Buy Aadhar Housing Finance; target of Rs 550: ICICI Direct

ICICI Direct's research report on Aadhar Housing Finance

Established in 2010, Aadhar is the largest player in affordable housing space with AUM of ₹23,975 crore. Diversification in terms of business mix, customer base and distribution remain core strength. Business mix remains well balanced and granular with home loans comprising ~75% of AUM, while LAP constitutes remaining 25%. Salaried borrowers mix comprised 56% salaried and 44% self-employed segments of AUM. As of December 31, 2024, Aadhar operates 557 branches across 21 states and union territories.

Outlook

Given its strong RoA of 4% and RoE of 18%+, while delivering credit growth of above 20%, valuations remain attractive at current level. We value Aadhar at 2.7x FY27E BV and assign a target price of ₹550. We recommend a BUY rating.

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