ICICI Securities has issued a buy rating on Home First Finance Company with a target price of ₹1,450 in its research report dated May 08, 2026. According to the brokerage's assessment, the company demonstrates strong fundamentals that support the positive outlook. The target price is based on a valuation of 3x March 2027 estimated book value per share.
Home First Finance delivered impressive disbursement growth in Q4FY26, reaching ₹15.7 billion, representing a 19% quarter-on-quarter increase. As reported by ICICI Securities, this performance significantly exceeded the company's multi-quarter average range of ₹11-13 billion, indicating robust operational momentum. The strong disbursement growth provides credence to the company's potentially strong medium-term growth trajectory and suggests the transient nature of challenges witnessed in the first half of FY26.
The company demonstrated sequential improvement in asset quality metrics during Q4FY26. According to ICICI Securities research, the 1+DPD (Days Past Due) ratio declined to 4.7% in Q4FY26, marking the second consecutive quarter of improvement from its peak of 5.5% in Q2FY26. This sequential decline in delinquency rates suggests improved underlying asset quality trends and strengthening collection efficiency.
Management has expressed confidence in sustaining strong growth momentum, projecting approximately 25% AUM growth for FY27. As reported by ICICI Securities, this growth target reflects management's optimism about the company's operational capabilities and market positioning. The sustained growth trajectory supports the brokerage's positive outlook on the company's medium-term prospects.
