Home First Finance Company India Ltd. (HOMEFIRST) AI Stock Analysis

• Market Cap: ₹111.98B
• Dividend Yield: 0.33%
• Average Volume (3M): 7.04K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.29
• Revenue Growth: 31.75%
• EPS Growth: 21.70%
• Country: IN
• Employees: 1,249
• Sector: Real Estate
• Sector Strength: 53
• Industry: Financial - Mortgages
• EPS (TTM): 13.32
• Shares Outstanding: 104,246,020
• 10 Day Avg. Volume: 5,776
• 30 Day Avg. Volume: 7,043
• PEG Ratio: 0.99
• Price to Book (P/B): 3.56
• Price to Sales (P/S): 6.77
• P/FCF Ratio: -4.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,372.50
• Price Target Upside: 25.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 51.73
• Revenue Forecast (FY): ₹11.15B

• Rating: 66 Neutral
• Price Target: ₹1,167.00 ▲(6.72% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by solid profitability and revenue growth, partially offset by leverage and negative operating/free cash flow. Technicals are currently weak with the stock trading below major moving averages, and valuation is moderate with a low dividend yield.

Positive Factors

Strong revenue growth and high margins

Home First shows durable top-line momentum and very high gross margins (statement notes margins consistently above 90%). Sustained revenue growth supports scaling of originations and preserves pricing power, underpinning long-term profitability even as loan books expand.

Focused affordable housing franchise

A strategic focus on underserved and first-time homebuyers creates a structurally large, sticky addressable market with lower product commoditization. Technology-led origination improves cost-to-serve and customer acquisition efficiency, supporting sustainable market share gains over the medium term.

Improving return on equity and profitability

ROE improvement indicates management is generating higher shareholder returns from equity as margins and cost management improve. Higher profitability capacity enhances internal capital generation potential and supports disciplined growth without eroding returns over time.

Negative Factors

High leverage / debt reliance

Significant leverage is typical in mortgages but raises structural vulnerability to funding stress and interest rate cycles. Elevated debt levels constrain financial flexibility, increase refinancing risk, and can amplify earnings volatility during market dislocations over the coming months.

Weak cash conversion; negative operating cash flow

Negative operating cash flow signals accounting profits are not yet translating into cash, implying ongoing reliance on external funding to support loan growth. Persistent weak cash conversion elevates funding dependence and raises questions about sustainable self-funded expansion.

Funding and interest income sensitivity

Business model reliant on net interest income and wholesale borrowings exposes margins to funding-cost increases. Combined with leverage and weak cash conversion, this creates a structural sensitivity to rate moves and wholesale market access that can pressure profitability and growth options.

Home First Finance Company India Ltd. Business Overview & Revenue Model

Company Description

Home First Finance Company India Limited operates as a housing finance company in India. The company offers housing loans for the purchase or construction of homes, loans against property, loans for extension and renovation of home, and loans for purchase of commercial property. It serves salaried and self-employed customers. The company was incorporated in 2010 and is headquartered in Mumbai, India.

How the Company Makes Money

Home First Finance Company generates revenue primarily through the interest income earned on the home loans it disburses to customers. The company charges interest on these loans, which is typically higher than the cost of funds it raises through various sources, including bank borrowings and bonds. Additionally, HOMEFIRST may earn fees from processing loan applications, loan origination, and other related services. Key revenue streams include interest income from loans, fees from ancillary services, and potential income from insurance products associated with home loans. The company may also engage in strategic partnerships with real estate developers and financial institutions, which can lead to increased loan disbursements and additional revenue opportunities.

Home First Finance Company India Ltd. Financial Statement Overview

Summary

Income statement strength (85) shows solid revenue growth and improved profitability with high margins, but this is tempered by balance sheet leverage (70) and weak cash conversion (cash flow score 60) including negative operating and free cash flow.

Income Statement

Home First Finance has demonstrated strong revenue growth over the years, with a revenue increase from 2024 to 2025. The gross profit margin remains high due to the nature of the mortgage industry, with margins consistently above 90%. The net profit margin has improved significantly, indicating enhanced profitability. EBIT and EBITDA margins are strong, reflecting effective cost management.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which is typical in the financial sector. However, return on equity has shown improvement, reflecting better profitability for shareholders. The equity ratio indicates a moderate reliance on debt financing, which poses potential risks in volatile markets.

Cash Flow

The operating cash flow has been negative in recent years, which is concerning as it suggests cash outflows from core operations. Despite this, free cash flow has shown signs of growth, although it remains negative. The ratios of operating and free cash flow to net income highlight challenges in translating accounting profits into actual cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.33B	13.25B	9.80B	6.93B	4.78B	4.08B
Gross Profit	5.33B	4.88B	3.93B	3.21B	2.13B	1.49B
EBITDA	5.92B	5.48B	4.42B	3.23B	2.55B	1.59B
Net Income	4.13B	3.82B	3.06B	2.28B	1.86B	1.00B
Balance Sheet
Total Assets	136.73B	122.12B	95.34B	67.37B	51.17B	45.10B
Cash, Cash Equivalents and Short-Term Investments	17.29B	9.38B	8.22B	5.80B	6.61B	10.89B
Total Debt	96.74B	95.51B	73.02B	48.13B	34.67B	30.54B
Total Liabilities	98.18B	96.90B	74.12B	49.20B	35.43B	31.30B
Stockholders Equity	25.21B	25.21B	21.21B	18.17B	15.74B	13.81B
Cash Flow
Free Cash Flow	-10.63B	-22.10B	-19.16B	-14.58B	-8.11B	-2.26B
Operating Cash Flow	-10.56B	-21.98B	-19.08B	-14.51B	-8.07B	-2.23B
Investing Cash Flow	2.40B	-2.12M	-2.17B	-2.84B	8.04B	-6.15B
Financing Cash Flow	6.67B	22.17B	24.70B	13.53B	4.11B	9.00B

Home First Finance Company India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1093.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HOMEFIRST, the sentiment is Negative. The current price of 1093.55 is below the 20-day moving average (MA) of 1165.62, below the 50-day MA of 1130.36, and below the 200-day MA of 1218.83, indicating a bearish trend. The MACD of -5.66 indicates Positive momentum. The RSI at 39.69 is Neutral, neither overbought nor oversold. The STOCH value of 22.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:HOMEFIRST.

