Analysts stay bullish on Aadhar Housing Finance, with some elevating goal costs following the corporate’s December quarter numbers that got here according to their estimates. The corporate continues to take care of its management place among the many reasonably priced housing finance firms (AHFCs), with an AUM of ₹240 billion as of December 2024.
Analysts observe that the corporate’s portfolio is well-diversified, with no single state accounting for greater than 14% of its AUM. It additionally has one of many largest distribution networks, comprising over 550 bodily branches (34 added in 9MFY25), which they imagine are key enablers of its regular and sustainable AUM progress.
They additional said that the corporate is on monitor to realize its FY25E disbursement and AUM progress steerage of roughly 18–20% and 20–22%, respectively, whereas sustaining credit score prices inside the guided vary of 25–27 foundation factors.
Aadhar’s Q3FY25 PAT got here in at ₹2.4 billion, up 18% year-on-year (YoY) and 5% quarter-on-quarter (QoQ), pushed by robust NII progress of 27% YoY and eight% QoQ. Nevertheless, decrease payment earnings as a result of reductions provided by Aadhar led to general income progress of 20% YoY and 5% QoQ.
Following the corporate’s December quarter outcomes, Japanese brokerage agency Nomura retained its ‘purchase’ name on the inventory with a goal value of ₹560 per share. The inventory stays the brokerage’s most well-liked decide within the reasonably priced housing phase as a result of its geographically diversified mortgage e-book and robust profitability metrics.
Nomura estimates an EPS CAGR of 21% throughout FY25-27F, with a mean RoA/RoE of 4.5%/17% over the identical interval. Equally, international brokerage agency Citi has additionally maintained its ‘purchase’ name on the inventory, with a goal value of ₹565 per share. Investec has set a goal value of ₹600 per share, together with a ‘purchase’ ranking.
“Aadhar stays one of many regular performs within the 20%+ compounding part, with minimal asset high quality dangers as a result of its publicity to residence loans, largely within the (formal and casual) salaried phase,” stated home brokerage agency Kotak Institutional Equities.
Inexpensive housing loans, as a phase, are thought of a safer asset class within the present surroundings, given the uncertainty in different lending companies on the decrease finish. Kotak revised its estimates downward by 0.5-1.7% to replicate yield strain and barely increased working bills. Nevertheless, it retained its ‘purchase’ ranking and marginally raised the goal value to ₹560 per share from the sooner ₹550.
Inventory value historical past
Aadhar Housing Finance shares have been sliding over the past 4 months, closing within the pink with every passing session. After reaching an all-time excessive of ₹516.65 per share in September, the inventory has corrected by 26% to this point.
Nonetheless, it’s nonetheless up 22% from its IPO value of ₹315. The corporate’s shares debuted on Dalal Avenue in Could 2024, itemizing at ₹329 per share, which was 4.6% increased than their difficulty value.
Disclaimer: The views and proposals given on this article are these of particular person analysts. These don’t characterize the views of Mint. We advise traders to verify with licensed specialists earlier than taking any funding choices.
