Aavas Financiers Ltd. (IN:AAVAS)
:AAVAS
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Aavas Financiers Ltd.
(AAVAS)
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Rating:53Neutral
Price Target:
₹1,405.00
▲(4.25% Upside)
Action:ReiteratedDate:03/17/26
The score is held back primarily by weak technical momentum and a mixed financial profile (sharp revenue decline, high leverage, and negative cash flows), partially offset by strong profitability margins and a moderate P/E valuation.
Positive Factors
Profitability Margins
A 43.37% net profit margin (and stated 100% gross margin typical for financials) shows durable spread capture and operational efficiency in lending. High margins support internal capital generation, provide a buffer for credit costs, and enable reinvestment in distribution over the next 2-6 months.
Negative Factors
High Financial Leverage
Debt-to-equity of 3.18 denotes significant leverage, increasing interest expense sensitivity and refinancing risk. High leverage constrains balance sheet flexibility, raises vulnerability to rate hikes or funding stress, and limits the firm's ability to absorb shocks or pursue expansion without costly funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Margins
A 43.37% net profit margin (and stated 100% gross margin typical for financials) shows durable spread capture and operational efficiency in lending. High margins support internal capital generation, provide a buffer for credit costs, and enable reinvestment in distribution over the next 2-6 months.
Read all positive factors
Aavas Financiers Ltd. (AAVAS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹111.88B
Dividend YieldN/A
Average Volume (3M)11.55K
Price to Earnings (P/E)17.0
Beta (1Y)0.62
Revenue GrowthN/A
EPS GrowthN/A
CountryIN
Employees6,075
SectorReal Estate
Sector Strength53
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)21.50
Shares Outstanding79,282,745
10 Day Avg. Volume6,590
30 Day Avg. Volume11,550
Financial Highlights & Ratios
PEG Ratio1.71
Price to Book (P/B)3.82
Price to Sales (P/S)8.37
P/FCF Ratio29.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹1,875.00Price Target Upside39.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)96.94
Revenue Forecast (FY)₹18.23B
Aavas Financiers Ltd. Business Overview & Revenue Model
Company Description
Aavas Financiers Limited provides housing loans to customers belonging to low- and middle-income self-employed customers in semi-urban and rural areas in India. It offers home loans for flats, houses, and bungalows, as well as resale properties; l...
How the Company Makes Money
AAVAS primarily makes money through net interest income earned on its loan book. It raises funds (e.g., via bank borrowings, refinance lines, market borrowings and/or securitisation/assignment of receivables) and lends these funds to customers at ...
Aavas Financiers Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.30B | 19.88B | 16.80B | 13.56B | 11.11B | 9.36B |
| Gross Profit | 6.65B | 6.35B | 5.24B | 4.96B | 4.30B | 3.22B |
| EBITDA | 7.92B | 7.74B | 6.63B | 5.81B | 4.80B | 3.75B |
| Net Income | 6.03B | 5.74B | 4.91B | 4.30B | 3.55B | 2.89B |
Balance Sheet | ||||||
| Total Assets | 194.41B | 186.18B | 165.19B | 134.10B | 110.17B | 89.59B |
| Cash, Cash Equivalents and Short-Term Investments | 196.85B | 15.60B | 205.58M | 15.40B | 16.60B | 12.37B |
| Total Debt | 144.13B | 138.50B | 123.98B | 98.87B | 80.12B | 63.78B |
| Total Liabilities | 147.61B | 142.58B | 127.46B | 101.40B | 82.11B | 65.58B |
| Stockholders Equity | 46.80B | 43.61B | 37.73B | 32.70B | 28.06B | 24.01B |
Cash Flow | ||||||
| Free Cash Flow | -1.42B | 5.63B | 5.13B | 4.82B | 4.00B | 2.92B |
| Operating Cash Flow | -1.27B | 5.93B | 5.46B | 5.21B | 4.15B | 3.00B |
| Investing Cash Flow | -1.76B | -20.77B | -31.93B | -22.49B | -20.13B | -16.36B |
| Financing Cash Flow | 4.71B | 14.75B | 24.91B | 18.58B | 16.23B | 10.08B |
Aavas Financiers Ltd. Technical Analysis
Neutral
1347.75
Price Trends
1237.11
Positive
1367.05
Negative
1541.91
Negative
Market Momentum
22.58
Negative
69.85
Neutral
94.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AAVAS, the sentiment is Neutral. The current price of 1347.75 is above the 20-day moving average (MA) of 1169.23, above the 50-day MA of 1237.11, and below the 200-day MA of 1541.91, indicating a neutral trend. The MACD of 22.58 indicates Negative momentum. The RSI at 69.85 is Neutral, neither overbought nor oversold. The STOCH value of 94.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AAVAS.
