AADHARHFC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Let’s unlock the story behind Aadhar Housing Finance Ltd. (AADHARHFC) — an emerging player in affordable housing finance with solid growth signals and a few caution flags.

🧮 Core Financials Check

Profitability

ROE: 16.9% and ROCE: 11.4% are reasonably strong, indicating sound capital efficiency.

EPS: ₹22.0 reflects decent earnings capability at current market levels.

Quarterly PAT declined slightly from ₹245 Cr to ₹237 Cr, yet Qtr Profit Var +18.6% may suggest year-on-year resilience despite quarterly fluctuations.

Debt & Liquidity

Debt-to-equity: 2.56 — typical for NBFCs but worth monitoring for asset quality and cost of funds.

Dividend Yield: 0.00% — signals reinvestment of profits for growth, not ideal for income investors.

💸 Valuation Metrics

Indicator Value Commentary

P/E Ratio 23.2 Slightly above Industry PE of 20.0 — moderately expensive

P/B Ratio ~3.44 Book Value ₹148 — fair for financials in growth phase

PEG Ratio 0.86 Indicates growth at a reasonable price

Intrinsic Value ⚠️ Slightly below CMP Fundamentals suggest cautious optimism

🏠 Business Model & Market Position

Positioned in the high-demand affordable housing segment, backed by government push and urban expansion.

Strong distribution in tier-2/3 cities boosts penetration.

Modest FII holding increase (+0.26%) supports confidence, while DII holding drop (-0.15%) suggests some domestic caution — possibly due to leverage.

📉 Technical Snapshot

RSI: 63.2 — close to overbought, short-term correction possible.

MACD: 16.7 — bullish momentum still strong.

Trading above DMA 50 (₹469) and DMA 200 (₹437) — trend supportive.

52W Range: ₹340–₹538, current price near peak — be prudent before chasing highs.

📍 Entry Zone & Holding Strategy

Entry Zone: ₹470–₹490 — offers proximity to support levels and a buffer below overbought RSI.

For long-term holders, focus on

Asset quality trends (GNPA/NNPA)

Affordable housing policy tailwinds

Sustainable loan book expansion and margin control

Interested in seeing how it stacks up against peers like Can Fin Homes or Aptus Value Housing? I can help map out a housing finance mini-portfolio that balances growth with financial discipline 🏡📊.

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