⚠ 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: 3.4
| Stock Code | AAVAS | Market Cap | 11,379 Cr. | Current Price | 1,437 ₹ | High / Low | 2,238 ₹ |
| Stock P/E | 18.9 | Book Value | 591 ₹ | Dividend Yield | 0.00 % | ROCE | 10.1 % |
| ROE | 14.1 % | Face Value | 10.0 ₹ | DMA 50 | 1,495 ₹ | DMA 200 | 1,630 ₹ |
| Chg in FII Hold | -1.16 % | Chg in DII Hold | 0.17 % | PAT Qtr | 164 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 45.8 | MACD | -8.60 | Volume | 99,154 | Avg Vol 1Wk | 99,323 |
| Low price | 1,351 ₹ | High price | 2,238 ₹ | PEG Ratio | 1.10 | Debt to equity | 3.08 |
| 52w Index | 9.67 % | Qtr Profit Var | 10.8 % | EPS | 76.2 ₹ | Industry PE | 16.4 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 139 Cr. to 164 Cr. (+10.8% variance), showing steady growth momentum.
- Margins: ROE at 14.1% is decent, while ROCE at 10.1% is moderate compared to peers.
- Debt: Debt-to-equity ratio of 3.08 indicates high leverage, which adds financial risk.
- Cash Flow: Profitability supports cash generation, but debt levels may pressure liquidity.
💹 Valuation Indicators
- P/E Ratio: 18.9 vs. industry average of 16.4 — slightly expensive.
- P/B Ratio: Current price (₹1,437) vs. book value (₹591) → ~2.4x, moderately valued.
- PEG Ratio: 1.10, suggesting growth is fairly priced.
- Intrinsic Value: Valuation is reasonable, supported by earnings growth but debt remains a concern.
🏢 Business Model & Competitive Advantage
- Aavas Financiers focuses on affordable housing finance, targeting semi-urban and rural markets.
- Competitive advantage lies in niche positioning, strong demand for housing loans, and government support for housing schemes.
📈 Technicals & Entry Zone
- DMA 50 (₹1,495) and DMA 200 (₹1,630) are above current price, showing weakness.
- RSI at 45.8 indicates neutral momentum; MACD negative suggests mild bearishness.
- Entry Zone: Attractive near ₹1,350–1,400 for long-term investors.
- Long-Term Holding: Suitable for patient investors; strong growth potential but debt levels must be monitored.
✅ Positive
- Consistent quarterly PAT growth (+10.8%).
- ROE at 14.1% reflects decent shareholder returns.
- DII holdings increased (+0.17%), showing domestic institutional support.
⚠️ Limitation
- High debt-to-equity ratio (3.08) increases financial risk.
- ROCE at 10.1% is moderate compared to peers.
- Dividend yield is 0.00%, offering no immediate shareholder return.
📉 Company Negative News
- FII holdings decreased (–1.16%), showing reduced foreign investor confidence.
- Stock trading below DMA 50 and DMA 200, indicating technical weakness.
📈 Company Positive News
- Quarterly PAT improved to 164 Cr., reflecting operational strength.
- DII holdings increased (+0.17%), showing domestic support.
🏭 Industry
- Housing finance sector benefits from government initiatives and rising demand for affordable housing.
- Industry average P/E (16.4) highlights Aavas Financiers’ slightly premium valuation.
🔎 Conclusion
- Aavas Financiers shows steady earnings growth and decent ROE but carries high debt risk.
- Valuations are moderately stretched compared to industry averages.
- Recommendation: Accumulate near ₹1,350–1,400 for long-term holding. Suitable for investors seeking exposure to affordable housing finance, but debt levels must be closely monitored.