Aadhar Housing Finance
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Aadhar Housing Finance is positioned for sustainable growth, driven by management's strategic focus on expanding into Tier-III and Tier-IV markets, targeting a 20% growth in assets under management (AUM) and profit after tax (PAT). The company's commitment to leveraging AI for operational efficiency and its disciplined execution strategy are expected to enhance margins despite competitive pressures. Management's confidence in maintaining strong asset quality, with gross non-performing assets (GNPA) projected to decline to 1.1% by FY27, supports Vista's forecast of moderate revenue growth and stable margins. The favorable macro environment, characterized by supportive government policies for affordable housing, further underpins the company's growth trajectory. However, the competitive landscape remains a watchpoint, as intensified competition in urban markets could pressure yields. Over the next 12-24 months, Aadhar's focus on emerging markets and branch expansion will be critical in capturing market share and driving profitability. Overall, while the company faces challenges, its strategic initiatives and the structural growth in the affordable housing sector position it well for future success
Why We Like This Stock
- Management's target of 20% AUM and PAT growth reflects confidence in capturing market opportunities
- Strategic focus on Tier-III and Tier-IV markets enhances growth potential in underserved segments
- Government support for affordable housing and improving pricing power bolster the company's competitive position
Things To Watch Out For
- Intensifying competition in urban markets poses risks to margins and yield stability
- Weak cash conversion relative to the asset base may impact operational flexibility
- Cautious investor sentiment could affect market perception and share price performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,587 | 3,108 | 3,673 | 3,834 | 4,528 |
| Profit Before Tax (Cr.) | 960 | 1,173 | 1,422 | 1,874 | 2,253 |
| PBT Margin | 37.1% | 37.8% | 3871.5% | 48.9% | 49.8% |
| Net Profit (Cr.) | 742 | 924 | 1,110 | 1,464 | 1,761 |
| Earnings Per Share | 17.0 | 21.1 | 25.4 | 33.5 | 40.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 625 | 17-Jun-2026 |
| IDBI Capital | ▲ Buy | 580 | 03-Aug-2026 |
| Nomura | ▲ Buy | 615 | 06-May-2026 |
Company Overview
Show Company Profile
Aadhar Housing Finance Limited, a housing finance company, engages in the housing finance business in India. The company offers loans for residential property; plot purchase and construction; home improvement and extension loans; commercial property construction and acquisition; and loans against residential properties. It also provides loans against property; and other property related services. It serves individuals, companies, corporations, societies, and association of persons. The company was formerly known as DHFL Vysya Housing Finance Limited and changed its name to Aadhar Housing Finance Limited in August 2017. Aadhar Housing Finance Limited was incorporated in 1990 and is based in Mumbai, India.