Aavas Financiers - Growth Prospects Intact; Non-Home Loans Share To Rise: Nirmal Bang

Poised to deliver 20-25% growth in assets under management.

<div class="paragraphs"><p>A residential building. (Source: pxhere)</p></div>
A residential building. (Source: pxhere)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Key Points

We met the management of Aavas Financiers Ltd. The key takeaways from the meeting are:

  1. Disbursements normalised in June-23-July-23 and the company expects to deliver assets under management growth of 20-25% in FY24

  2. Competitive intensity remains high in housing loans; hon-housing loans portfolio share is expected to expand to 35%, driven by micro, small, and medium enterprises. lending

  3. Spreads to be maintained at ~5%; opex remains elevated as the company invests in the franchise (tech transformation, loan origination system, loan management systems roll-out).

  4. We expect AUM to clock a compounded annual growth rate. of ~22% over FY23-FY25E and expect FY25E return on assets/return on equity at 3.4%/15%.

  5. We maintain buy on Aavas with a target price of Rs 2,000 (3.4 times September 2025E adjusted book value per share).

Click on the attachment to read the full report:

Nirmal Bang Aavas Financiers Management Meet Update.pdf
SpiceJet Faces More Legal Woes: Leasing Firm Moves Court Seeking Engine Return


This report is authored by an external party. BQ Prime 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 BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.