Aavas Financiers Ltd. (AAVAS) AI Stock Analysis

• Market Cap: ₹128.30B
• Dividend Yield: N/A
• Average Volume (3M): 11.55K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.67
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 6,075
• Sector: Real Estate
• Sector Strength: 53
• Industry: Financial - Mortgages
• EPS (TTM): N/A
• Shares Outstanding: 79,161,354
• 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: ₹2,008.00
• Price Target Upside: 19.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: ₹1,761.00 ▲(4.81% Upside)

Aavas Financiers Ltd. scores 61, driven primarily by its strong profitability margins despite a significant revenue decline and high leverage. Technical indicators suggest neutral to slightly bullish trends, while valuation metrics indicate moderate pricing. The absence of earnings call data and corporate events limits further insights.

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% 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: Positive
• Last Price: 1680.25
• 50DMA: Positive
• 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 Positive. The current price of 1680.25 is above the 20-day moving average (MA) of 1641.94, above the 50-day MA of 1627.25, and below the 200-day MA of 1780.75, indicating a neutral trend. The MACD of 7.06 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 60.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	―	₹66.56B	37.17	―	0.33%	-14.25%	17.95%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
APTUS	―	₹155.08B	19.38	―	1.44%	28.39%	24.27%
HOMEFIRST	―	₹125.66B	27.21	―	0.30%	33.53%	21.56%
AAVAS	―	₹128.30B	21.84	―	―	―	―
SHRIRAMPPS	―	₹15.25B	18.94	―	―	-1.64%	5.27%
RUSTOMJEE	―	₹72.52B	45.09	―	0.26%	-21.81%	61.60%

Aavas Financiers Ltd. Corporate Events

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.