Target: ₹1,650

CMP: ₹1294.75

We visited a fast-growing branch of Home First Finance Company (HFFC) on the outskirts of Mumbai and interacted with the regional head and some connectors. The strong demand for loans is driven by rising aspirations for home ownership, growth in nuclear families, and improving standard of living of the people staying in rental homes in the city. The same is echoed in media reports citing realty consultancy firm Anarock’s recent survey stating robust demand for affordable housing in the Mumbai metropolitan region, despite some cooling off in other key cities.

To capture this demand, HFFC’s approved project finance (APF), or the projects pre-approved for financing, have increased significantly from 40 to 110 in the current year. The company is also expanding its presence by opening new branches in improving connectivity locations such as Virar and Badlapur.

Further, rising demand and improving efficiency are expected to boost the disbursement productivity per relationship manager or RM from ₹4-4.5m/month to ₹7-7.5m/month. Incentives are offered to RMs, both at the disbursal and collection stages. Importantly, RMs are well-versed with documentation requirements and client screening, which ensures better-quality sourcing.

We appreciate the tech setup and conservative geographic deepening. Maintain Add rating on the stock with an unchanged target price of ₹1,650.

Published on September 11, 2025