Why the Big Drop?
Rising interest rates are biting hard. Borrowing costs up, folks delay home buys. Housing demand slows in semi-urban spots where Aavas shines. Plus, sector blues—peers like PNB Housing slipping too. Market jitters from pledged promoter shares add fear. Stock down 25% in a year, 35% over five. Feels like panic selling.
Quick Financial Snapshot:
Market cap sits at ₹10,306 crore. P/E ratio around 16.4—below some housing finance peers at 20ish. Industry P/E? Roughly 18-20 for affordable housing players. Not screaming cheap, but decent.
ROE steady at 14.3%, solid for lenders. Debt-to-equity 3.18, high but typical for finance firms—they borrow to lend. Dividend yield? Zero right now. No payouts lately.
Cash flow negative from ops, common in growth mode: -₹1,660 Cr last year. They're funding loan books. Profit up 17% YoY to ₹574 Cr. Nice growth amid mess.
Started 2011 by Sushil Kumar Agarwal and Ghanshyam Rawat. Saw gap: rural folks ignored by big banks. Kicked off ops in 2012 with housing finance license. Jaipur-based, now nationwide. IPO in 2018 fueled growth. Rawat still CFO.
What They Do:
Simple: Affordable home loans for low-middle income in tier 2-5 cities. 90% borrowers underprivileged. Loans for buying, building, fixing homes. Quick processing, 7-10 days. Loan book ballooned to ₹14,000 Cr. Digitizing everything—sourcing to collections. Smart. Like a friendlier bank for small-town dream homes.But debt heavy, asset quality watch needed if economy sours.
Predictions vary. AI models see ₹1,919 by late 2026. Optimists eye ₹3,000 by 2026 end if rates ease. By 2030, maybe ₹1,700-2,000. 2035 around ₹1,984. 2040? Wild guess ₹2,500+ if housing booms. Doubts linger. Economy sluggish? Trap. Rates drop, government pushes PMAY housing? Bargain.
