Can Fin Homes Moat Analysis: Score & Risks
Can Fin Homes Ltd.
A first-pass moat teardown of Can Fin Homes Ltd., built from single-pass filing evidence. Free note — provisional, and the full two-pass deep dive may revise it.
First-pass narrow → wide read — primary edge in Intangible Assets. Provisional, single-pass evidence.
Can Fin Homes Ltd. scores 5.58 on MoatSCORE 6.0 — a narrow → wide moat in Housing Finance. This is a first-pass note: the dimensional read and the filing receipts below come from a single GFIP evidence pass, not the full two-pass deep corpus behind our flagship deep dives. Provisional — published free while the deep version is queued.
Seven dimensions of moat
Ordered by contribution. Each dimension carries a verified filing quote, graded [M] mechanism or [O] outcome.
“Can Fin Homes is a part of the Canara Group Financial Conglomerate led by Canara Bank”
“our vision documents did, we need to -- we plan to have about 300 branches by FY '28. We are currently at 249. So next 2 years, we plan to open 25 branches in each year.”
“So basically the number of contracts per month have remained the same, which is something we know with direct sourcing will be expected to increase.”
“The company's operating cost remained in control with operating expense to average total assets at 0.57% (FY20: 0.54%) and cost to income at 15.22% (FY20: 15.60%) in FY21 which are one of the lowest in the industry”
“we still have about 54% of our loans, which are on annual reset. So while we have announced the rate benefit, the actual pass on will happen to those customers as and when the reset dates come”
“The company's overall gearing improved to 7.54x as on March 31, 2021 as against 8.88x as on March 31, 2020 aided by internal accruals, however, the same continues to remain high”
D8 rating: ADEQUATE. Not part of the moat score — it governs the cost of equity and the fade window. First-pass; not yet deep-reviewed.
The barrier gate — first-pass
Effective barrier 6.0 — clears the gate. First-pass estimate.
Deep two-pass review. This draft rests on a single GFIP evidence pass; the full 10-year AR + concall corpus may move the read.
The barrier gate. A firmer replication or bypass estimate is the most likely thing to shift the band.
Adverse events. Any governance, regulatory or funding shock captured in D8 could re-rate the fade window.
Where this note fits. This company is one of 113 Indian companies we have scored for moat durability — 88 narrow, 25 narrow-trending-wide, none wide. The full ranked read: Wide-Moat Stocks in India: We Scored 113 Companies and Found None. Every score, dimension by dimension, is free in the Moat Screener.
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