APTUS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:14 pm

Fundamental Rating: 4.0

📊 Core Financials:

- Profitability: PAT improved from 155 Cr. to 202 Cr. (+47.6% QoQ), showing strong earnings growth.

- Margins: ROCE at 14.3% and ROE at 16.0% reflect healthy efficiency and profitability.

- Debt: Debt-to-equity at 1.23 → relatively high leverage, requires monitoring.

- EPS: 13.4 ₹, steady earnings supporting valuation.

💹 Valuation Indicators:

- P/E: 21.2 vs Industry PE of 18.0 → slightly overvalued compared to peers.

- P/B: 284 ₹ / 80.5 ₹ ≈ 3.53, trading at a premium.

- PEG Ratio: 0.92 → attractive, suggesting fair valuation relative to growth.

- Intrinsic Value: Estimated fair value ~270–280 ₹, suggesting current price is close to fair value.

🏢 Business Model & Competitive Advantage:

Aptus Value Housing Finance operates in affordable housing finance, focusing on underserved markets. Competitive advantage lies in niche positioning, strong growth in loan book, and rising institutional support. However, high leverage and valuation premiums limit near-term attractiveness.

📈 Entry Zone & Long-Term Guidance:

- Entry Zone: Attractive accumulation range between 270–280 ₹.

- Long-Term Holding: Strong fundamentals, sector demand, and institutional support make Aptus suitable for long-term investors, though debt levels warrant caution.

Positive

• Quarterly PAT growth (+47.6%) shows strong operational performance.
• ROE (16.0%) and ROCE (14.3%) reflect healthy efficiency.
• Dividend yield of 1.60% provides shareholder returns.
• Strong institutional support: FII (+4.95%) and DII (+9.83%) holdings increased significantly.

Limitation

• Debt-to-equity at 1.23 indicates high leverage risk.
• P/E ratio (21.2) above industry average (18.0), suggesting premium valuation.
• P/B ratio of 3.53 reflects premium valuation.
• Technical weakness: trading below DMA 50 (295 ₹) and DMA 200 (313 ₹).

Company Negative News

• High leverage with debt-to-equity at 1.23.
• MACD (-1.86) indicates bearish technical sentiment.
• Trading below key moving averages shows weak momentum.

Company Positive News

• Strong quarterly PAT growth highlights improving performance.
• FII and DII holdings increased significantly, showing institutional confidence.
• Dividend yield supports shareholder returns.

Industry

• Affordable housing finance sector supported by government initiatives and rising demand.
• Industry PE at 18.0 indicates moderate valuation compared to Aptus’ premium.
• Sector growth expected with increasing urbanization and housing demand in underserved markets.

Conclusion

⚖️ Aptus Value Housing Finance demonstrates strong fundamentals with robust profit growth, healthy ROE/ROCE, and strong institutional support. While debt levels and premium valuations warrant caution, sector tailwinds make it attractive for long-term investors. Accumulation near 270–280 ₹ is recommended for value-conscious entry, with potential for steady compounding returns in the housing finance sector.