CRAR stood at 45.5%, with Tier 1 CRAR at 45.0%.
- Borrowing Cost Expectation: The company anticipates a 10-20 bps increase in the cost of borrowing.
- Promoters’ stake in Home First Finance has decreased from 33.70% (Mar 2021) to 30.19% (Sep 2023), indicating a slight reduction.
- FIIs have shown growing interest, increasing their stake from 10.86% (Mar 2021) to 17.02% (Sep 2023).
- DIIs, after initially holding 42.64% (Mar 2021), reduced their stake significantly to 8.41% (Mar 2023), with a slight recovery to 9.96% (Sep 2023).
- Public shareholding has substantially risen, growing from 12.79% (Mar 2021) to 42.83% (Sep 2023), reflecting increasing retail investor participation.
- The number of shareholders decreased from 1,36,780 (Mar 2021) to 61,837 (Mar 2022) but has since increased to 78,918 (Sep 2023), indicating changes in the investor base.
|Month||Maximum Price (₹)||Minimum Price (₹)|
In November and December 2023, the share prices for Home First Finance are projected to range between ₹957.75 to ₹989.36 as the maximum price and ₹870.69 to ₹899.42 as the minimum price. These figures represent the anticipated price bounds for the year, suggesting that the share price is expected to fluctuate within this range over the specified period. The maximum and minimum prices provide investors with critical reference points to monitor and assess potential price movements and investment decisions in the upcoming year.
|When||Maximum Price||Minimum Price|
The share prices display an overall upward trend from January to December 2024. The maximum prices generally increase over the months, starting at ₹1,009.55 in January and reaching ₹1,154.50 in December. This upward trajectory suggests growing optimism or increasing investor interest in Home First Finance over the year.
The minimum share prices exhibit a progressive rise as well, commencing at ₹877.87 in January and concluding at ₹1,003.92 in December. This consistent climb in the minimum prices reflects a sustained level of support for Home First Finance ‘s shares, indicating potential investor confidence and a willingness to buy at higher price points.
This suggests a positive outlook for Home First Finance’s share prices in 2024, with investors showing increased confidence over the year.
|When||Maximum Price||Minimum Price|
In 2025, Home First Finance’s share price is on the rise, which means the numbers are going up. The highest price is predicted to start at ₹1,177.59 in January and keep going up to ₹1,407.50 in December. This shows that many investors believe in the company, and they expect its value to go up over the year.
At the same time, the lowest price is starting at ₹905.84 in January and climbing to ₹1,082.69 in December. This suggests that, on the bad days, even the lowest price for HOMEFIRST shares is getting higher. It’s like a safety net for the value of the shares.
This overall trend, which means the general direction, is good news for the company and its investors.
|Year||Maximum Price||Minimum Price|
Looking ahead, in 2026, the share prices for Home First Finance are anticipated to show a rising trend. The highest expected share price is predicted to reach ₹1,477.88, and the lowest expected share price is projected to be ₹1,034.51. This indicates optimism among investors, with the belief that HomeFirst’s shares will continue to gain value in the upcoming year.
Moving on to 2027, the share prices for Home First Finance are expected to increase further. The maximum price is forecasted to reach ₹1,625.67, while the minimum is expected to be ₹1,137.97.
In 2028, the share prices take a substantial leap. The maximum share price is estimated to reach ₹2,275.93, and the minimum price remains at ₹1,137.97.
In 2029, there’s a minor dip in the share prices. The maximum share price is projected to be ₹1,970.50, while the minimum expected price is ₹985.25. Despite the slight decrease, the values are still relatively high, suggesting ongoing optimism.
Finally, in 2030, the share prices see a remarkable rise. The maximum share price is forecasted to reach ₹2,561.66, and the minimum expected price is ₹1,793.16.
This future analysis portrays a positive picture for Home First Finance Company, with anticipated upward trends in share prices over the years. Investors may find these projections promising. However, it’s essential to keep an eye on market changes and company performance as the future unfolds.
Home First Finance Financial Condition (Last 5 Years)
|Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
|Financing Margin %||24%||26%||29%||39%||38%|
|Other Income +
|Profit before tax
|Net Profit +
|EPS in Rs||36.09||10.16||11.46||21.24||25.94|
|Dividend Payout %||0%||0%||0%||0%||10%|
- Revenue Growth: Home First Finance Company has consistently grown its revenue over the years. In March 2019, the company reported revenue of ₹264, which surged to ₹791 by March 2023.
- Interest and Expenses: HomeFirst has been paying interest on its financial activities, and its expenses have also increased. In March 2019, the interest paid was ₹127, and expenses were ₹75. By March 2023, interest had risen to ₹308, and expenses had increased to ₹183.
