Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by branch expansion and technology-driven efficiency.
Basis of our Recommendation
AAVAS Financiers is poised for robust growth, targeting over 20% AUM growth driven by strategic branch expansion, technological advancements, and a focus on affordable housing. The company aims to enhance operational efficiency through AI integration and maintain strong asset quality. While there are challenges related to operating expenses and market conditions, the overall outlook remains positive, supported by a favorable credit rating and strategic partnerships.
Why We Like This Stock
- Targeting over 20% AUM growth with a clear strategic roadmap
- Significant investments in technology to enhance operational efficiency
- Strong asset quality and positive credit rating outlook
Things To Watch Out For
- Higher operating expenses due to investments
- Potential challenges in maintaining spreads amid market conditions
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,190 | 1,348 | 1,588 | 1,834 | 2,115 |
| Profit Before Tax (Cr.) | 624 | 733 | 840 | 1,179 | 1,366 |
| PBT Margin | 52.4% | 54.3% | 52.9% | 64.3% | 64.6% |
| Net Profit (Cr.) | 501 | 589 | 680 | 954 | 1,106 |
| EPS | 63.2 | 74.3 | 85.7 | 120.3 | 139.5 |
Company Overview
Show Company Profile
Aavas Financiers Limited provides housing finance services to low- and middle-income customers in semi-urban and rural areas in India. The company offers home loans for flats, houses, and bungalows; home construction loans for self-construction of residential houses; resale property purchase loans, and home improvement loans, including loans for tiling or flooring, plaster or painting, etc. It also provides loans against property; micro, small, and medium enterprise loans; and home loan balance transfer, as well as cash salaried plus loans and small ticket size loans. The company was formerly known as AU Housing Finance Limited and changed its name to Aavas Financiers Limited in May 2017. Aavas Financiers Limited was incorporated in 2011 and is based in Jaipur, India.