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APTUS - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.8

Last Updated Time : 19 Mar 26, 07:09 pm

Fundamental Rating: 3.8

Stock Code APTUS Market Cap 10,960 Cr. Current Price 219 ₹ High / Low 365 ₹
Stock P/E 16.0 Book Value 80.5 ₹ Dividend Yield 2.05 % ROCE 14.3 %
ROE 16.0 % Face Value 2.00 ₹ DMA 50 250 ₹ DMA 200 287 ₹
Chg in FII Hold -2.17 % Chg in DII Hold 1.42 % PAT Qtr 160 Cr. PAT Prev Qtr 202 Cr.
RSI 31.6 MACD -9.81 Volume 21,32,394 Avg Vol 1Wk 19,50,227
Low price 217 ₹ High price 365 ₹ PEG Ratio 0.69 Debt to equity 1.23
52w Index 1.55 % Qtr Profit Var 12.8 % EPS 13.7 ₹ Industry PE 14.1

📊 Financials

  • Revenue & Profitability: PAT declined from ₹202 Cr. to ₹160 Cr., showing short-term weakness. EPS at ₹13.7 is modest relative to valuation.
  • Margins & Returns: ROCE at 14.3% and ROE at 16.0% are decent, reflecting moderate efficiency.
  • Debt & Liquidity: Debt-to-equity ratio of 1.23 indicates high leverage, requiring close monitoring.
  • Cash Flow: Dividend yield of 2.05% provides attractive shareholder returns.

💹 Valuation

  • P/E Ratio: 16.0 vs Industry PE of 14.1 — trading at a slight premium.
  • P/B Ratio: Current price ₹219 vs Book Value ₹80.5 — ~2.7x book value, moderately expensive.
  • PEG Ratio: 0.69 — indicates attractive valuation relative to growth.
  • Intrinsic Value: Current price is near fair value, offering limited upside but reasonable entry.

🏢 Business Model & Competitive Advantage

  • Operates in affordable housing finance, a sector with strong demand drivers.
  • High dividend yield supports shareholder value.
  • Leverage is high, which reduces flexibility compared to peers.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive accumulation range between ₹210 – ₹220, near its 52-week low.
  • Long-Term Holding: Fundamentals are average with high leverage risk. Suitable for cautious accumulation on dips for long-term exposure to housing finance growth.

✅ Positive

  • Dividend yield of 2.05% provides attractive shareholder returns.
  • ROE of 16% reflects moderate efficiency.
  • DII holdings increased by 1.42%, showing domestic institutional confidence.

⚠️ Limitation

  • High debt-to-equity ratio (1.23) increases financial risk.
  • Quarterly PAT declined, showing short-term weakness.
  • Stock trading below DMA 50 and DMA 200 indicates weak technical momentum.

📉 Company Negative News

  • FII holdings declined by 2.17%, showing reduced foreign investor confidence.
  • RSI at 31.6 and MACD negative (-9.81) reflect bearish technical signals.

📈 Company Positive News

  • Dividend yield supports shareholder value.
  • DII holdings increased, showing confidence from domestic institutions.
  • PEG ratio of 0.69 indicates attractive valuation relative to growth.

🏭 Industry

  • Housing finance sector benefits from urbanization and government support for affordable housing.
  • Industry PE at 14.1 is slightly lower than company’s valuation, highlighting premium pricing for APTUS.

🔎 Conclusion

APTUS shows moderate fundamentals with decent efficiency and attractive dividend yield, but suffers from high leverage and weak short-term profitability. While domestic institutions show confidence, foreign investors remain cautious. Best strategy: accumulate cautiously near ₹210–₹220 and hold for long-term exposure to housing finance growth, while monitoring debt levels and profitability trends.

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