Home First Finance Company India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANFINHOME	73 Outperform	₹108.07B	11.69	―	1.37%	8.92%	12.32%
HOMEFIRST	66 Neutral	₹111.98B	20.38	―	0.33%	31.75%	21.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AAVAS	64 Neutral	₹98.40B	17.04	―	―	―	―
REPCOHOME	62 Neutral	₹23.21B	5.62	―	1.61%	8.10%	2.97%
APTUS	58 Neutral	₹119.42B	14.79	―	1.60%	28.47%	24.63%
INDIASHLTR	55 Neutral	₹78.86B	17.57	―	0.60%	35.30%	41.06%

Home First Finance Company India Ltd. Corporate Events

Home First Finance Publishes Q3 FY26 Earnings Call Transcript

Home First Finance Company India Limited has released the transcript of its earnings conference call for the quarter ended December 31, 2025, held with analysts and investors on January 23, 2026. The disclosure, made under SEBI’s listing regulations and available on the company’s website, enhances transparency for shareholders and market participants by providing detailed management commentary on the company’s quarterly performance and financial outlook, and underscores its adherence to regulatory reporting and investor communication norms.

Home First Finance Schedules Series of Investor and Analyst Meetings in Mumbai

Home First Finance Company India Ltd. has announced that its officials will hold one-on-one meetings with investors and analysts on January 29, 2026 and will participate in two key investor conferences in Mumbai: the Systematix India Annual Conference (MANTHAN) on February 9, 2026 and Axis Capital’s Flagship India Conference on February 10, 2026. The company said discussions at these in-person group and one-on-one meetings will be based solely on information already available in the public domain, including its latest investor presentation, underscoring its compliance with SEBI’s disclosure norms and its ongoing efforts to engage proactively with institutional investors and market participants.

Home First Finance Publishes Q3 and Nine-Month FY26 Results in Newspapers

Home First Finance Company India Limited has published its reviewed financial results for the quarter and nine months ended December 31, 2025 in national English daily Mint and regional Marathi daily Pratahkal, in compliance with Regulation 47 of SEBI’s Listing Obligations and Disclosure Requirements. By formally notifying the stock exchanges of these newspaper publications, the company underscores its adherence to disclosure norms and transparency requirements, ensuring investors and other stakeholders have broad public access to its latest financial performance data.

Home First Finance Schedules One-on-One Meets With Analysts and Investors

Home First Finance Company India Limited has announced that its officials will hold one-on-one meetings with analysts and institutional investors on January 27 and February 2, 2026, in line with SEBI’s disclosure norms. The company will also upload an updated investor presentation on its website following a board meeting on January 22, 2026, and will notify stock exchanges accordingly, reinforcing its engagement with the market and transparency toward shareholders and prospective investors.

Home First Finance Schedules Q3 FY26 Earnings Call With Analysts and Investors

Home First Finance Company India Limited has scheduled an earnings conference call with analysts and institutional investors on January 23, 2026, at 4:00 p.m. IST to discuss its reviewed financial results for the quarter and nine months ended December 31, 2025. Senior management, including the managing director and CEO, CFO, and head of treasury and investor relations, will host the call, with dial-in details and the accompanying investor presentation to be made available to stock exchanges and on the company’s website, underscoring its ongoing commitment to transparent communication with capital market participants.

Home First Finance Receives ESG Score of 75 from SEBI-Registered Rater

Home First Finance Company India Limited has received an independently assigned ESG score of 75 from ESG Risk Assessments & Insights Limited, a SEBI-registered Category I ESG Rating Provider. The disclosure of this rating under SEBI’s listing regulations underscores the company’s emphasis on environmental, social and governance practices, potentially strengthening its credibility with investors and other stakeholders who are increasingly factoring ESG performance into their assessment of financial institutions.

Home First Finance Allots ESOP Shares, Marginally Increases Paid-Up Capital

Home First Finance Company India Limited has allotted 28,601 equity shares of face value Rs. 2 each following the exercise of vested employee stock options under its ESOP II, ESOP 2021 and ESOP 2024 schemes. As a result, the company’s paid-up share capital has marginally increased from Rs. 20.77 crore to Rs. 20.78 crore, with the total number of equity shares rising from 10,38,94,611 to 10,39,23,212. The newly issued shares will rank pari passu with existing equity shares, and the company is in the process of completing listing formalities, underscoring its continued use of equity-based incentives to align employees’ interests with shareholder value while causing only minimal dilution for existing investors.

Home First Finance to Meet Investors and Analysts to Discuss Insights

Home First Finance Company India Limited has announced that its officials will hold one-on-one meetings with analysts and institutional investors on December 22 and 23, 2025. These meetings aim to provide financial insights and foster transparency by using publicly available documents, reflecting the company’s commitment to maintaining strong investor relations for informed stakeholder engagement.

Home First Finance Schedules Investor Meetings for December

Home First Finance Company India Limited has announced a schedule for upcoming meetings with analysts and institutional investors on December 17 and 18, 2025. These interactions aim to discuss the company’s performance and strategic outlook, using publicly available documents to guide discussions. This engagement reflects the company’s commitment to transparency and maintaining strong relationships with its stakeholders.