A chance to earn money from the stock market... This ₹1,200 stock will surpass ₹1,450! Brokerage gives it a 'Buy' rating

Everyone is looking for safe investments and excellent returns in the stock market. If you're considering adding a stock to your portfolio that could deliver significant profits in the future, betting on Home First Finance could prove to be a profitable deal.

ICICI Securities, a well-known brokerage firm, has expressed its full confidence in this housing finance company and has given it a 'Buy' rating. 

The brokerage has set a new target price of Rs 1,450 per share. Currently, the stock is trading around Rs 1,200 on the BSE. This means that the stock could see a significant upside of around 21% from its current price.

Loans are being distributed rapidly, business picks up new pace

The true strength of any finance company is measured by its loan disbursement in the market. On this front, Home First Finance has completely shaken off its previous sluggishness. 

In the January-March 2026 quarter, the company disbursed new loans worth ₹15.7 billion. This figure is 19% higher than the previous quarter. Most importantly, the company had been stuck in an average range of ₹11 to ₹13 billion for the past several quarters. 

By breaking this barrier, the company has clearly demonstrated its strong growth prospects in the medium term. The minor challenges that were seen between April and September 2026 now appear to have completely disappeared.

There has been a significant decline in bad loans, and asset quality has improved.

Disbursing loans is one thing, but timely recovery is paramount. Home First Finance's loan book now appears cleaner and safer than ever. The proportion of customers who were late in paying their EMIs by one day or more (known as 1+ DPD in technical terms) has declined to 4.7%. 

This figure had peaked at 5.5% in July-September 2025. This decline for the second consecutive quarter is a strong indication that the company's asset quality, i.e., loan quality, is improving significantly.

Dividend gift to investors along with bumper profits

The company's financial results also bear testimony to its strong business model. In the January-March 2026 quarter, the company's net profit jumped 42.8 percent year-on-year to ₹149.4 crore (approximately $1.49 billion). 

In the same period a year ago, it was ₹104.6 crore (approximately $1.04 billion). Similarly, the company's net interest income (NII) also increased by 36.5 percent to ₹306.1 crore (approximately $3.06 billion). 

The company's total assets under management (AUM) also increased by nearly 25 percent to ₹15,878 crore (approximately $1.58 billion). Management is confident that 25 percent AUM growth will be easily maintained. 

During this strong period of profit, the company has also announced a dividend of ₹5.20 per share for its investors. This amount will be credited to investors' accounts within 30 days of approval at the AGM.

Strong market cap, strong track record of the stock

Home First Finance's market dominance and investor confidence are steadily growing. Today, it has become a company with a market cap of over ₹12,500 crore. Within just one month, the stock has gained 13%. 

The company's promoters' confidence in its business is evident from the fact that they retain a 93.01% stake as of the end of March 2026. With a face value of ₹2, this stock has a 52-week high of ₹1,518.80, while its low was ₹893.95.