Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Accumulate AAVAS Financiers; target of Rs 2300: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on AAVAS Financiers with a target price of Rs 2300 in its research report dated May 08, 2022.

May 12, 2022 / 01:18 PM IST
  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on AAVAS Financiers

Aavas Financiers (Aavas) saw a good quarter with PAT beat at Rs1.16bn (PLe Rs.0.99bn) mainly led by better NII and asset quality. Due to SARFAESI initiation stage-3 materially reduced QoQ. AuM growth at 20% YoY was in-line and the management suggested that AuM could grow by 20-25% consistently as penetration beyond the top-60 cities is low however asset quality would be preferred over faster growth. The company also intends to arrest the repayment rate by 2-3% with technology support which would protect AuM from run down. Opex intensity may soften and cost to income is targeted to reduce by 2.0-2.5% over the medium term. While Aavas has delivered strong earnings growth with a focus on asset quality valuation at 4.8x FY24E ABV is steep.


We lower multiple from 7.5x to 5.0x FY24 ABV and revise TP to Rs2300. Change rating from BUY to ACCUMULATE. Risks: higher slippages

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: May 12, 2022 12:57 pm
ISO 27001 - BSI Assurance Mark