This small-cap stock engaged in providing affordable home loans to low and middle-income segments, focusing on accessible housing finance solutions across India, in focus after BlackRock-managed ETF has bought a 0.55 percent stake through a bulk deal.
Stock Price Movement:
With a market capitalization of Rs. 8,792.20 crore, the shares of Home First Finance Company India Limited were currently trading at Rs. 958.65 per equity share, down nearly around 6.82 percent from its previous day’s close price of Rs. 1028.85.
What Happened:
On February 28, 2025, BlackRock-managed iShares Core MSCI Emerging Markets ETF, purchased 492,135 shares of Home First Finance Company India through a bulk deal. The average purchase price was Rs. 1007.25, representing 0.55 percent of the total shares traded. This bulk deal is valued at approx. Rs. 49.57 crore. This strategic move highlights the company’s engagement in emerging market investments.
Business expansion:
The company has expanded its branch network by adding 69 branches over the last 11 quarters, increasing the total from 80 to 149. In Q3 FY25, it opened 7 new branches in states like Gujarat, Rajasthan, and Tamil Nadu. With 359 touchpoints in 13 states, it plans to add 10 more branches this quarter.
Shareholding pattern
In December 2024, Home First Finance Company India Limited had a majority stake held by the foreign institutional investors at 37.91 percent, promoters at 14.31 percent, domestic institutional investors at 18.28 percent, and the public at 29.50 percent.
Foreign institutional investors (FII) have increased their stake in the company from 25.57 percent in Q2 FY25 to 37.91 percent in Q3 FY25, which suggests that they are confident in the company’s future growth prospects.
Recent quarter results:
Home First Finance Company India Limited’s revenue has increased from Rs. 296 crore in Q3 FY24 to Rs. 406 crore in Q3 FY25, which has grown by 37.16 percent. The net profit has also grown by 22.78 percent from Rs. 79 crore in Q3 FY24 to Rs. 97 crore in Q3 FY25.
The company’s revenue and net profit have grown at a CAGR of 34.38 percent and 46.08 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 11.2 percent and 15.5 percent, respectively. Home First Finance Company India Limited has an earnings per share (EPS) of Rs. 40.5, and its debt-to-equity ratio is 3.87x.
Written By – Nikhil Naik
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