NBFC stock in focus after Orange Clove Investments offloads 10.6% stake in the company

Synopsis:
Home First Finance Company India came into focus after a major bulk deal, in which Orange Clove Investments B.V has sold its entire 10.6% stake in the company.

A housing finance company is in the spotlight today after large bulk deal transactions were completed on the stock exchanges on August 11. These variations show how the market and investors felt about the significant buying and selling that took place during that time. 

With a market capitalization of Rs. 12,940 crore, Home First Finance Company India Ltd is trading at Rs. 1,253, down by 2.29 percent from its previous close of Rs. 1282.2 per equity share.

What’s the deal?

As per the latest NSE bulk deal data, Orange Clove Investments B.V, sold approximately 1.09 crore shares of Home First Finance Company India, fully exiting its 10.6 percent stake for around Rs. 1,307.17 crore at an average price of Rs. 1,190.50 per share.

The entire stake was collectively acquired by institutional investors, including Morgan Stanley, Tata AIG General Insurance, Motilal Oswal MF, Kotak Mahindra MF, HDFC Life Insurance, and others.

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About the company

Home First Finance Company India (HFFC) is a technology-driven, pan-India affordable housing finance company with a hub-and-spoke network that serves 80 percent of the market.

The company targets first-time homebuyers, primarily families earning less than Rs. 50,000 per month, with housing loans averaging Rs. 1.18 million accounting for 83 percent of its Rs. 1,34,787 million AUM. 

It has a diverse base of 33 banks and financial institutions, strong liquidity of Rs. 33,789 million, and no commercial paper exposure. It’s centralized, data science-based underwriting ensures that 90 percent of loans are approved within 48 hours.

As of June 2025, it had 158 branches and 362 touchpoints across 142 districts in 13 states/UTs, serving over 1.23 lakh customers with a young workforce of 1,709 employees (median age 26).

The company’s revenue for Q1FY26 increased by 35.12 percent year over year from Rs. 336 crore to Rs. 454 crore. Whereas, net profit rose by 35.23 percent yearly from Rs. 88 crore to Rs. 119 crore. 

It is trading at a price-to-earnings (P/E) ratio of 31.4x, which is higher than the industry average of 20.1x. A return on equity (ROE) of about 16.5 percent and a return on capital employed (ROCE) of about 11.4 percent demonstrate the company’s financial position. The debt-to-equity ratio of the company stands at 3.79. 

Written by Akshay Sanghavi

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