Previously I wrote on Canfin homes here

The sustained outperformance was noticed when I was reviewing GRUH and REPCO a few days back


GRUH Finance and REPCO homes both had decent year however when compared with Canfin homes there was performance was little subdued, which you will see in detail below

The top line (Loan book growth) was good for both companies including loan mix

Bottom line growth has clearly tapered down to 20s from 30s seen in FY12-14 years, both firms exercised good control on operational costs thereby continuing to reduce cost to income (C/I) ratio , GRUH following HDFC is having industry leading C/I ratio

On Contrary CanFin homes had an another fantastic year

Lending practices were tight with minimal net NPA

GRUH’s return metrics remain best in class however others are closely catching up

Overall both companies had a very decent year. But clearly, now 3 years in a row CanFin homes have outdone its fancied peers

Future variables to track

  • Loan book growth
  • Net NPA

Mr Market has bid up housing finance companies none of them are cheap ( Jul 2017)


Lastly look at this fantastic chart from Canfin homes in these times

clearly lending to common man has its benefits vis a vis lending to biggies [ read PSU’s loan defaults]