Can Fin Homes - Q2 Result Update

Financial Results & Limited Review for Sept 30, 2013
Link: Click Here

Once again, the company is out with decent set of numbers, as they have been doing since last 2 years or so. The revenues and net profit continues to rise, slowly and steadily.
The revenue growth of last 6 quarters now looks like:
84 Cr -> 93 Cr -> 103 Cr -> 113 Cr -> 126 Cr -> 138 Cr
Consistency at its best!!!!!

Lets go through the numbers now.
The revenues stands at 137.91 Cr Vs 92.72 Cr YoY, which shows growth of 48.74%.
The net profit stands at 18.74 Cr Vs 14.44 Cr YoY, which shows growth of 29.78%.
Hence the EPS now stands at 9.1 Vs 7.1 last year.
The difference in percentage growth between revenues and net profit is due to the Income Tax paid by the company, which has almost doubled from last year, and higher finance cost.
The management is very optimistic about the sustained growth which will continue going forward.
The company is planning to have about 85 branches by the end of this fiscal. Till Mar '13, they had 69 branches across India.

My Views:
Even at 140 or 150, I feel Can Fin Homes is a very good bet for long term.
The company is sitting at a P/E ratio of 4.91 Vs industry P/E of 21.87. Book value of 191.44.
The most important thing that attracts me, is the consistency factor.
Obviously, we can't take the past for granted and hence will continue to keep an eye on its numbers going ahead also.
But for now, it looks like a good buy for long term.
RBI Policies and Government moves will always continue to act as a barrier or support for such housing finance companies, due to which we might see, many ups and downs in the stock price, and hence its always advisable to be a long term buyer in these stocks including Dewan Hosuing