Goal: ₹550
CMP: ₹416.60
We provoke protection on Aadhar Housig Finance with a Purchase ranking and RGM-based FV of ₹550/share. Aadhar stands out versus most reasonably priced friends as a result of a bigger stability sheet, longer classic and superior RoEs. However, its mortgage development (21 per cent CAGR throughout FY2024-27E) is comparable extra to mature housing finance firms than fast-growing smaller reasonably priced HFCs.
Aadhar (AUM ₹21,100 crore in FY2024), the most important amongst in contrast reasonably priced HFCs with 7 per cent market share in FY2024, leverages its diversified buyer (57 per cent salaried, 43 per cent self-employed AUMs) and geographic profile (15 per cent of AUM from Uttar Pradesh).
We anticipate Aadhar to ship 22 per cent EPS CAGR throughout FY2024-27E on the again of 21 per cent AUM development, near-stable spreads, greater charges and constant enchancment in working leverage.
Key dangers embody decrease NIM or development as a result of improve in competitors in bigger facilities or from massive HFCs eyeing the reasonably priced housing house, efficient execution of constant development methods, particularly as a result of its multipronged development and appraisal method, and threat to asset high quality from rising share of self-employed and implications of cross-default and crossacceleration clauses in mortgage agreements
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