AADHARHFC - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

Here’s a detailed breakdown of Aadhar Housing Finance Ltd (AADHARHFC)

🧾 Core Financials

Profitability & Growth

Quarterly PAT dipped slightly from ₹245 Cr to ₹237 Cr, but YoY growth remains healthy with an 18.6% profit variation.

EPS: ₹22.0 — solid earnings per share for a housing finance company.

ROE: 16.9% and ROCE: 11.4% — strong return metrics, especially for a lending business.

Debt & Liquidity

Debt-to-equity: 2.56 — typical for NBFCs, manageable given the asset-backed nature of housing loans.

Dividend Yield: 0.00% — reinvestment-focused, common for growth-stage financials.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 24.7 19.9 Slight premium

P/B Ratio ~3.65 ~2.5 Fairly valued

PEG Ratio 0.91 ~1 Reasonably priced for growth

Intrinsic Value ~₹480–₹510 — Slightly overvalued

Valuation is moderately stretched, but PEG < 1 suggests growth is still undervalued.

🏢 Business Model & Competitive Edge

Core Operations: Affordable housing finance, primarily targeting low- and middle-income borrowers.

Strengths

Deep rural and semi-urban penetration.

Strong underwriting and asset quality controls.

Rising FII interest (+0.26%) signals institutional confidence.

Risks

High leverage and interest rate sensitivity.

DII outflows (-0.15%) may reflect cautious domestic sentiment.

📉 Technical & Entry Zone

Current Price: ₹541

DMA 50/200: ₹502 / ₹459 — trading above key averages.

RSI: 66.0 — approaching overbought.

MACD: 8.09 — bullish momentum.

Suggested Entry Zone: ₹480–₹510 range, ideally near DMA 200 or ₹500 support.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to affordable housing growth.

Wait for dips before fresh entry due to technical overextension.

Ideal for long-term only if

Loan book continues to grow >15% CAGR.

Asset quality remains stable and ROE sustains above 15%.

Would you like a peer comparison with LIC Housing Finance or Home First Finance, or a breakdown of Aadhar’s rural lending strategy?

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