Aavas Financiers Ltd. (AAVAS) AI Stock Analysis

• Market Cap: ₹129.89B
• Dividend Yield: N/A
• Average Volume (3M): 11.55K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.64
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 6,075
• Sector: Real Estate
• Sector Strength: 53
• Industry: Financial - Mortgages
• EPS (TTM): 20.60
• Shares Outstanding: 79,166,810
• 10 Day Avg. Volume: 6,590
• 30 Day Avg. Volume: 11,550
• PEG Ratio: 1.71
• Price to Book (P/B): 3.82
• Price to Sales (P/S): 6.81
• P/FCF Ratio: -9.85
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,997.50
• Price Target Upside: 25.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹1,765.00 ▲(10.70% Upside)

Aavas Financiers Ltd. presents a mixed financial picture with strong profitability but significant revenue decline and high leverage. Technical indicators show short-term bullish momentum, while valuation is moderate. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Profitability Margins

High net profit margins indicate effective cost management and pricing strategies, which can support long-term financial stability and growth.

Market Focus

Targeting the affordable housing market provides Aavas with a significant growth opportunity in a sector with rising demand, supporting long-term revenue potential.

Return on Equity

A solid return on equity indicates efficient use of shareholder funds to generate profits, enhancing investor confidence and potential for reinvestment.

Negative Factors

Revenue Decline

A sharp revenue decline can signal challenges in market demand or competitive pressures, potentially impacting future growth and profitability.

High Leverage

High leverage increases financial risk, especially if interest rates rise or economic conditions deteriorate, potentially straining cash flow and financial flexibility.

Negative Cash Flows

Negative cash flows can hinder the company's ability to invest in growth opportunities and meet financial obligations, posing a risk to long-term sustainability.

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; land purchase and construction loans, including finance for self-construction of residential house; and home improvement loans, which include loans for tiling or flooring, plaster, painting, etc. The company also provides home equity loans; and micro, small, and medium enterprise loans for business expansion, purchase of equipment, working capital, etc., as well as home loan balance transfer and emergency credit line guarantee scheme products. As of March 31, 2022, it operated through 314 branches covering in 13 states, including Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh, Chhattisgarh, Delhi, Punjab, Uttarakhand, Himachal Pradesh, Karnataka, and Odisha. The company was formerly known as AU Housing Finance Limited and changed its name to Aavas Financiers Limited in February 2017. Aavas Financiers Limited was incorporated in 2011 and is based in Jaipur, India.

How the Company Makes Money

Aavas Financiers Ltd. generates revenue primarily through the interest income earned on the loans it disburses to customers. The company offers a variety of loan products, which are typically structured with interest rates that reflect the risk profile of the borrower and prevailing market conditions. Key revenue streams include interest on home loans, processing fees, and ancillary services related to loan origination. Additionally, AAVAS may earn income from fees associated with loan disbursement and insurance, as well as from partnerships with financial institutions that facilitate loan distribution or securitization efforts. The company's focus on the affordable housing segment allows it to tap into a large and underserved market, contributing to its overall earnings potential.

Aavas Financiers Ltd. Financial Statement Overview

Summary

Aavas Financiers Ltd. shows strong profitability margins with a net profit margin of 43.37%. However, the significant revenue decline of 39.03% and high debt-to-equity ratio of 3.18 are concerning. Negative operating and free cash flows further highlight potential liquidity challenges.

Income Statement

Aavas Financiers Ltd. has experienced a significant revenue decline of 39.03% in the most recent year, which is concerning. However, the company maintains a strong net profit margin of 43.37%, indicating effective cost management. The gross profit margin is notably high at 100%, but this is typical for financial services due to the nature of revenue recognition. The EBIT and EBITDA margins are not available, which limits a full profitability analysis.

Balance Sheet

The company has a high debt-to-equity ratio of 3.18, indicating significant leverage, which could pose a risk if interest rates rise or if the company faces financial difficulties. Return on equity is reasonable at 13.17%, suggesting that the company is generating decent returns on shareholder investments. The equity ratio is not provided, limiting the assessment of asset financing.