- Financing Profit: The financing profit, which is the money left after paying interest and expenses, has shown a positive trend. In March 2019, it was ₹63, and it grew to ₹300 by March 2023. This indicates that Home First Finance is becoming more profitable in its core operations.
- Profit before Tax: The profit before tax, which considers other sources of income and depreciation, has also been on the rise. In March 2019, it was ₹65, and by March 2023, it had increased to ₹295.
- Net Profit: After accounting for taxes, Home First Finance Company’s net profit has seen significant growth. In March 2019, it was ₹46, and by March 2023, it had risen to ₹228. This indicates that the company is effectively managing its finances.
- Earnings per Share (EPS): The EPS is a measure of how much profit each share of the company represents. Home First Finance EPS has increased from ₹36.09 in March 2019 to ₹25.94 in March 2023, showing that the company is generating more earnings per share.
- Dividend Payout: The company started distributing dividends in March 2023, with a dividend payout of 10%. This means it is sharing a portion of its profits with shareholders.
Overall, Home First Finance Company has shown steady growth in revenue, profit, and earnings per share over the years. It is effectively managing its finances and has started distributing dividends to shareholders, which can be seen as a positive sign for investors.
- Infosys Share Price Target 2024 to 2030
- MTAR Share Price Target 2024 to 2030
- FDC Share Price Target 2024 to 2030
As of November 19, 2023, current share price value of HomeFirst is ₹925.
What Is the Market Value of Home First Finance?
The market capitalization of Home First Finance Company stands at ₹8,058 Crores.
What Is the Stock P/E Ratio of Home First Finance Company India Ltd?
The stock P/E ratio for HomeFirst is 31.66, with a median P/E of 37.7.
The expected target share prices for Home First Finance Company India Ltd in 2025 are projected to range between ₹1,177.59 (minimum) and ₹1,407.50 (maximum) over the course of the year.
The target share prices for the year 2030 are expected to range between ₹1,793.16 (minimum) and ₹2,561.66 (maximum).
What Is the Current Promoter Holding of Home First Finance?
As of September 2023, the current promoter holding of Home First Finance Company India stands at 30.19%.
Should One Invest In Home First Finance?
Home First Finance Company (HOMEFIRST) stands out with its promising financial performance, boasting consistent revenue growth and an impressive compound annual growth rate (CAGR) of 55.4% over the last five years. Effective financial management is evident through a reduction in working capital requirements. However, it’s worth noting that the stock trades at a premium, with a price-to-earnings (P/E) ratio of 30.3, signifying a relatively high market valuation.
Home First Finance Company India Ltd’s low promoter holding at 30.2% and a modest return on equity (ROE) of 11.9% over the past three years may raise concerns about promoter commitment and the company’s ability to generate returns on shareholder equity. Moreover, a low-interest coverage ratio poses a risk to the company’s financial flexibility in meeting interest expenses.
On a positive note, Home First Finance Company India Ltd operates in the thriving affordable housing sector, where demand remains robust, and the company is anticipated to have a good quarter. Although the ROE is not exceptionally high, it has remained steady over the years.
Additionally, Home First Finance has fortified its liquidity position through successful funding initiatives, ensuring the availability of financial resources to support its expanding operations.
Looking forward, HomeFirst demonstrates its dedication to financial robustness and strategic expansion by planning to add 130 branches by the end of the financial year, highlighting ambitious growth plans. These initiatives collectively underscore Home First Finances’s commitment to strong financial performance and strategic expansion within the housing finance sector.
Potential investors should conduct comprehensive research, align with their investment goals, and evaluate risk tolerance before making decisions. While Home First Finance’s strong financial performance and presence in a high-demand sector are notable strengths, the valuation and lower promoter holding should be carefully considered in the investment decision-making process.
What did we learn?
- 1 About Home First Finance
- 2 Home First Finance Q2 FY 2024 Key Points And Summary:
- 3 Home First Finance Shareholding Pattern Analysis
- 4 Home First Finance Share Price Target 2023 To 2030
- 5 Home First Finance Financial Condition (Last 5 Years)
- 6 FAQs
- 6.1 What Is the Current Share Price Value of Home First Finance Company India Ltd?
- 6.2 What Is the Market Value of Home First Finance?
- 6.3 What Is the Stock P/E Ratio of Home First Finance Company India Ltd?
- 6.4 What Is The Share Price Target For Home First by 2025?
- 6.5 What Is The Share Price Target For Home First Finance Company India Ltd By 2030?
- 6.6 What Is the Current Promoter Holding of Home First Finance?
- 7 Should One Invest In Home First Finance?