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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%.
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