Home First Finance IPO: Strong growth prospects justify higher valuations

Home First Finance is an affordable housing finance company which targets homebuyers in the low- and middle-income group. Nearly three-fourths of its employees are in the salaried category; self-employed people account for the rest. While the company has a presence in 11 states and a network of 70 branches, it has the biggest exposure to Gujarat, Maharashtra and Tamil Nadu. 

Most analysts believe the company has a long growth runway given its small size and the niche market it caters to. In addition to this, analysts at IIFL Secu­ri­ties believe its strong parentage, low non-performing assets (NPA), and a tier-1 capital