Shares of this small-cap stock dipped close to 9 percent today after it informed about a fraud committed by the employees in one of its branches.
The stocks of Can Fin Homes Limited tumbled around 9 percent in Wednesday’s trading session and currently trades at Rs 780. The company has a market capitalization of Rs 10,380 crores.
Such sharp movements in the stock prices were caused after the company, through a regulatory filing with the BSE dated 25th July 2023, intimated about the misappropriation of funds that took place at the company’s “Ambala” branch worth Rs 38.53 crores.
The fraudulent activity took place over a period of time by way of misusing the cheque signing authority and transferring the funds to different personal bank accounts.
Digging into the standalone financials reported by the company, the operating revenues, as well as net profits, have showcased decent growth with the former increasing from Rs 1,987 crores during FY21-22 to Rs 2,742 crores in FY22-23, and, the latter moving from Rs 471 crores to Rs 621 crores keeping the timeframe the same.
Additionally, profitability metrics such as the return on equity (RoE), as well as return on capital employed (RoCE), showed favorable movements with the former moving from 15.36 percent during FY21-22 to 17.03 percent in FY22-23, and, the latter taking a shift from 18.28 percent to 23.92 percent.
Can Fin Homes Limited is a Housing Finance Institution based in India that offers a wide range of loan products, i.e., housing loans as well as non-housing loans. The majority of the company’s revenue comes from the receipt of interest amounts.
Written by Amit Madnani
