With nearly 100 per cent annualised return in last five years, shares of Can Fin HomesBSE 0.87 % have delivered over 3,000 per cent return to investors between June, 2012 and June, 2017.
The scrip has swelled some 3,040 per cent to Rs 2,989 as of June 9, 2017 from Rs 95.21 on June 8, 2012. This means Rs 10 lakh invested in the stock five years back would have become over Rs 3 crore today.
Both technical and fundamental analysts like the stock and still remain bullish on it, thanks to a demand boost from the government push to affordable housing and a robust balance sheet that it boasts of.
“Housing finance is emerging as a clear winner in the past couple of years and that story should continue. I have been bullish on Can Fin Homes for quite some time, but the stock now looks a little expensive. But given the kind of growth, fabulous quarterly numbers and strong management guidance, I think the sector as a whole and the stock in particular are poised to deliver good returns,” Rahul Shah, Associate VP for Equity Advisory GRP, Motilal Oswal Financial Service, told ETNow in an interview.
Over the past five years, net profit of the company has grown at a compounded annual growth rate (CAGR) of 40 per cent, while net sales have risen 36 per cent.
For the financial year ended March 31, 2017, the company posted net profit of Rs 235.26 crore compared with Rs 43.76 crore posted for FY12. The bottom line grew from Rs 54.12 crore in FY2013 to Rs 75.71 crore in FY2014, Rs 86.24 crore in FY2015 and Rs 157.11 crore in FY2016.
The company also did well in March quarter of 2017. A subsidiary of PSU lender Canara BankBSE 0.74 %, Can Fin Homes reported 49.36 per cent year-on-year growth in bottom line at Rs 70.87 crore compared with Rs 47.45 crore profit reported for the same quarter last year.
To make the stock more investor friendly, the company is considering a stock split, which the board will finalise on June 23.