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Can Fin Homes Target Price Raised to Rs 1,015 by Motilal Oswal

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  Published in Stocks and Investing on Sunday, February 1st 2026 at 20:12 GMT by moneycontrol.com
      Locales: Maharashtra, Karnataka, INDIA

Mumbai, February 2nd, 2026 - Leading brokerage firm Motilal Oswal Financial Services has significantly increased its target price for Can Fin Homes, a prominent housing finance company, to Rs 1,015 per share. This upward revision, representing a potential gain of over 26% from the company's current market valuation, underscores growing optimism regarding Can Fin Homes' future performance and the broader housing finance landscape.

The Motilal Oswal report, released earlier today, highlights anticipated improvements in asset quality as the primary driver behind the re-rating. This isn't occurring in a vacuum; the brokerage explicitly connects the positive outlook for Can Fin Homes to a recovering housing market and a generally bullish sentiment within the housing finance sector. The previous target price stood at Rs 890, demonstrating a substantial increase in confidence.

Housing Market Recovery Fuels Optimism

Analysts at Motilal Oswal believe that increasing housing sales are directly contributing to improved disbursement growth for companies like Can Fin Homes. This recovery is built on several factors, including easing interest rates (though inflationary pressures remain a concern monitored closely by the Reserve Bank of India), rising disposable incomes among the middle class, and pent-up demand following the economic slowdown experienced in recent years. Government initiatives aimed at affordable housing, such as the 'Housing for All by 2022' scheme (extended with revised goals), are also providing a significant boost to the sector.

Can Fin Homes, known for its focus on affordable housing and a strong presence in South India, appears well-positioned to capitalize on these favorable conditions. The company's established franchise and demonstrated collection efficiency - the ability to successfully recover loan payments - are viewed as key strengths by the brokerage.

Asset Quality a Key Focus

The emphasis on asset quality is crucial. While disbursement growth is positive, maintaining a healthy portfolio of loans is paramount for housing finance companies. Historically, Can Fin Homes has been praised for its prudent lending practices and effective risk management. The brokerage's anticipation of further improvements suggests they believe the company is navigating the current economic climate effectively, minimizing potential non-performing assets (NPAs).

Monitoring NPA levels is vital, especially considering the lingering effects of the pandemic and the potential for economic disruptions. However, the report indicates that Can Fin Homes is demonstrating resilience in this area. The recovery in housing sales naturally supports improved asset quality as borrowers are better able to meet their financial obligations.

Stock Performance and Market Reaction

As of 11:31 am today on the National Stock Exchange (NSE), shares of Can Fin Homes were trading at Rs 801.40 apiece. The announcement of the revised target price is expected to generate increased investor interest and potentially drive up the stock price. Technical analysts will be watching closely to see if the stock can break through key resistance levels.

The housing finance sector, as a whole, has been performing strongly in recent months, benefiting from the overall economic recovery. Other key players in the market, such as HDFC Bank, LIC Housing Finance, and Bajaj Housing Finance, are also experiencing positive growth. However, Motilal Oswal's specific upgrade of Can Fin Homes suggests that the company is seen as having particularly strong potential for outperformance.

Future Outlook & Potential Risks

While the outlook for Can Fin Homes appears bright, investors should remain aware of potential risks. Rising interest rates, although currently moderate, could dampen demand for housing loans. Any further economic slowdown or geopolitical instability could also negatively impact the sector. Competition within the housing finance market is also intensifying, requiring Can Fin Homes to continuously innovate and maintain its competitive edge.

Despite these potential headwinds, Motilal Oswal's revised target price signals a strong belief in Can Fin Homes' long-term growth prospects and its ability to navigate the evolving market conditions. The brokerage's analysis provides valuable insights for investors considering exposure to the housing finance sector and highlights Can Fin Homes as a potentially attractive investment opportunity.