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Aadhar Housing Finance Shares May Rally 29%, Says ICICI Securities — Here's Why

Aadhar is the only affordable housing finance company to have delivered 18% RoE in the past; hence, its near-term focus remains regain 18% RoE alongside RoA of 4.24.4%.

Aadhar Housing Finance Shares May Rally 29%, Says ICICI Securities — Here's Why
With a 29% upside potential, ICICI Securities believes the stock continues to offer an attractive risk-reward profile within the housing finance space.
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STOCKS IN THIS STORY
Aadhar Housing Finance Ltd
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Aadhar Housing Finance Company Ltd. shares are likely to remain in focus after ICICI Securities reiterated its ‘Buy' rating on the stock, citing strong growth visibility in the low-income housing segment and a favourable structural demand outlook.

The brokerage has maintained a target price of Rs 625, implying a potential upside of around 29% from current levels.

Strong growth visibility

According to the brokerage Aadhar is well placed in the low income housing space, equipped with the largest distribution network of >620 branches, as on Mar'26; it plans to reach >750 branches by FY28 (50–60 new branches per year).

To sharpen focus on execution and quality, Aadhar has divided its distribution in two verticals – urban and emerging. It is the first affordable housing finance company to have such a differentiated distribution strategy. Overall, it expects 18–20% disbursement growth and 20–22% AUM growth in the near term.

Competitive positioning remains strong

Aadhar is the only affordable housing finance company to have delivered 18% RoE in the past (FY24); hence, its near-term focus remains regain 18% RoE alongside RoA of 4.2–4.4%. While it acknowledges yield pressure amid increasing competition, Aadhar is confident of sustaining spreads of >5.5%.

Click on the attachment to read the full report:

Isec Aadhar Update.pdf
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