Aadhar Housing Finance - Pioneering Affordable Housing Space As A Category Creator: ICICI Securities

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.We initiate coverage on Aadhaar Housing Finance Ltd. with a Buy rating and target price of Rs 550, valuing it at ~three times on FY26E BVPS versus industry current average of ~2.8x for FY26E. Aadhar being an industry leader with better return on equities could deserve premium and hence there is an upside risk to the current multiple..Aadhar is a seasoned affordable housing finance company and a category creator in the affordable housing space. It commands lion share in the affordable housing finance (within listed peers) and has delivered industry-leading profitability between FY20–24. Aadhar has demonstrated superior execution by delivering robust 37% profit after tax compound annual growth rate during FY20-24 versus 500 branches; the same has enabled the company in sustaining >20% growth in disbursements between FY20–24; increased focus on scaling loan-against -property book given much higher yields at 16.5% versus home loan yields at 12.5%; andpristine asset quality – average credit cost at 33bps between FY21–24. Aadhar strives to sustain current growth runrate as it expects AUM growth at ~20% in near term driven by better productivity at newly opened branch and its plans to add 70–75 branches in FY25. .Credit cost is likely to remain at 20 bps in near term. Combination of steady growth, operating leverage and stable credit coat at ~20 bps to keep RoA robust at more than 4% over FY24–26E..Click on the attachment to read the full report:.Kalyan Jewellers - Growth-Focused Strategy Backed By Franchise-Led Expansion: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aadhar Housing Finance - Pioneering Affordable Housing Space As A Category Creator: ICICI Securities

The brokerages initiates coverage with a Buy rating and target price of Rs 550, valuing it at ~three times on FY26E book value per share versus industry current average of ~2.8 times for FY26E.

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