AADHARHFC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | AADHARHFC | Market Cap | 20,685 Cr. | Current Price | 475 ₹ | High / Low | 548 ₹ |
| Stock P/E | 18.6 | Book Value | 173 ₹ | Dividend Yield | 0.00 % | ROCE | 11.4 % |
| ROE | 15.9 % | Face Value | 10.0 ₹ | DMA 50 | 480 ₹ | DMA 200 | 477 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.70 % | PAT Qtr | 311 Cr. | PAT Prev Qtr | 294 Cr. |
| RSI | 45.9 | MACD | -1.78 | Volume | 2,16,008 | Avg Vol 1Wk | 3,57,584 |
| Low price | 411 ₹ | High price | 548 ₹ | PEG Ratio | 0.74 | Debt to equity | 2.49 |
| 52w Index | 46.5 % | Qtr Profit Var | 26.7 % | EPS | 25.1 ₹ | Industry PE | 15.4 |
📊 Financials: Aadhar Housing Finance (AADHARHFC) shows moderate fundamentals with ROE at 15.9% and ROCE at 11.4%, reflecting average efficiency. Debt-to-equity is high at 2.49, typical for housing finance companies. Quarterly PAT rose to ₹311 Cr. from ₹294 Cr., showing a 26.7% variance. EPS stands at ₹25.1, highlighting steady earnings growth.
💰 Valuation: The stock trades at a P/E of 18.6 compared to the industry average of 15.4, suggesting a slight premium. P/B ratio is ~2.74 (Price ₹475 / Book Value ₹173). PEG ratio of 0.74 indicates attractive growth-adjusted valuation. Intrinsic value appears close to current price, making entry moderately attractive.
🏢 Business Model: Aadhar Housing Finance focuses on affordable housing loans, catering to low- and middle-income segments. Its competitive advantage lies in strong distribution, niche positioning, and government support for housing finance. Overall health is stable, supported by earnings growth, though leverage remains high.
📈 Entry Zone: A good entry zone would be near ₹440–460, closer to its DMA levels and below current highs. Long-term holding is favorable given strong demand for affordable housing, but investors should be cautious about leverage.
Positive
- 📌 Strong quarterly PAT growth (26.7% variance)
- 📌 EPS of ₹25.1 reflects steady earnings
- 📌 Increase in DII holdings (+0.70%)
- 📌 PEG ratio of 0.74 indicates attractive valuation
Limitation
- ⚠️ High debt-to-equity ratio (2.49)
- ⚠️ P/E ratio (18.6) slightly above industry average (15.4)
- ⚠️ Dividend yield of 0.00% offers no income
- ⚠️ ROCE (11.4%) reflects modest efficiency
Company Negative News
- 📉 Decline in FII holdings (-0.06%)
Company Positive News
- 📈 Increase in DII holdings (+0.70%)
- 📈 Consistent quarterly profit growth
Industry
- 🏦 Industry PE at 15.4, lower than Aadhar Housing Finance’s valuation
- 📊 Housing finance sector benefits from government initiatives and rising demand for affordable housing
Conclusion
🔎 Aadhar Housing Finance is moderately valued with consistent earnings growth and strong positioning in affordable housing. Entry is advisable near ₹440–460. Long-term holding is favorable given industry demand, but investors should monitor leverage and efficiency closely.
Would you like me to also prepare a side-by-side comparison of Aadhar Housing Finance vs housing finance peers to highlight its relative valuation positioning?