Can Fin Homes Falls 15% In Three Days After CEO Exit, Ransomware Attack
On Tuesday, the scrip fell as much 6.7% reacting to the developments. In total, the stock has fallen over 15% in the last three sessions.
Jefferies termed Kousgi’s resignation as a “setback” as Can Fin delivered a healthy balance of growth and good asset quality, despite the pandemic.
“We await clarity around new CEO and his growth strategy. An external CEO may be viewed more favourably by investors. Uncertainty around upcoming management change would be an overhang , near-term, but core fundamentals stays healthy,” Jefferies said in a note dated Sept. 19, retaining ‘buy’ on the company.
Jefferies has a target price of Rs 730 apiece on Can Fin Homes, implying a potential upside of 15%. It sees strong demand for mid-ticket housing loans in salaried segment and competitive funding costs driving 18% loan CAGR over FY22-25.
Of the 15 analysts tracking the company, 13 maintain a ‘buy’ and two suggest a ‘hold’, according to Bloomberg data. The 12-month consensus price target implies an upside of 26.8%.