Aadhar Housing Finance Gets High-Conviction 'Buy' From ICICI Direct — Here's Why

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ICICI Direct Report

Aadhar Housing Finance Ltd. remains an attractive play in the affordable housing finance segment with a robust business model combining efficiency, stability and prudent underwriting practice, leading to healthy and sustainable performance across cycles.

Expect AUM growth to sustain at ~19%, while steady asset quality and gradual improvement in margins and efficiency is expected to result in earnings CAGR of ~23% in FY25-27E.

Given its strong RoA of 4% and RoE of 18%+, while delivering credit growth of above 20%, valuations remain attractive at current level.

We value Aadhar at 2.7x FY27E book value and assign a target price of Rs 550. We recommend a Buy rating.

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