Can Fin Homes... CMP- 127.. Needs Re-rating now!!!

Friends, I came across this stock today and I surprised how come I missed this GEM share….. according to me this stock is highly undervalued and under priced…. 10 Paid Up, Equity of Just 20 Crores…. From last 3 years YoY its profits are increasing … good reserves of 220 crores… regular dividend paying company… available at a PE of Just 7 while industry PE is at 25…. 66 percent of shareholding is in strong hands…….Isn’t it amazing….. Keeping in mind its business model it has to be rerated for sure…

Set up under the sponsorship of Canara Bank in 1987, Can Fin Homes is the first bank sponsored Housing Finance Company in India . The expertise gained by us in housing finance over the years gives us the confidence to come upto your expectations. A unique personal touch in service makes us different from others.

COMPANY PROFILE

• CFHL was promoted in 1987, the "International Year for Shelter for the Homeless" by Canara Bank in association with reputed financial institutions including HDFC and UTI. Now NHB is also an important equity holder in CFHL.
• CFHL was set up with the mission of promoting HOME OWNERSHIP and increasing HOUSING STOCK all over the country.
• The vision of Canara Bank on the relevance of having an exclusive outfit for providing housing finance at a time when institutional finance was not flowing to the housing sector to the required extent and banks had constraints in locking up funds in long term housing finance saw the birth of CFHL.

• Can Fin Homes Ltd. (CFHL) is the first and the biggest bank sponsored Housing Finance Company (HFC) in the country and one among the top players in the country's housing finance sector.
• The company has a standing of over 22 years.
• CFHL is one among the four HFCs selected by NHB in its first phase of securitisation programme.
• CFHL enjoys 5 Star rating from NHB for the purpose of refinance.
• CFHL's Deposit programme enjoys "MAA+" rating, which is the highest possible under High Safety rating.
• CFHL has an all India presence with a network of 40 branches.

Can Fin Homes is a close affiliate of Canara Bank, with the bank owning over a quarter of the total shareholding in our company. In tandem to this staunch support, we also have Unit Trust of India and HDFC as our major shareholders besides the public.

According to me this company is going to rerated by market sooner or later…. Though this stock has run during last few weeks but still I feel that it is a very long term story… its in still in its nascent stage and one has to look at its future potential….. housing insurance market in India is now booming and economy is coming on track now…. In coming years this company will find more and more customers and hence will make good profits…..