Canfin Homes
is the housing finance arm of Canara bank .Company’s major concentration is in
south India especially Bangalore .Till 2012 company’s growth was very slow ,but
from 2012 onwards management turned aggressive in expanding branch
network.Company opened 17 new branches in 2012-13 FY alone and the total
branches are 69 now.This number is very important when we consider the fact
that ,for the past 25 years ( 1987 to 2012 ) company started just 52 branches
only. Company concentrating in retail loan ,and percentage of corporate loan is very low . About 95 per cent of the advances given to employed people and the average loan size is Rs. 15 lakh.This help the company to
keep a very good asset quality where its Gross NPA is below 1 % and net NPA is
Zero.Company is expected to report a CAGR of 40-45% in disbursements
for FY12-14.Company’s net interest margin is one
of the best in the industry. Since company reported a boring growth rate for
past many years ,investors does not consider Canfin as a serious player in this
sector and ignored this stock till now.But if the recent efforts by the
management is any indication for their future plans ,there is very good chance
for a sharp re- rating in coming years.Company’s stock is currently trading
around Rs.145 where its book value will be close to Rs.185 by the year end
.Company is an uninterrupted dividend payer which declared 30 % in last
FY.Canfin Homes reported a profit of Rs.43 Cr and an EPS of Rs.21 in FY 2012. Company
is expected to report an EPS of Rs.33 and Rs.40 each in FY 14 and FY 15 .At
current market of Rs.145 even low risk investors can consider this stock with a
long term view.
Link to company website HERE
Dear Sir,
ReplyDeleteWhat is view on LIC housing finance and IL & FS investment manager for long term??
Not tracking both
DeleteSir, do you like GIC Housing Finance also?
ReplyDeleteOk, but prefer Canfin over GICHF
DeleteDear sir,
DeleteMay I know the reason for your preference of Canfin over GICHF?
Dear v.p sir thanks for your recommendation. I want to know how will be singer India for long term view? It is a good tern around story. recently it come out of Bfir.
ReplyDeleteNot strictly tracking Singer.Not seeing much prospects for its sewing machine business going forward.Success depends on the scalability of household appliances business but that too may not be easy considering the prevailing competition .
DeleteWhat's about pnb gilt?
ReplyDeleteNot tracking it
Deletesir,
ReplyDeleteI want to know the status of JK AGRO seeds which have changed their name to florence investech it is more than 5months it is not listed/traded any info from you would appreciate.
Thanking you,
Regards
Arjun.
Stock will re-list once the company gets permission from exchange post scheme of arrangement.
DeleteGreat pick sir its early stage identification of stock ... which will do well... especially the information about canara bank was very good...
ReplyDeletethank you sir,
Rahul
Dear sir,
ReplyDeleteWant to know your view on metal stocks like Hindalco, TISCO. STERLITE @cmp. for long term.
Thanks
Start buying metal stocks if ready to hold for long term.
DeleteSir,
ReplyDeleteFew months back there was a recommendation of stock named Bambino Agro. I had purchased at that time at around 70 RS. Can we average more at current levels.
Also, could you guide us on developments if any in this company
thanks
Positive on company .This stock included in periodic call auction so liquidity may be an issue.
DeleteSir,
ReplyDeleteneed ur opinion on Cravatex and Photoquip?
Not tracking both
DeleteVP Sir,
ReplyDeleteDo you think that Kopran will turnaround and do well in the long run? What are the possible risks in the stock?
Turnaround is possible ,company having some accumulated loss.
DeleteDo you have any input on Nagarjuna Fertilizer(Kakinada..) relisting date...No actual input on relisting date. Lot of
ReplyDeleteNot tracking this stock
DeleteSir how is the performance of Ion exchange and KSB pumps... will the share price go up ?.... for the past few months its going lower....
ReplyDeleteThanks,
Rahul
Business is expected to grow
DeleteSir,
ReplyDeleteplease give your opinion on Shilp Gravures ?
Better choices may be available in this market
DeleteVP sir,
ReplyDeleteI am a new visitor to your blog. You are doing a great job.
Are Mangalam cements and Panacea still a good buy? I noticed they took a heavy dip and just started moving up. Please suggest.
Harsha
Hope both will grow better in long term
DeleteVP Sir,
ReplyDeleteGreat pick. The only question or discomfort i have with Can Fin home is that it had a pretty stagnant Sales for last 4 years. Do we have any idea if new branches will be opened consistently for next 3 or 4 or 10 years?i mean what should could be considered a good assumption about growth for next 5 years.
Ravi
In a latest interview ,company officials claiming that they are planning aggressive network expansion in coming years.
DeleteSIR the drug inspectors of chenni filed a case on PANACEA regarding vaccine labeling and bluffing of consumers by changing of labels what do you feel about that case?
ReplyDeletethank u
p@w@n
Explanation by the company as follows :
DeletePanacea officials said the company applied to the Central Drugs Standard Control Organisation (CDSCO) in 2008 to extend the shelf life of the vaccine from 24 months to 36 months after extensive tests. "The tests showed the vaccine had the stability required," a Panacea official said. "The vaccines were tested at the Central Research Institute, Kasauli. CDSCO gave the company permission to extend the vaccine's shelf life on September 10, 2010."
"The medicines should be stored at temperatures between 2oC and 8oC," he said. "We would have had to remove the vials from refrigeration to remove the old labels. This could have led to contamination."
dear value pick sir we are in diloma with this illiquid call aution. sir can we hold those stocks or exist ? if we hold for longterm after their growth in business market will identify them or not? market people will dare to buy irrespective of call aution or not? they become multibagers in future or not? please clarify sir.
ReplyDeleteDear Vishal
DeleteAs you are aware,retail investors participation in small and mid caps investment is comparatively higher than the participation of institutional investors in this segment .But many of them are not familiar with this method .So this system may take much more time to get an acceptability among them and we can't predict when it will happen.
Dear VP,
ReplyDeleteAny view on Caplin Labs ..Pls advice, Planning to buy the stock
Dear Sir,
ReplyDeleteCan you advice about L&T Finance @75