Top Broker Picks for This Market: Home First Finance and Kaynes Technology Earn Analyst Approval

In Focus: Analysts Unanimously Endorse Two Midcap Performers

As Indian equities face bouts of profit-taking and sectoral rotation, top analysts across leading brokerages are drawing attention to two standout midcap performers: Home First Finance Company India Ltd (HFFC) and Kaynes Technology India Ltd. These names have risen above market uncertainty, thanks to their strong fundamentals, favorable sector positioning, and clear growth visibility.

Leading domestic brokerage firms such as Motilal Oswal, ICICI Direct, and Axis Securities have recently reiterated their bullish stance on both stocks, calling them “robust medium-term bets” amid shifting macroeconomic winds.

Why Home First Finance Is on Every Broker’s Watchlist

Home First Finance, a housing finance company focused on low- and middle-income homebuyers in urban and semi-urban areas, has become a favorite among institutional investors due to its:

• Consistent AUM Growth: Assets under management rose by 27% YoY in FY24, fueled by steady loan disbursements and expanding demand in affordable housing.

• Strong Asset Quality: Gross NPAs were contained at 1.1%, well below the industry average.

• Stable Margins: The Net Interest Margin (NIM) stood at 6.3%, reflecting pricing power and efficient cost structures.

According to ICICI Securities, Home First Finance offers a "rare combination of prudent lending, healthy growth, and improving return ratios." Their latest report sets a 12-month target of ₹1,150, suggesting a 15–18% upside from current levels.

Further bolstering sentiment is the government’s renewed push for affordable housing under the PMAY Urban scheme. With an increasing focus on credit inclusion, HFFC stands to benefit as it continues its expansion into underbanked geographies.

Kaynes Technology: India’s EMS Play with Global Ambitions

Kaynes Technology, an electronics manufacturing services (EMS) firm with operations across high-tech verticals, is being viewed as a long-term structural story. What makes Kaynes stand out is its presence across the entire value chain—from design to deployment.

Key Drivers:

• Strong Order Book: The company has a backlog exceeding ₹3,000 crore, thanks to contracts in automotive, defense, and medical electronics.

• PLI Scheme Tailwinds: Kaynes is a key beneficiary under the Production Linked Incentive (PLI) scheme for electronics manufacturing.

• Capacity Expansion: Its upcoming facility in Telangana will double output capacity, positioning it to fulfill growing demand from both domestic and export clients.

As per JM Financial’s analysis, “Kaynes is uniquely positioned to leverage India’s shift from low-end assembly to high-value electronics manufacturing.” The firm projects a CAGR of over 35% in revenue through FY26, with improving margins driven by scale and product mix.

Motilal Oswal’s recent coverage assigned a ‘Buy’ rating, citing high visibility in revenue and earnings over the next 6–8 quarters. They suggest a target price of ₹2,300, which implies a 20% upside from current levels.

Comparative Snapshot

Broker Consensus: What Makes These Stocks Stand Out?

According to insights from Moneycontrol, both stocks feature prominently in model portfolios recommended for H2 2025, particularly for investors looking for consistent earnings visibility amid a volatile global backdrop.

Some of the key reasons brokers are drawn to these stocks include:

• Clean balance sheets and high promoter holding

• Scalable business models with wide moats

• Participation in government-led structural themes (Affordable Housing, Make in India, PLI)

Additionally, the technical setups of both stocks suggest renewed institutional accumulation, as observed in recent FII and DII flows.

What Investors Should Watch

While the fundamentals are strong, investors must be mindful of macroeconomic and sector-specific challenges:

• Interest Rate Movements: Could impact borrowing costs for Home First.

• Global Chip Supply Trends: May influence Kaynes’ input costs and turnaround times.

Still, the medium-term outlook remains robust, particularly as both companies have laid out clear capital allocation and expansion plans for FY25–26.

Final Word: Anchored Growth in Uncertain Times

In a market dominated by short-term volatility and sentiment swings, Home First Finance and Kaynes Technology stand out as fundamentally sound, future-ready businesses. Broker consensus is clear: these are not just tactical trades—they're strategic investments for portfolios seeking resilient growth.

For deeper analysis and financials, investors can explore these stocks on:

• Screener.in – Home First Finance

• Screener.in – Kaynes Technology

• NSE India – Home First

• NSE India – Kaynes

Disclosure: This article is for informational purposes only and is based on broker research, publicly available data, and SEBI-compliant financial reports. Please consult a registered investment advisor before acting on any recommendations.