AADHARHFC - Investment Analysis

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

Investment Rating: 4.3

📊 Fundamental Analysis Summary

Here's a breakdown of the key metrics and what they suggest about AADHARHFC

Metric Value Interpretation

Market Cap ₹22,000 Cr Mid-cap, stable but still room for growth

Stock P/E 23.2 Slightly above industry average (20.0), implies moderate premium

PEG Ratio 0.86 Undervalued relative to growth; PEG < 1 is attractive

ROE / ROCE 16.9% / 11.4% ROE is strong; ROCE is modest, suggests capital efficiency could improve

Dividend Yield 0.00% No dividends—growth-focused rather than income-generating

Debt-to-Equity 2.56 High leverage; typical for housing finance but worth monitoring

EPS ₹22.0 Solid earnings base

Book Value ₹148 Price-to-book ratio ~3.4×, slightly expensive on asset basis

PAT Growth (QoQ) -3.3% Slight dip in profits; not alarming but worth tracking

RSI / MACD 63.2 / 16.7 RSI nearing overbought; MACD positive—momentum is strong

FII/DII Holding Change +0.26% / -0.15% FII interest rising, DII slightly trimming—mixed institutional sentiment

52W Price Range ₹340 – ₹538 Currently near highs; limited short-term upside

📈 Valuation & Entry Price Zone

Given the PEG ratio of 0.86 and strong ROE, the stock is fundamentally attractive. However, the current price of ₹509 is close to its 52-week high of ₹538, and RSI suggests it's approaching overbought territory.

Ideal Entry Zone: ₹440 – ₹470

This range aligns with the 50 DMA (₹469) and 200 DMA (₹437), offering a technically sound and value-conscious entry point.

A pullback to this zone would provide a better margin of safety.

🧭 If You Already Hold the Stock

Holding Strategy

Time Horizon: 3–5 years minimum, given strong ROE and PEG ratio.

Exit Strategy: Consider partial profit booking if price exceeds ₹550–₹570 without corresponding earnings growth.

Monitor: Debt levels, ROCE improvement, and quarterly PAT trends. If ROCE rises above 13–14% and debt reduces, long-term prospects improve significantly.

Key Triggers to Watch

Sustained PAT growth above ₹250 Cr per quarter

Improvement in dividend policy (even modest yield)

Reduction in debt-to-equity below 2.0

🧠 Final Thoughts

AADHARHFC shows strong profitability and growth potential, but its high leverage and current price near peak levels suggest caution in timing entry. Long-term investors can benefit from its growth trajectory, especially if ROCE improves and debt moderates.

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