Aavas Financiers Ltd. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹118.42B | 20.38 | ― | 0.33% | 27.31% | 22.25% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | ₹127.44B | 14.79 | ― | 1.60% | 26.86% | 25.30% | |
57 Neutral | ₹51.39B | 19.60 | ― | 0.36% | 29.46% | 35.84% | |
54 Neutral | ₹49.38B | 487.69 | ― | 0.28% | -27.23% | -35.99% | |
54 Neutral | ₹14.11B | -52.72 | ― | ― | 24.05% | 41.24% | |
53 Neutral | ₹111.88B | 17.04 | ― | ― | ― | ― |
* Real Estate Sector Average
IN:AAVAS
Aavas Financiers Ltd.
1,384.25
-607.35
-30.50%
IN:APTUS
Aptus Value Housing Finance India Limited
261.00
-62.78
-19.39%
IN:HOMEFIRST
Home First Finance Company India Ltd.
1,150.45
-121.35
-9.54%
IN:RUSTOMJEE
Keystone Realtors Ltd.
395.15
-125.81
-24.15%
IN:SHRIRAMPPS
Shriram Properties Ltd.
84.72
4.87
6.10%
IN:SUNTECK
Sunteck Realty Limited
355.45
-54.02
-13.19%
Aavas Financiers Ltd. Corporate Events
Aavas Financiers Schedules May 5 Earnings Call for FY 2026 Results
Apr 27, 2026
Aavas Financiers Ltd. has announced that it will host an earnings conference call on May 5, 2026, at 5:30 p.m. IST to discuss its financial and operational performance for the quarter and full financial year ended March 31, 2026. The call, accessi...
Aavas Financiers Announces CEO Transition with New MD Appointment
Apr 20, 2026
Aavas Financiers Ltd., a housing finance company listed on NSE and BSE, operates in India’s mortgage lending space with a focus on retail borrowers in semi-urban and rural regions under RBI regulation. Its business model centers on providing...
Aavas Financiers announces CEO transition and new managing director
Apr 20, 2026
Aavas Financiers Ltd. has announced a leadership transition, with Managing Director and Chief Executive Officer Sachinderpalsingh Jitendrasingh Bhinder resigning from his position effective at the close of business on April 20, 2026. He will conti...
Aavas Financiers names Manu Singh as new MD & CEO to lead next growth phase
Apr 20, 2026
Aavas Financiers has announced that its board has approved the appointment of Manu Yeshpal Singh as Managing Director and CEO, subject to Reserve Bank of India and shareholder approvals, effective April 21. Singh joins from Kotak Mahindra Bank, br...
ICRA assigns provisional AAA(SO) rating to Aavas Financiers’ Rs 495.61 crore home loan PTCs
Mar 21, 2026
Aavas Financiers Ltd. has disclosed that ICRA Ltd. has assigned a provisional [ICRA]AAA(SO) rating to Series A1 pass-through certificates worth Rs 495.61 crore to be issued by Prime Home Loan Trust V, a special purpose vehicle under a mortgage-bac...
Aavas Financiers Receives Independent ESG Score of 77.7 From SES ESG
Mar 18, 2026
Aavas Financiers Ltd. has received an Environmental, Social and Governance score of 77.7, categorized as Medium, from SES ESG Research Private Limited, a SEBI-registered ESG rating provider that evaluated the company using its FY 2024-25 disclosur...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.