Can Fin Homes Reaches New 52-Week High of Rs 932.5 Marking Significant Milestone

Stock Performance and Market Context

On the trading day, Can Fin Homes touched an intraday high of Rs 932.5, representing a 3.49% rise within the session. This performance outpaced its sector by 2.49%, signalling relative strength amid a Sensex that experienced a decline of 0.35%, closing at 84,842.27 points. The benchmark index remains 1.55% shy of its own 52-week high of 86,159.02, with the broader market trading above key moving averages, including the 50-day and 200-day averages, indicating a generally bullish technical backdrop.

Can Fin Homes is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, a technical indicator often associated with positive momentum and investor confidence in the stock’s near-term trajectory. This alignment of moving averages suggests a robust trend that has supported the stock’s advance to its new high.

Long-Term Performance and Valuation Metrics

Over the past year, Can Fin Homes has recorded a price appreciation of 8.96%, outperforming the Sensex’s 4.95% return during the same period. The stock’s 52-week low stands at Rs 558.8, highlighting the significant price range it has traversed in the last twelve months. This upward movement reflects the company’s ability to maintain steady growth in a competitive housing finance environment.

From a fundamental perspective, Can Fin Homes exhibits a strong average Return on Equity (ROE) of 17.03%, indicating efficient utilisation of shareholder capital. The company’s price-to-book value ratio is noted at 2.2, which is relatively elevated compared to peer averages, suggesting a premium valuation that investors have placed on the stock based on its financial performance and market position.

Quarterly Financial Highlights

In the most recent quarter, Can Fin Homes reported net sales of Rs 1,049.45 crores, marking the highest quarterly figure recorded by the company. Operating profit before depreciation, interest, and taxes (PBDIT) also reached a peak at Rs 974.11 crores. The operating profit to net sales ratio stood at an impressive 92.82%, reflecting strong operational efficiency and cost management within the quarter.

Institutional Holding and Market Position

Institutional investors hold a significant stake in Can Fin Homes, accounting for 36.39% of the shareholding. This level of institutional participation often indicates confidence in the company’s fundamentals and governance, given the resources and analytical capabilities these investors typically employ.

Can Fin Homes operates within the housing finance sector, a segment that has shown resilience and steady demand amid evolving economic conditions. The company’s market capitalisation grade is noted as 3, situating it within a mid-sized category relative to its peers.

Valuation Considerations and Profitability Trends

While the stock’s valuation is on the higher side, with a price-to-book ratio of 2.2, this is balanced by a Return on Equity of 16.9% in the latest assessment period. Profit growth over the past year has been recorded at 12.3%, indicating a steady expansion in earnings. The price-to-earnings-to-growth (PEG) ratio stands at 1.1, suggesting that the stock’s price reflects its earnings growth rate in a balanced manner.

Sector and Broader Market Dynamics

The housing finance sector continues to demonstrate steady demand, supported by favourable demographic trends and government initiatives aimed at promoting affordable housing. Can Fin Homes’ performance relative to its sector peers highlights its ability to capitalise on these market conditions effectively.

Despite the broader market’s modest retreat on the day, Can Fin Homes’ advance to a new 52-week high illustrates a divergence from the general trend, underscoring the stock’s relative strength and the company’s solid financial footing.

Summary of Key Metrics

To summarise, Can Fin Homes’ new 52-week high of Rs 932.5 is supported by:

• Trading above all major moving averages, indicating positive momentum


• Net sales and operating profit reaching record quarterly levels


• Strong Return on Equity averaging above 17%


• Institutional holdings exceeding 36%, reflecting confidence from major investors


• Outperformance relative to the Sensex over the past year

This combination of factors has contributed to the stock’s recent price strength and milestone achievement.

Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →