Home First Finan (HOMEFIRST)
Fast GrowerFairStock Score: 55/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,176.5 |
| Market Cap | ₹12,298.4 Cr |
| P/E Ratio | 21.27 |
| ROCE | 11.35% |
| ROE | 19.66% |
| Dividend Yield | 0.44% |
| Profit Growth | 32.3% |
| Debt/Equity | 2.44 |
| Sales Growth | 29.7% |
| Free Cash Flow | ₹-2,198.55 Cr |
| Promoter Holding | 12.35% |
| 52-Week Range | ₹893.7 — ₹1,317.7 |
| Sector | Finance |
| Book Value | ₹417.58 |
Strengths
- 28% sales growth and 37.35% profit growth show strong operational momentum
- ROE of 19.66% indicates efficient use of shareholder capital
- Piotroski F-Score of 7/9 suggests sound fundamental health
- Latest quarter net profit of ₹140 Cr on sales of ₹482 Cr implies a healthy margin profile
Concerns
- Negative free cash flow of -₹2,199 Cr due to rapid loan book expansion
- Altman Z-score of 1.30 points to financial stress risk
- Promoter holding of only 12.35% raises corporate governance concerns
- P/E of 22.78 and P/B of 4.75 leave no margin of safety versus Graham Number of ₹551.64
AI Analysis
Let me start with what I like. Home First Finance has grown sales at 28% and profits at over 37% — that is compounded wealth building. Return on equity at 19.66% is above my threshold of 15%. The Piotroski score of 7 out of 9 tells me the underlying fundamentals are improving. For a housing finance company, that is a sign of disciplined lending. But now let me talk about the other side. The price of ₹1,148.65 gives me a P/E of 22.78 and a P/B of 4.75. Book value is ₹241.86, so I am paying almost five times net worth for this company. Graham's number is ₹551.64 — Mr. Market wants double that. There is no margin of safety. The balance sheet is levered 3.79 times debt-to-equity, which is heavy for my taste. The Altman Z-score of 1.30 is below the safety zone, and free cash flow is negative at ₹2,199 crores because the lending book is expanding faster than retained earnings. Even the promoter holding is only 12.35%, so I as a minority shareholder have little say and limited assurance that capital will be allocated as I would like. The dividend yield of 0.34% is a footnote. In short, this is a fast grower with excellent growth metrics. But Graham taught me that price is what you pay, value is what you get. At today's price, I get no protection against error or misfortune. I would put this on my watch list, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer