APTUS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | APTUS | Market Cap | 13,026 Cr. | Current Price | 260 ₹ | High / Low | 365 ₹ |
| Stock P/E | 19.0 | Book Value | 80.5 ₹ | Dividend Yield | 1.73 % | ROCE | 14.3 % |
| ROE | 16.0 % | Face Value | 2.00 ₹ | DMA 50 | 240 ₹ | DMA 200 | 273 ₹ |
| Chg in FII Hold | -2.85 % | Chg in DII Hold | 2.14 % | PAT Qtr | 160 Cr. | PAT Prev Qtr | 202 Cr. |
| RSI | 66.3 | MACD | 10.9 | Volume | 6,47,044 | Avg Vol 1Wk | 12,59,742 |
| Low price | 193 ₹ | High price | 365 ₹ | PEG Ratio | 0.82 | Debt to equity | 1.23 |
| 52w Index | 39.1 % | Qtr Profit Var | 12.8 % | EPS | 13.7 ₹ | Industry PE | 15.1 |
📊 Financials: APTUS shows moderate fundamentals with ROE at 16.0% and ROCE at 14.3%, reflecting fair efficiency. Debt-to-equity ratio of 1.23 highlights high leverage, which adds financial risk. EPS of ₹13.7 supports earnings visibility, though quarterly PAT declined from ₹202 Cr. to ₹160 Cr. (-20.8%).
💹 Valuation: Current P/E of 19.0 is slightly above industry average (15.1), suggesting mild overvaluation. PEG ratio of 0.82 indicates valuations are aligned with growth. P/B ratio (~3.2) is moderately high compared to book value ₹80.5, limiting intrinsic value comfort.
🏢 Business Model: APTUS operates in housing finance, benefiting from long-term demand in affordable housing. Competitive advantage lies in niche focus and institutional support. However, declining profits and high leverage reduce margin of safety.
📈 Entry Zone: Ideal entry closer to ₹240–255, near DMA 50 (₹240) and below current price ₹260. This range offers better valuation comfort and aligns with technical support.
📌 Long-Term Holding: Suitable for medium-term investors (2–3 years). Dividend yield of 1.73% supports shareholder returns, but long-term holding beyond 3 years should be reconsidered unless leverage reduces and profitability improves.
Positive
- ROE (16.0%) and ROCE (14.3%) show moderate efficiency
- Dividend yield of 1.73% provides shareholder value
- PEG ratio (0.82) suggests valuations aligned with growth
- DII holdings increased (+2.14%), signaling domestic confidence
Limitation
- High debt-to-equity ratio (1.23)
- P/E (19.0) slightly above industry average (15.1)
- Quarterly PAT decline (₹160 Cr. vs ₹202 Cr.)
- FII holdings decreased (-2.85%), showing reduced foreign interest
Company Negative News
- Quarterly profit decline raises caution on earnings stability
Company Positive News
- Dividend yield supports shareholder returns
- DII confidence increased significantly (+2.14%)
Industry
- Industry P/E at 15.1 reflects moderate sector valuation
- Housing finance sector benefits from long-term demand but faces interest rate risks
Conclusion
APTUS is moderately attractive with fair valuation, dividend support, and institutional confidence, but high leverage and profit decline limit long-term appeal. Entry is recommended around ₹240–255 for margin of safety. For existing holders, a medium-term horizon (2–3 years) with partial exits near ₹340–360 resistance is advisable. Long-term holding should be reconsidered unless profitability metrics improve and debt levels reduce.