Home First Finance Company India shares rally 5% post Rs 1,307 crore block deals

Shares of Home First Finance Company India Ltd climbed 5 per cent in Monday's trade after 1,09,80,033 shares worth Rs 1,307.17 crore changed hands on the counter in block deals. The stock rose 5.09 per cent to hit a high of Rs 1264.35 apiece on NSE, as the block deal took place at Rs 1,190.50 per share, which was at a mere 0.98 per cent discount over the Friday's closing price of Rs 1,202.30 apiece, hinting at strong investor demand. 

Orange Clove Investments BV was the likely seller. It was looking to sell 10,980,033 shares, or 10.3 per cent stake, in the housing finance company (HFC) for up to Rs 1,255 crore or $143 million in total consideration via block deals, Business Today reported earlier today. As per the report, shares were to be offloaded by the Warburg Pincus entity at an indicative price of Rs 1,143-1,202 per share, which suggests up to 4.9 per cent discount. 

ICICI Securities was the sole bookrunner for the deal. The deal was to take place by way of one or more share sales on the screen-based trading platform of domestic stock exchanges. Orange Clove Investments is a public shareholder in Home First Finance Company India and held 1,09,80,033 shares, or 10.64 per cent stake, in the company as of June 30, 2025. Promoter holding in Home First Finance Company stood at 12.43 per cent at the end of June quarter. 

For the June quarter, Home First Finance Company India posted an in line growth in AUM. On the operational front, NIM expansion led to an uptick in NII growth. 

"While C/I improved but credit cost came in higher than expected. Asset quality was broadly stable, but early indicators show weakness," Nuvama said.

Nuvama said the HFC delivered resilient growth, navigating a seasonally slow first quarter effectively. Given the healthy offtake in disbursements on a quarterly basis, credit growth is expected to be in line with the management’s guidance, it said.

"An improvement in its funding profile through better ratings and QIP, HOMEFIRS positions it favourably for future growth and superior execution vis-à-vis its peers, underlining its strength as a high-quality player in the affordable housing finance segment.
We maintain ‘BUY’ with a TP of Rs 1,578 per share," it said.

Home First’s disbursements in the June quarter were 3 per cent below YES Securities' expectation. The annual growth decelerated further to 7 per cent against 23 per cent YoY in  preceding three quarters. 

"Excluding co-lending disbursements, the growth in core segment disbursements was 4 per cent YoY. Growth in loan originations has been impacted in the  markets of Tamil Nadu (team stabilization), Telangana (team stabilization) and UP  (tightening of property underwriting in certain locations). Business growth in AP also likely moderated during the quarter. HFF had tightened underwriting and selection in  higher-ticket segment (>Rs25 lacs) across markets from Q3 FY25," the brokerage said.

Dalal & Broacha Stock Broking said Home First Finance reported a soft Q1FY26, impacted by a rise in early delinquencies and higher NPAs, which weighed on disbursement growth. While asset quality trends showed improvement in July 2025, any further spike in NPLs remains a key risk to watch, it said.

"Despite this, the outlook for affordable housing finance is robust, supported by favorable macros such as rising demand, low penetration, government initiatives, and sustained urbanization. Management is targeting ambitious AUM growth, aiming for Rs 20,000 crore by FY27 and Rs 30,000 crore by FY30," it said.