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Futurecaps Clients Gain 30X from Mazagon Dock – What Lies Ahead?

Clients of Futurecaps benefited with huge returns – 30X on Mazagon Dock and 12X on Cochin Shipyard. Curious about the upcoming pick? – Discover the next big stock idea.

Spotlight Pick – Can Fin Homes

Can Fin Homes is an established NBFC in the housing finance sector. It mainly caters to salaried professionals from lower and middle segments, in addition to developers and corporates.

Its product portfolio includes: housing finance tailored to individuals, affordable homes, and PMAY-linked borrowers. It also offers composite loans, top-up loans, mortgage loans, site loans, loans against rent receivables, and loans for commercial properties.

For individuals, Can Fin also offers personal loans, children’s education loans, loans for pensioners, as well as fixed and cumulative deposits.

The company operates in three key segments: Housing Finance, Non-housing Finance, and Deposits. The average loan ticket size is 18 lakh for housing and 9 lakh for non-housing credit. It also raises funds via deposits regulated by the National Housing Bank.

Headquartered in Bengaluru, Can Fin has a strong nationwide footprint covering 21 states with 205 branches and multiple specialized housing centers. Shri Suresh S Iyer is the current Managing Director & CEO.

Core Offerings

• Housing Finance
• Non-Housing Finance
• Deposits

Positives

• 205 branches across 21 states and UTs, serving diverse geographies.
• Plans to expand network and penetrate new high-potential markets.
• Earnings CAGR of ~17.1% over the last 5 years.
• Intrinsic value estimated above 30%.
• Average borrowing cost at 6.5%, sustaining healthy spreads.
• Loan book crossed ?30,000 crore – strong business growth.
• 27% loan share from self-employed customers (?8,477 crore).
• Attractive valuation: P/E ~15X vs peer average ~24X.
• Better value than Indian diversified financial industry average (28.9X).
• Revenue forecasted at 14.7% growth vs Indian market 9.6%.
• Earnings growth forecast ~13.6%, higher than savings rate.

Negatives

• Intense competition from banks and larger HFCs in Tier I & II cities.
• Credit risk due to borrower defaults.
• Macroeconomic factors like inflation, demand-supply, and interest rates can cause liquidity and funding risks.

Warren Buffett Checklist

• Economic Moat – Moderate
• Growth – Good
• Valuation – Good
• Debt – High
• Integrity – Moderate

Summary

The company appears to be a promising multibagger with 300–500% growth potential in 5–10 years. Check our detailed research note for complete reasoning.

Who We Are

Futurecaps is a stock market india licensed SEBI Research Analyst delivering investment insights since 2012. We focus on Buffett-style investing, building over 50 multibagger picks. Our pricing is kept low to ensure accessibility for young and small investors.