Aavas Financiers Ltd. (AAVAS) AI Stock Analysis

• Market Cap: ₹114.72B
• Dividend Yield: N/A
• Average Volume (3M): 11.55K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.66
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 6,075
• Sector: Real Estate
• Sector Strength: 53
• Industry: Financial - Mortgages
• EPS (TTM): 20.65
• Shares Outstanding: 79,179,510
• 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: ₹2,130.00
• Price Target Upside: 47.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹1,765.00 ▲(21.82% 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 generates revenue primarily through the interest income from the loans it disburses to customers. The company earns interest on home loans, which are typically offered at competitive rates, contributing to a substantial portion of its revenue. Additionally, AAVAS may charge processing fees, prepayment charges, and other ancillary fees associated with its loan products. The company also benefits from partnerships with various financial institutions and government schemes aimed at promoting affordable housing, which can enhance its loan offerings and broaden its customer base. Furthermore, AAVAS's focus on the underserved market allows it to tap into a significant growth potential, driving its overall profitability.

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: 1448.80
• 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 1448.8 is below the 20-day moving average (MA) of 1475.46, below the 50-day MA of 1552.79, and below the 200-day MA of 1740.20, indicating a bearish trend. The MACD of -26.48 indicates Negative momentum. The RSI at 39.08 is Neutral, neither overbought nor oversold. The STOCH value of 47.72 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	₹61.72B	35.20	―	0.36%	-14.25%	17.95%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AAVAS	64 Neutral	₹114.72B	19.01	―	―	―	―
SHRIRAMPPS	60 Neutral	₹13.98B	15.53	―	―	13.78%	63.01%
HOMEFIRST	59 Neutral	₹106.70B	21.84	―	0.33%	31.75%	21.70%
APTUS	58 Neutral	₹137.85B	16.32	―	1.60%	28.47%	24.63%
RUSTOMJEE	53 Neutral	₹64.36B	62.43	―	0.28%	-20.38%	-36.03%

Aavas Financiers Ltd. Corporate Events

Aavas Financiers to Hold Investor and Analyst Group Meeting in Mumbai on December 23

Aavas Financiers Ltd. has scheduled a physical group meeting with investors and analysts in Mumbai on December 23, 2025, from 3:00 p.m. to 4:00 p.m. IST, as part of its ongoing investor relations and regulatory disclosure obligations. The company stated that discussions will be limited to information already in the public domain, with no unpublished price-sensitive information to be shared, and pointed investors to an existing investor presentation on its website, while noting that the schedule may be altered in case of unforeseen exigencies.

Aavas Financiers Expands Share Capital with New Equity Allotment

Aavas Financiers Ltd. has announced the allotment of 12,699 equity shares under its Performance Stock Option Plan – 2023, following approval by the Nomination and Remuneration Committee. This allotment has resulted in an increase in the company’s paid-up share capital, reflecting a strategic move to enhance shareholder value and potentially strengthen its market position.

Aavas Financiers Releases Earnings Call Recording for Q2 2025

Aavas Financiers Ltd. has released the audio recording of its earnings conference call for the quarter and half-year ending September 30, 2025. This conference call, held on November 11, 2025, provided insights into the company’s financial and operational performance, reflecting its ongoing commitment to transparency and stakeholder engagement.

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.