The top management of Aavas Financiers (Aavas) changed in May’23, yet, its H1FY24 and Q2FY24 financial performances have been encouraging and reinforce our view that the new management team would be able to maintain its industry-leading position in AHFC space and deliver 2.5-3% RoA and 15-20% RoE on a steady basis. Notably, disbursements grew 18% QoQ after falling >30% QoQ in Q1FY24 owing to seasonality (Q1 generally being a weak quarter) and IT transformation.