🌟 Stock of the Week – HOMEFIRST

Hello ,

We’re excited to bring you this week’s spotlight from the GoalFi desk – a name that has been making waves across the financial space this month.

🌟Stock of the Week – Home First Finance Company (HOMEFIRST)

CMP: ₹1,473.90 | Daily Gain: 🔼 +6.0% | MTD Gain: 🔼 +15.60% | Weekly Gain: 🔼 +14.0%
Sector: Home Financing

🏠 Company Overview

Home First Finance Company India Limited (HomeFirst) is a technology-driven affordable housing finance company focused on first-time homebuyers in low- and middle-income segments. It primarily offers housing loans for purchase or construction of homes.

With 149 branches across 13 states/UTs, HomeFirst has a deep presence in emerging urban markets like Gujarat, Maharashtra, AP, Telangana, Karnataka, and Tamil Nadu, while expanding rapidly in Uttar Pradesh, Madhya Pradesh, and Rajasthan. Its diversified lead generation engine and digital-first operations position it strongly in the growing affordable housing finance segment.

📈 Performance Snapshot

• 🔹 +6% jump on Friday with strong momentum and volumes

• 🔹 +15.6% return MTD, supported by institutional inflows

• 🔹 +14.0% YTD performance, outperforming housing finance peers

🧮 Quarterly Performance (Q4FY25 vs Q3FY25)

💡 Consistent improvement in profitability and stable asset quality reinforce its operational efficiency.

📊 Portfolio Representation

HOMEFIRST is part of 14+ GoalFi factor-driven portfolios, including:

• 🧠 Alpha Blend – Quality Focus All Cap: +26.77% return

• 💼 India Financial Growth Theme: +37.23% return

• 📊 Multi-Factor All Cap - April Cohort Smart Beta: +23.86% return

• 🔍 Multi-Factor All Cap - May Cohort Smart Beta: +21.55% return 

📌 Presence across momentum, quality, and smart beta strategies underscores all-round factor strength.

✅ Pros

• Expected to deliver another strong quarter

• Robust 5Y profit CAGR of 36.9%

• Median sales growth of 45.4% over the last 10 years

⚠️ Cons

• Valuation rich: P/B ratio of 5.26x

• Low interest coverage ratio (due to elevated borrowings)

• Promoter holding is low at 12.5% and decreased by 1.84% last quarter

📚 Fundamental Strength

🧾 Shareholding Pattern (March 2025)

📉 Promoter stake has declined from 23.6% (Dec 2023) to 12.5%, while FII and DII holdings have steadily increased, indicating rising institutional confidence.

🧠 GoalFi View

HomeFirst remains a high-conviction name in India’s housing finance space. It combines strong loan growth, stable NPAs, and factor-driven price strength, all supported by growing distribution and underwriting efficiency.

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We hope this update helps you stay informed and empowered in your investment journey. Feel free to reach out if you have any questions or need personalized advice.

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Team GoalFi

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