⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
AADHARHFC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | AADHARHFC | Market Cap | 20,814 Cr. | Current Price | 480 ₹ | High / Low | 548 ₹ |
| Stock P/E | 20.0 | Book Value | 159 ₹ | Dividend Yield | 0.00 % | ROCE | 11.4 % |
| ROE | 16.9 % | Face Value | 10.0 ₹ | DMA 50 | 484 ₹ | DMA 200 | 479 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | 0.20 % | PAT Qtr | 294 Cr. | PAT Prev Qtr | 266 Cr. |
| RSI | 47.4 | MACD | -2.09 | Volume | 4,89,387 | Avg Vol 1Wk | 4,87,435 |
| Low price | 340 ₹ | High price | 548 ₹ | PEG Ratio | 0.74 | Debt to equity | 2.56 |
| 52w Index | 67.2 % | Qtr Profit Var | 22.7 % | EPS | 23.8 ₹ | Industry PE | 16.4 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 266 Cr. to 294 Cr. (+22.7% variance), showing healthy growth momentum.
- Margins: ROE at 16.9% is strong, while ROCE at 11.4% is moderate compared to peers.
- Debt: Debt-to-equity ratio of 2.56 indicates high leverage, which adds financial risk.
- Cash Flow: Profitability supports cash generation, but debt levels may pressure liquidity.
💹 Valuation Indicators
- P/E Ratio: 20 vs. industry average of 16.4 — slightly expensive.
- P/B Ratio: Current price (₹480) vs. book value (₹159) → ~3.0x, premium valuation.
- PEG Ratio: 0.74, suggesting growth is reasonably priced.
- Intrinsic Value: Moderately stretched valuation, supported by earnings growth.
🏢 Business Model & Competitive Advantage
- Aadhar Housing Finance focuses on affordable housing loans, targeting low and middle-income segments.
- Competitive advantage lies in niche positioning, strong demand for housing finance, and government support for housing schemes.
📈 Technicals & Entry Zone
- DMA 50 (₹484) and DMA 200 (₹479) are close to current price, showing consolidation.
- RSI at 47.4 indicates neutral momentum; MACD negative suggests mild weakness.
- Entry Zone: Attractive near ₹450–470 for long-term investors.
- Long-Term Holding: Suitable for investors seeking exposure to affordable housing finance, but debt levels must be monitored.
✅ Positive
- Strong quarterly PAT growth (+22.7%).
- ROE at 16.9% reflects solid shareholder returns.
- FII holdings increased (+0.08%) and DII holdings increased (+0.20%), showing institutional confidence.
⚠️ Limitation
- High debt-to-equity ratio (2.56) increases financial risk.
- ROCE at 11.4% is moderate compared to peers.
- Dividend yield is 0.00%, offering no immediate shareholder return.
📉 Company Negative News
- MACD negative (–2.09), indicating short-term weakness in momentum.
- Stock trading below recent highs (₹548), showing resistance at upper levels.
📈 Company Positive News
- Quarterly PAT improved to 294 Cr., reflecting operational strength.
- Institutional support increased with both FII and DII holdings rising.
🏭 Industry
- Housing finance sector benefits from government initiatives and rising demand for affordable housing.
- Industry average P/E (16.4) highlights Aadhar Housing Finance’s premium valuation.
🔎 Conclusion
- Aadhar Housing Finance shows strong earnings growth and solid ROE but carries high debt risk.
- Valuations are moderately stretched compared to industry averages.
- Recommendation: Accumulate near ₹450–470 for long-term holding. Suitable for investors seeking exposure to affordable housing finance, but debt levels must be closely monitored.