⚠ 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.
AAVAS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | AAVAS | Market Cap | 8,926 Cr. | Current Price | 1,127 ₹ | High / Low | 2,238 ₹ |
| Stock P/E | 14.2 | Book Value | 591 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 1,314 ₹ | DMA 200 | 1,532 ₹ |
| Chg in FII Hold | -1.16 % | Chg in DII Hold | 0.17 % | PAT Qtr | 170 Cr. | PAT Prev Qtr | 164 Cr. |
| RSI | 25.2 | MACD | -59.3 | Volume | 5,35,523 | Avg Vol 1Wk | 3,58,959 |
| Low price | 1,096 ₹ | High price | 2,238 ₹ | PEG Ratio | 0.83 | Debt to equity | 3.08 |
| 52w Index | 2.76 % | Qtr Profit Var | 16.1 % | EPS | 79.2 ₹ | Industry PE | 14.1 |
📊 Core Financials
- Profitability: PAT rose from ₹164 Cr. to ₹170 Cr. (Qtr Profit Var: +16.1%)
- Margins: ROE at 14.1% is healthy, while ROCE at 10.1% is modest
- Debt: Debt-to-equity ratio at 3.08 indicates high leverage, typical for housing finance firms
- Cash Flow: EPS at ₹79.2 supports consistent earnings
💰 Valuation Indicators
- P/E Ratio: 14.2 vs Industry PE of 14.1 → fairly valued
- P/B Ratio: Current Price ₹1,127 vs Book Value ₹591 → ~1.9x book
- PEG Ratio: 0.83 → growth priced reasonably
- Intrinsic Value: Fair valuation with mild premium
🏢 Business Model & Health
- Market Cap: ₹8,926 Cr. reflects mid-sized presence in housing finance
- Dividend Yield: 0.00% indicates reinvestment focus
- Competitive Advantage: Strong positioning in affordable housing finance
- Overall Health: Earnings growth is visible, but leverage remains a concern
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹1,050–1,100 for accumulation
- Long-Term Holding: Suitable for long-term investors if asset quality remains stable
✅ Positive
- Quarterly PAT growth (+16.1%)
- Healthy ROE (14.1%)
- DII holding increased (+0.17%)
⚠️ Limitation
- High debt-to-equity ratio (3.08)
- ROCE (10.1%) is modest compared to peers
- No dividend yield (0.00%)
📉 Company Negative News
- FII holding decreased (-1.16%)
- Stock trading below DMA levels (50DMA ₹1,314, 200DMA ₹1,532)
📈 Company Positive News
- Quarterly PAT improved to ₹170 Cr.
- DII holding increased (+0.17%)
🏭 Industry
- Industry PE: 14.1, in line with AAVAS’s PE
- Housing finance sector benefits from government push for affordable housing
🔎 Conclusion
AAVAS shows steady earnings growth and fair valuation compared to industry peers, supported by healthy ROE.
However, high leverage and modest ROCE raise caution.
The stock is suitable for long-term investors focused on housing finance growth, with entry recommended near ₹1,050–1,100 to balance risk and reward.