Cash Flow

Aavas Financiers Ltd. shows negative operating and free cash flows, which is a concern for liquidity and operational sustainability. The free cash flow to net income ratio is slightly above 1, indicating that the company is generating cash flow in line with its net income, but the negative cash flow figures highlight potential liquidity issues. The free cash flow growth rate is not calculable due to negative values.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.54B	19.88B	16.80B	13.56B	11.11B	9.36B
Gross Profit	6.45B	6.35B	5.24B	4.96B	4.30B	3.22B
EBITDA	7.77B	7.74B	6.63B	5.81B	4.80B	3.75B
Net Income	5.87B	5.74B	4.91B	4.30B	3.55B	2.89B
Balance Sheet
Total Assets	0.00	186.18B	165.19B	134.10B	110.17B	89.59B
Cash, Cash Equivalents and Short-Term Investments	0.00	15.60B	205.58M	15.40B	16.60B	12.37B
Total Debt	0.00	138.50B	123.98B	98.87B	80.12B	63.78B
Total Liabilities	-43.61B	142.58B	127.46B	101.40B	82.11B	65.58B
Stockholders Equity	43.61B	43.61B	37.73B	32.70B	28.06B	24.01B
Cash Flow
Free Cash Flow	0.00	-16.90B	-20.19B	-19.53B	-11.51B	-10.79B
Operating Cash Flow	0.00	-16.60B	-19.87B	-19.15B	-11.35B	-10.71B
Investing Cash Flow	0.00	1.76B	-6.47B	1.86B	-4.63B	-2.65B
Financing Cash Flow	0.00	14.75B	24.91B	18.58B	16.23B	10.08B

Aavas Financiers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1594.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AAVAS, the sentiment is Negative. The current price of 1594.4 is below the 20-day moving average (MA) of 1648.09, below the 50-day MA of 1643.99, and below the 200-day MA of 1777.63, indicating a bearish trend. The MACD of -8.46 indicates Positive momentum. The RSI at 40.42 is Neutral, neither overbought nor oversold. The STOCH value of 4.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AAVAS.

Aavas Financiers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUNTECK	69 Neutral	₹62.72B	35.78	―	0.35%	-14.25%	17.95%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AAVAS	64 Neutral	₹129.89B	22.11	―	―	―	―
HOMEFIRST	62 Neutral	₹123.83B	26.81	―	0.33%	31.75%	21.70%
SHRIRAMPPS	60 Neutral	₹16.24B	20.18	―	―	13.78%	63.01%
APTUS	58 Neutral	₹147.62B	17.48	―	1.60%	28.47%	24.63%
RUSTOMJEE	53 Neutral	₹70.85B	44.04	―	0.28%	-20.38%	-36.03%

Aavas Financiers Ltd. Corporate Events

Aavas Financiers Schedules Earnings Call for Q2 and H1 2025

Aavas Financiers Ltd. has announced an upcoming Earnings Conference Call scheduled for November 11, 2025, to discuss its financial and operational performance for the quarter and half-year ending September 30, 2025. This call will provide insights into the company’s recent performance and strategic direction, potentially impacting investor perceptions and stakeholder decisions.

Aavas Financiers Receives ‘Excellent’ ESG Rating

Aavas Financiers Ltd. has been assigned an ‘Excellent’ ESG rating of 82 by CFC Finlease Private Limited, a SEBI registered ESG Rating Provider. This rating was given voluntarily without the company’s engagement, based on the financial year 2024-25 disclosures and publicly available data, highlighting the company’s strong commitment to environmental, social, and governance standards.

Aavas Financiers Announces Virtual AGM and E-Voting Details

Aavas Financiers Limited has announced its 15th Annual General Meeting (AGM) scheduled for September 16, 2025, to be conducted via video conferencing. The company has provided details on e-voting procedures for shareholders, ensuring compliance with relevant regulations. This move reflects Aavas Financiers’ commitment to maintaining transparency and accessibility for its stakeholders, potentially strengthening its position in the financial services sector.

Aavas Financiers Announces New Employee Stock Option Plan and Upcoming AGM

Aavas Financiers Limited announced the approval of the ‘Aavas Financiers Limited-Equity Stock Option Plan for Employees-2025’, which will allow the creation and allotment of options for up to 23,74,191 equity shares, pending shareholder approval. Additionally, the company has scheduled its 15th Annual General Meeting for September 16, 2025, to be conducted via video conferencing, with relevant documents to be distributed electronically to registered shareholders.