Investor Presentaiton

3 furtisments HELYEL Home First Finance Company India Ltd. HDFC securities 20 Click. Invest. Grow. YEARS enhanced liquidity management. The company is planning to increase its LAP mix from current 6% of AUM to 15% of AUM over the medium term which is likely to support yields. The cost of funds is on a declining trend with improved borrowing mix. Management has guided to reduce GNPA by 10 bps every month for the next 2 to 3 quarters. With gradual economic pickup and improved sentiments, we believe that H2FY22 will post better overall performance compared to the first half. The stock at LTP is trading at 3.2x FY23 ABV. We believe that investors can buy HFFC at LTP of Rs. 593.5(3.2xFY23E ABV) and add more at Rs.528 (2.85xFY23E ABV) for the base case fair value of Rs.630 (3.4xFY23E ABV) and for the bull case fair value of Rs.677 (3.65xFY23E ABV) over the next two quarters. Financial Summary Particulars (Rs Cr) Q1 FY22 Q1 FY21 YoY (%) NII 83 77 8 Q4 FY21 75 QoQ (%) FY20 FY21 FY22E FY23E 11 198 248 304 386 PPOP 61 57 6 51 19 124 166 213 283 PAT 35 39 -9 31 12 79 100 123 168 EPS (Rs) 10.1 11.5 14.1 19.2 ABV (Rs) 116.2 153.4 166.3 185.3 P/E (x) 58.7 51.8 42.2 30.9 P/ABV (x) 5.1 3.9 3.6 3.2 ROAA (%) 2.7 2.5 2.5 2.9 ROAE (%) 10.9 8.7 8.5 10.6 (Source: Company, HDFC sec) Recent Developments Q1FY22 Result Update During the quarter, Net Interest Income stood at Rs. 83 Cr, up 11% on QoQ basis. Operating profit at Rs.60.6 Cr was up 6%/19% YoY/QoQ. The net profit was impacted by higher provisioning due to rise in NPA levels on account of COVID-19 second wave. AUM grew by 18.5% YoY/3.7% QoQ to Rs.4294 Cr in Q1FY22. Disbursement of Rs.305 Cr was down 32.6% QoQ (though compared to peak quarter) and up 476% YoY (due to lower base). Growth was broad based across all the markets. The company completed transaction worth Rs.118 Cr on Direct assignment business. FRETAILRES RETAILRESEARCH

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