Nirmal Bang Institutional Equities has kept its 'Buy' ratings on housing finance players Home First Finance and Can Fin Homes. The brokerage points to strong loan growth and stable asset quality, though investors are keeping an eye on management transitions and sector-wide interest rate sensitivity.
Nirmal Bang Institutional Equities has reaffirmed its positive stance on two prominent housing finance companies, Home First Finance Company India Ltd. and Can Fin Homes Ltd. In its latest report dated August 22, 2026, the brokerage maintained its 'Buy' ratings, projecting a potential upside for both stocks as the sector benefits from sustained housing demand.
For Home First Finance, the brokerage set a target price of Rs 1,506. This outlook follows a strong operational performance in the recent quarter, where the company reported a standalone net profit growth of 34.45% year-on-year for the first quarter of the 2027 fiscal year. The company’s management has also highlighted that July 2026 was the strongest month for loan disbursements in its history, providing a positive signal for its upcoming business momentum.
Home First Finance has set an ambitious goal to expand its Assets Under Management to Rs 360 billion by March 2030, targeting a growth rate of 23-24% annually. While the company is showing strong growth, investors should monitor upcoming changes in its leadership. The company recently announced that its CFO, Nutan Patwari, will step down on August 31, 2026. Additionally, the company has a lower promoter holding of approximately 7%, which is a factor shareholders often evaluate when looking at corporate stability.
For Can Fin Homes, the brokerage set a target price of Rs 995, citing the company's solid fundamental track record. The company demonstrated resilience in the previous fiscal year, with its loan book expanding to Rs 42,209 crore in FY26. Like many players in the housing finance sector, its performance remains tied to broader economic factors, including the interest rate environment and the cost of borrowing.
Investors in the housing finance sector continue to watch how these firms manage asset quality and interest margins. While growth plans for both companies remain a core focus, external risks such as potential regulatory changes, fluctuations in bond yields, and the impact of the interest rate cycle on loan demand are important factors. As with all financial stocks, the ability to maintain stable margins while managing debt and regulatory compliance will be the primary metric for long-term performance.