Source: Company website | Photo credit: Bl companies
Objective: ₹ 550
CMP: ₹ 462.90
Established in 2010, Aadhar Housing Finance is the largest player in the affordable housing space with AUM of ₹ 23,975 million rupees. Diversity in terms of business mixing, customer and distribution base remains a central force.
The business mixture is still well balanced and granular with home loans that comprise about 75 percent AUM, while LAP constitutes a 25 percent soaking. The mixture of salaried borrowers comprised 56 percent of salaried segments and 44 percent work on your own.
As of December 31, 2024, Aadhar Opera 557 branches in 21 states and territories of the Union
Aadhar is still an attractive play in the affordable housing finance segment with a robust business model that combines efficiency, stability and prudent subscription practice, which leads to healthy and sustainable performance in all cycles. Wait that AUM’s growth is maintained at approximately 19 percent, while the constant quality of assets and gradual improvement in margins and efficiency is expected to result in CAGR profits of approximately 23 percent in fiscal year 2000-27E.
Given its strong roa or 4% and ROE or 18%+, while offering a credit growth of more than 20 percent, the valuations remain attractive at the current level. We value AADHAR A 2.7X FY27E BV and assign an objective price of ₹ 550. We recommend a purchase rating.
Posted on April 11, 2025