Canfin Homes
There are only handful of Non Banking Finance Companies with good market capitalization looking good. By rejecting few companies whose negative change in promoter holding in recent quarter and those with high valuations leaves out CANFIN homes which recently had healthy correction and took support of 50% Fib retracement and showing reversal. Trend has been changed since Sep 1. Valuations of this company is reasonably good in the industry and has good earnings yield as well.
Concerns:
1. High Debt to equity ratio
2. Low Interest Coverage Ratio considering high debt in the industry
3. Promoter holding has always been at 29.99%
4. Solvency Altman Z score is in grey area of 1.02. Z Score above 2.99 is stable.
5. Need to check what other borrowings are. Rising significantly since 2021.
There is one other housing finance company whose fundamentals are very good with very low debt but high valuations among the industry and is still in downtrend technically. "Aptus Value Housing Finance India Ltd"
There are only handful of Non Banking Finance Companies with good market capitalization looking good. By rejecting few companies whose negative change in promoter holding in recent quarter and those with high valuations leaves out CANFIN homes which recently had healthy correction and took support of 50% Fib retracement and showing reversal. Trend has been changed since Sep 1. Valuations of this company is reasonably good in the industry and has good earnings yield as well.
Concerns:
1. High Debt to equity ratio
2. Low Interest Coverage Ratio considering high debt in the industry
3. Promoter holding has always been at 29.99%
4. Solvency Altman Z score is in grey area of 1.02. Z Score above 2.99 is stable.
5. Need to check what other borrowings are. Rising significantly since 2021.
There is one other housing finance company whose fundamentals are very good with very low debt but high valuations among the industry and is still in downtrend technically. "Aptus Value Housing Finance India Ltd"