Can Fin Homes shares slide after housing finance firm's Q2 results show rise in NPA
In its Q2 results on Tuesday, while the Canara Bank-promoted company posted a 11.6 per cent rise in its profit, its net interest income went up by 26 per cent. But the NPA increased from 0.34 per cent to 0.43 per cent.
Can Fin Homes Share Price: Shares of housing finance company, Can Fin Homes, closed lower by 0.84 per cent, or Rs 6.45, at Rs 761.85 each, on BSE on Wednesday in the first trading session after the company posted its second-quarter results on Tuesday.
In the Q2 results on Tuesday, while the Canara Bank-promoted company posted a 11.6 per cent rise in its profit, its net interest income went up by 26 per cent.
However, the company's non-performing assets increased from 0.34 per cent to 0.43 per cent.
The stock of the company closed at Rs 768.30 on Tuesday and started the session on Wednesday at Rs 772.95. The stock jumped to the day's high of Rs 774.50 before starting its downward journey. Even though the share price was declining, there was a spurt in its volume by 1.24 times in the morning, as per BSE.
Can Fin Homes Q2 Results
The housing finance company reported an 11.6 per cent rise in its net profit to Rs 158 croe, beating Zee Business Research estimates of Rs 152 crore.
It also beat analyst estimates in terms of net interest income, reporting a rise of 26 per cent to Rs 317 crore against Zee Business' estimates of Rs 296 crore.
The company's gross non-performing asset increased sequentially from 0.63 per cent to 0.76 per cent in the quarter under review.
The net non-performing asset also increased sequentially from 0.34 per cent in the previous quarter to 0.43 per cent in the second quarter.
The company has provided for a fraud case for Rs 30 crore, so, the provision has increased. While the provision was higher by 5.5 times year-on-year, it was 5.3 times quarter on quarter.
Zee Business view on Can Fin Homes
Zee Business managing editor Anil Singhvi said that the housing finance fim's results are strong all parameters, but its asset quality is a bit of concern.
Speaking about the share price, he said that while the future support level is Rs 735-745, the higher level is Rs 800-815.
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04:51 PM IST