Aadhar Housing Finance Ltd. share price target

Aadhar Housing Finance (Aadhar) exhibited robust franchise resilience in FY26, disproving scepticism around its ability to maintain scale and profitability amidst sector headwinds.

Aadhaar Housing Finance delivered a strong FY26 performance, crossing 30,000 crore AUM, reflecting a healthy growth trajectory with management guiding for ~20% AUM and PAT growth and 1718% disbursement growth ahead. Profitability remains robust, supported by stable spreads and calibrated mix, while GNPA stands low at ~1.08%, highlighting pristine asset quality. The company continues to benefit from a granular, secured retail portfolio and improving operating efficiency, with cost-to-income expected to decline further (~50 bps guidance). Strategic shift toward emerging markets and self-employed...

About the stock: Established in 2010, Aadhar is the largest player in affordable housing space with AUM of 30,866 crore. Diversification in terms of business mix, Business mix remains well balanced and granular with home loans comprising ~73% of AUM, while LAP constitutes remaining 27%. Salaried...

Q3FY26 performance: Aadhar Housing Finance continued to deliver healthy performance, with AUM rising to ~28,790 crore, up 20% YoY. Disbursements stood at 2380 crore, a growth of 13.7% YoY. PAT rose 17.5% YoY (up 5.6% QoQ) to 281 crore, despite one-time impact of 16 crore incurred on account of new labour code. NII grew 19.2% YoY to 485 crore. Credit cost came marginally higher at 28 bps compared to guidance of ~25-26 bps. The company reported GNPA at 1.38% and...

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