Aadhar Housing Finance Ltd. share price target

Q2FY26 performance: Aadhar Housing Finance delivered strong Q2FY26 results, with AUM rising to ~27,553 crore, up 21% YoY. Non-housing loans grew faster, forming 27% of AUM. Disbursements stood at 2110 crore, a growth of 3.6% YoY. PAT rose 17% YoY (up 12% QoQ) to 266 crore, supported by 16% YoY growth in NII at 557 crore. Credit cost remained contained at 13.2 crore, reflecting disciplined underwriting. The company reported GNPA at 1.47% and NNPA steady...

Aadhar Housing Finance’s (Aadhar) credit discipline, robust risk management and geographically diversified AUM (no state has <15% of AUM) helped it in delivering one of the best asset quality performances in ]Q2FY26 despite challenges.

We hosted Aadhar Housing Finance (Aadhar) in Singapore for an investor roadshow.

Aadhar Housing Finance (Aadhar) has successfully sustained >20% YoY (4% QoQ) AUM growth as disbursements grew 32% YoY in Q1FY26.

Aadhar Housing Finance (Aadhar), with 21% YoY/5% QoQ AUM growth in Q3FY25, continued to reinforce the view that credit demand in low-income housing is robust and the AHFC space would likely sustain its growth momentum.

It delivered 18% AUM CAGR between FY18–24 with AUM of INR 228bn, as of Sep’24, driven by an early entry into under-penetrated markets of UP, MP, Chhattisgarh and Jharkhand etc., complemented by its focus on diversification (no single state is contributing >15% of AUM) and one of the highest branch networks of 545; these have been key enablers for Aadhar.

Aadhar Housing Finance (Aadhar) has carved a niche for itself in affordable housing finance, pioneering the space as a category creator, armed with its distinct business-scaling strategy.

Issue Snapshot: Issue Open: May 08 May 10, 2024 Price Band: Rs. 300 315 (Discount of Rs 23 per share for all eligible employee) *Issue Size: Up to Rs. 3000.0 cr (Fresh issue of Rs.1000 cr + Offer for sale of Rs 2000.0 cr including employee reservation aggregating upto Rs.7.0 cr) Reservation for: QIB upto 50% eq sh Non-Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 10 Book value: Rs 107.6 (December 31, 2023) Bid size: - 47 equity shares and in multiples thereof 100% Book built Issue IPO Note-Aadhar Housing Finance Limited

IPO NOTE