Can Fin Homes Limited has announced a significant change in its board composition with the resignation of Chairman Shri K Satyanarayana Raju, effective December 31, 2025. The announcement was made through a regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Chairman's Departure Details

Shri K Satyanarayana Raju, who holds Director Identification Number (DIN) 08607009, will resign from his position as Chairman and Non-Executive Director from the closure of business hours on December 31, 2025. His departure is directly linked to his attaining superannuation as Managing Director and CEO of Canara Bank, the company's promoter.

Regulatory Compliance

The housing finance company has fulfilled all regulatory requirements by submitting detailed information as per SEBI Master Circular No. SEBI/HO/CFD/PoD-2/CIR/P/0155 dated November 11, 2024. The filing includes comprehensive details about the directorate change and the formal resignation letter submitted by Raju.

Corporate Structure Impact

As a representative of Canara Bank, which serves as the promoter of Can Fin Homes Limited, Raju's resignation marks the end of his tenure in the leadership role. The company has indicated that all necessary documentation, including the resignation letter, has been properly filed and made available on the company's official website at www.canfinhomes.com .

Administrative Process

The regulatory filing was signed by Company Secretary Nilesh Jain and submitted on December 31, 2025. The company has ensured full transparency by making the resignation details publicly available through appropriate channels, maintaining compliance with stock exchange listing requirements and SEBI disclosure norms.

Morgan Stanley has updated its risk-reward assessment on Can Fin Homes , rolling forward its valuation framework by six months to March 2027. The revision has led to an approximate 6% increase in the bank's scenario values and price target, even as earnings estimates remain unchanged. The brokerage continues to view Can Fin Homes as a defensive, secured lending play, backed by moderate growth prospects and a mid-teens return on equity profile, trading at less than 2x price-to-book.

Overweight Rating Maintained

Morgan Stanley has reiterated its 'overweight' rating on the stock, with a base-case price target of ₹1,060. The brokerage notes that while disbursements have picked up, overall loan growth remains muted. However, management has retained its guidance of 12–13% loan growth for FY26, supported by expected disbursements of ₹10,500 crore in FY26, compared with ₹9,850 crore estimated by Morgan Stanley.

Growth Outlook and Valuation Metrics

The brokerage believes that a sustained pickup in loan growth will be critical for improving investor interest in the stock. Despite the subdued growth environment, Morgan Stanley finds the valuation attractive. Can Fin Homes is currently valued at 1.8x FY27 estimated book value and around 12x FY27 estimated earnings, which the brokerage views as reasonable given its expectation of 16% ROE in FY28 and around 10% EPS growth in FY28.

According to the brokerage, Can Fin Homes offers a compelling combination of a fully secured, high-quality retail mortgage portfolio, sustainable growth, and healthy ROE, supported by a headline valuation that looks attractive relative to peers.

Scenario Analysis: Bull, Base and Bear Cases

Morgan Stanley has outlined three distinct scenarios for Can Fin Homes' valuation based on different market conditions and performance parameters.

Bull Case Scenario

In its bull case, Morgan Stanley values Can Fin Homes at ₹1,420. This scenario assumes a strong housing credit market, higher-than-expected loan growth, and margin improvement, driven by lower borrowing costs and reduced competitive intensity. Improved economies of scale are expected to lower operating costs, while benign asset quality keeps provisioning requirements low.

Base Case Projections

The base case valuation of ₹1,060 expects FY25–28 AUM CAGR of around 11%, with net interest income to average loans at 3.90% between FY26 and FY28, compared with 3.76% in FY25. Operating costs are projected to average 74 basis points of average assets under management during FY26–28, versus 65 basis points in FY25, while credit costs are expected to average 14 basis points, down from 21 basis points in FY25.

Bear Case Assessment

In the bear case, the stock is valued at ₹735, or 1.3x March 2028 estimated book value. This scenario factors in weak housing credit demand, resulting in lower AUM growth, higher operating costs, and deterioration in asset quality. Credit costs in this case are expected to be higher than in the base scenario.