Aavas Financiers Ltd. share price target

Aavas Financiers Ltd (AAVAS) is a fundamentally strong HFC with best-in-class asset quality, a well-capitalized balance sheet, a healthy growth trajectory and consistently delivering ROAs >3.5%. AAVAS has demonstrated an execution track record by generating strong risk-adjusted returns despite a large self-employed asset mix.

The past six months have been challenging for Aavas Financiers (Aavas) mainly due to top-management change. Despite concerns over its growth trajectory due to the apex-level change as well as IT transformation and NIM compression, the company’s performance in Q1FY24 reinforces our view that it will remain industry-leader in the AHFC space.

Aavas Financiers (Aavas), in its Analyst Day on May 24, 2023, reiterated its vision of building an organisation with robust technology platform, strong top-management team and calibrated AUM growth of 20-25% in the medium term.

Q4FY23 was a mixed quarter for Aavas Financiers (Aavas). While financial performance remained robust, resignation of Mr. Sushil Kumar Agarwal as MD raises near-term concern over management stability and AUM growth trajectory.

Aavas Financiers (Aavas) in Q3FY23 unveiled its Aavas 3.0 journey with continued aim at becoming India’s largest affordable housing finance company. As part of the 3.0 strategy, it has separated MD (Mr. Sushil Kumar Agarwal) and CEO (Mr. Sachinder Bhinder)