"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
Sharekhan's research report on Can Fin Homes
Can Fin Homes commands higher valuations led by superior asset quality with best underwriting practices. Inherent, to the company’s strategy it largely caters to salaried customers in metros and Tier-I/II cities. This makes its customer segment less risky with average ticket size of Rs. 21.02 lakh and ~74% of its customers are salaried and professionals. It competes with large HFCs and public/ private sector banks. We believe Can Fin Homes is one of the favoured plays among affordable/ mid size housing financiers with a healthy loan book growth and steady spreads going ahead. The company’s ability to recover market share through differential pricing for customer segments/ geographies, makes it a preferred play in the affordable space.
Outlook
We re-initiate coverage on Can Fin Homes with a Buy rating and PT of Rs. 712. At CMP, CFHL trades at 2.3x of FY23E P/BV.
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