APTUS - Investment Analysis

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

Investment Rating: 4.0

📊 Fundamental Analysis Summary

Aptus Value Housing Finance (APTUS) is a growing player in the affordable housing finance segment. It offers a compelling mix of reasonable valuation, strong earnings growth, and improving institutional interest. While its ROE and ROCE are solid, the high debt-to-equity ratio is typical for NBFCs but worth monitoring. The PEG ratio suggests undervaluation relative to growth, making it a promising long-term candidate.

Metric Value Interpretation

P/E Ratio 22.0 Reasonable — slightly above industry average

PEG Ratio 0.83 Attractive — undervalued relative to growth

ROE / ROCE 18.6% / 15.0% Good — efficient capital deployment for its sector

Dividend Yield 1.36% Decent — adds passive income potential

Debt-to-Equity 1.59 High — typical for NBFCs, but needs prudent management

EPS ₹15.0 Reasonable — supports valuation

PAT Growth (QoQ) +8.9% Healthy — consistent earnings momentum

Book Value ₹86.4 Price-to-book ~3.8× — fair for financial sector

RSI / MACD 44.3 / +4.54 RSI neutral; MACD positive — potential accumulation zone

DMA 50 / 200 ₹332 / ₹322 Price near averages — consolidation phase

52W Price Range ₹268 – ₹402 Currently at 47.2% of 52W high — attractive zone

FII/DII Change +2.67% / +6.16% Strong — institutional accumulation

📉 Ideal Entry Price Zone

Entry Zone: ₹310 – ₹325

Below DMA levels and RSI near 40 — good risk-reward setup.

Avoid chasing above ₹350 unless earnings growth accelerates.

🧭 Exit Strategy & Holding Period

Holding Period

5+ years — suitable for long-term compounding through financial inclusion and housing finance growth.

Exit Strategy

Exit partially if PEG rises above 1.5 or ROE drops below 15%.

Reassess if price exceeds ₹390–₹400 without matching EPS or PAT growth.

Key Metrics to Monitor

ROE consistently above 18%

PEG ratio staying below 1.0

PAT growth > 20% YoY

Debt-to-equity trending below 1.5

🧠 Final Thoughts

Aptus is a promising long-term play in the affordable housing finance space, backed by solid growth, improving institutional interest, and fair valuation. While debt levels are high, they’re typical for the sector and manageable given its profitability. Ideal for investors seeking exposure to financial inclusion themes with a disciplined entry and monitoring strategy.

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