ICICI Securities keeps Home First at Buy and upgrades Chola Finance

what happened

ICICI Securities reports that Home First Finance posted its highest-ever quarterly disbursements in Q2 FY27, at INR 17bn, up 32% year on year, even as competition in affordable housing finance intensifies. AUM grew 27% year on year while spreads stayed above 5%. Return on equity rose to 15% and the cost-income ratio fell to 17%. The broker keeps its Buy rating and Rs 1,450 target.

According to the same report, Cholamandalam Finance grew AUM 25% year on year, ahead of its 23% guidance, and net credit cost eased to 1.4% in Q2 FY27. Disbursements rose 21% quarter on quarter to INR 358bn. ICICI Securities upgraded the stock to Buy from Add and kept its Rs 1,950 target.

why it matters

This is a broker's company-level research update rather than a market-wide event. For investors in Indian non-bank lenders, disbursement growth, portfolio quality and credit costs are the key metrics in these reports. The target prices are the broker's own estimates, not a forecast from Newsmetry.

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