Buy Home First Finance; target of Rs 1500: Motilal Oswal

By Admin

12 Jun, 2025

Motilal Oswal, one of India's leading brokerage and financial services firms, has issued a bullish recommendation on Home First Finance Company (HomeFirst), assigning a Buy rating with a target price of ₹1500, as per their latest research report dated June 10, 2025.

Digital-First Approach to Empower Homeownership

HomeFirst, in its FY25 Annual Report, emphasized its vision of accessible and inclusive home ownership. By adopting a digital-first model, the company has made housing finance more agile, efficient, and user-centric. From paperless applications to AI-driven credit assessments, HomeFirst is reshaping the traditional home loan landscape with technology at its core.

The report beautifully uses a metaphor to reflect HomeFirst’s mission: “Every remarkable structure begins beneath the surface, hidden yet essential.” This sentiment positions the company as not just a financier but as a catalyst for change helping families lay a strong foundation for their dreams.

Strong Growth Outlook

Motilal Oswal's bullish stance stems from impressive financial metrics and robust growth potential. Here are the key highlights from the outlook:

• Attractive Valuation: Trading at ~2.7x FY27E P/BV
  
  

• High Growth Projections: Estimated AUM and PAT CAGR of ~26% and ~30%, respectively, over FY25–FY27
  
  

• Efficient Returns: Projected RoA and RoE of 3.8% and 14.2%, respectively, by FY27
  
  

• Preferred Pick: HomeFirst continues to be Motilal Oswal’s top recommendation in the Affordable Housing Finance (AHF) segment
  
  

Conclusion

Backed by a scalable digital infrastructure, customer-first philosophy, and strong fundamentals, Home First Finance is emerging as a standout performer in the AHF space. With a target of ₹1500 and a clear roadmap for sustainable growth, it presents a compelling investment opportunity for long-term investors.