Aavas Financiers Ltd. (AAVAS) AI Stock Analysis

• Market Cap: ₹132.47B
• Dividend Yield: N/A
• Average Volume (3M): 50.94K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.69
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 6,075
• Sector: Real Estate
• Sector Strength: 53
• Industry: Financial - Mortgages
• EPS (TTM): 17.60
• Shares Outstanding: 79,161,354
• 10 Day Avg. Volume: 6,865
• 30 Day Avg. Volume: 50,939
• 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: ₹1,962.83
• Price Target Upside: 17.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: ₹1,737.00 ▲(4.14% Upside)

Aavas Financiers Ltd. faces significant financial challenges with declining revenue and high leverage, impacting its overall score. Technical indicators suggest a bearish trend, while valuation is moderate. The absence of earnings call data and corporate events limits further insights.

Aavas Financiers Ltd. Business Overview & Revenue Model

Company Description

Aavas Financiers Ltd. (AAVAS) is a leading housing finance company based in India, primarily focused on providing home loans to individuals and families in the affordable housing segment. The company aims to cater to the growing demand for housing finance in semi-urban and rural areas, offering a range of products including housing loans, loan against property, and home improvement loans. AAVAS is dedicated to promoting financial inclusion and supporting the housing needs of its customers through competitive interest rates and personalized service.

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% and a gross profit margin of 100%. However, the significant revenue decline of 39.03%, high debt-to-equity ratio of 3.18, and negative cash flows indicate potential financial and 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	23.88B	24.44B	11.68B	18.49B	13.47B	11.30B
Gross Profit	12.00B	23.14B	124.81M	10.07B	8.06B	3.24B
EBITDA	6.37B	7.96B	6.63B	13.39B	9.62B	8.37B
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: 1667.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1667.95 is above the 20-day moving average (MA) of 1647.09, above the 50-day MA of 1647.09, and below the 200-day MA of 1783.71, indicating a bearish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 45.92 is Neutral, neither overbought nor oversold. The STOCH value of 71.06 is Neutral, 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	₹62.98B	39.12	―	0.35%	-8.97%	61.83%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SHRIRAMPPS	64 Neutral	₹15.89B	19.47	―	―	-1.64%	5.27%
HOMEFIRST	63 Neutral	₹125.22B	27.11	―	0.31%	33.53%	21.56%
APTUS	62 Neutral	₹157.85B	19.73	―	1.45%	28.39%	24.27%
AAVAS	59 Neutral	₹132.47B	22.48	―	―	―	―
RUSTOMJEE	58 Neutral	₹78.03B	48.51	―	0.24%	-21.81%	61.60%