Aptus Value Housing Finance India Ltd. share price target

We maintain our BUY recommendation on the stock.

Aptus Value Housing Finance India Ltd delivered a strong FY26 performance, with AUM growing ~21% YoY to Rs13,107 crore, supported by improving disbursement momentum and calibrated portfolio expansion. Management strategically discontinued sanctions below Rs7 lakh to improve borrower quality and reduce exposure to microfinance-type customers, leading to better bureau profiles and lower bounce rates. Despite near-term moderation in incremental yields due to competitive pricing, profitability remained robust with PAT rising ~26% YoY to Rs943 crore, RoA at ~8.2% and Q4 RoE at ~21%. Spreads improved...

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

Aptus’ favourable AUM mix (only AHFC with a separate NBFC) with a high-yielding (~18–20%) non-HL portfolio – constitutes ~40% – alongside steady ~30% AUM growth during the past 8–12 quarters and tight control on asset quality has helped it become the first AHFC (under our coverage) to deliver >20% RoE in Q1FY26.

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

Improving trajectory in Aptus Value Housing Finance’s (Aptus) financial performance sustained in Q1FY25, evident in RoE expanding to 18.1%, from 16.9% in Q1FY24.

We maintain our BUY recommendation on the stock.

Recommendation: We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

The highlight of Aptus Value Housing Finance’s (Aptus) Q2FY24 result is its strong credit growth of 11% QoQ, surpassing the sequential growth range of 6-8% during the past 12 quarters and sustaining industry-leading profitability as reflected in >8% RoA and 17% RoE.

Company Outlook: We remain confident in Aptus' ability to deliver consistently strong growth with a focus on strengthening leadership positions in existing core geographies and gradual ramp-up in business in the new geographies and to deliver best-in-class RoA/RoE over the medium term.

RoE expansion journey continued for Aptus Value Housing Finance (Aptus), as reflected in it improving to 16.9% in Q1FY24 (one of the highest within AHFC space) vs 16.3% in Q4FY23 and 15.9% in Q1FY23, driven by steady AUM growth (up 6% QoQ). It reported PAT of INR 1.4bn (up 20% YoY / 5% QoQ) driven by a sharp decline in credit cost to 14bps vs 48bps QoQ and 8% QoQ reduction in staff cost.

We recommend a BUY rating on the stock with a TP of Rs 303, implying an upside of 10% from CMP.

We met Aptus Value Housing Finance’s (Aptus) newly appointed MD Mr. P Balaji and Sales, IT and collection head to get a sense of the underlying business trend in AHFC space and how Aptus is placed to sustain ~30% AUM growth in medium term.

In Q4FY23, Aptus Value Housing Finance (Aptus) announced top management restructuring with – i) appointment of Mr. M Anandan as the Executive Chairman (Chairman & MD earlier), ii) appointment of Mr. P Balaji as the Managing Director (ED & CFO) and iii) appointment of Mr. John Vijayan Rayappa as the Chief Financial Officer (CRO earlier).