APTUS - Fundamental Analysis

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

Fundamental Rating: 3.7

Let’s assess Aptus Value Housing Finance India Ltd. (APTUS) — a niche lender focused on underserved semi-urban segments with robust earnings growth, healthy margins, and promising long-term potential, though trading near fair value and operating with elevated leverage.

💼 Core Financial Snapshot

Profitability

EPS: ₹15.0, ROE: 18.6%, ROCE: 15.0% — decent returns, especially for a housing finance company targeting small-ticket loans.

Qtr PAT Growth: +26.2% — solid momentum, indicating expanding loan book and efficiency gains.

Leverage & Liquidity

Debt-to-Equity: 1.59 — high but expected for the sector; requires careful monitoring as rates fluctuate.

Dividend Yield: 1.36% — attractive and signals stable cash flows.

📊 Valuation Matrix

Metric Value Commentary

P/E Ratio 22.0 Slight premium to Industry PE: 20.0, but supported by growth

P/B Ratio ~3.83 Reasonable vs Book Value ₹86.4

PEG Ratio 0.83 ✅ Implies current price is aligned with growth expectations

Intrinsic Value ❌ Slightly below CMP Suggests moderate room for upside if earnings remain strong

🧠 Business Model & Edge

Specializes in affordable housing finance for lower-income households with minimal formal credit history.

Strength lies in geographic focus (Tier 2/3 cities) and a low-cost digital underwriting model.

Asset-light with strong collections infrastructure and credit discipline.

FII Hold ↑ 2.67%, DII Hold ↑ 6.16% — robust institutional support, signaling confidence in future growth.

📉 Technical Signals

RSI: 44.3 — slightly oversold; potential bounce on positive news or results.

MACD: +4.54 — bullish crossover, early signs of price recovery.

CMP ₹331 is hovering around DMA 50 & 200, signaling consolidation phase.

Currently ~18% off 52W high ₹402, indicating scope for rerating with steady fundamentals.

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹310–₹325 — ideal for accumulation before next growth leg.

Long-Term Holding Outlook

Strong play on financial inclusion and housing demand in underserved areas.

Tailwinds from government push on affordable housing and formal credit penetration.

Watch for credit cost trends, asset quality metrics (GNPA/NNPA), and growth in AUM.

Suitable for long-term investors aiming at consistent compounding, with moderate volatility exposure.

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