Buy Aadhar Housing Finance; target of Rs 625: ICICI Securities

ICICI Securities research report on Aadhar Housing Finance

We hosted Aadhar Housing Finance (Aadhar) in Singapore for an investor roadshow. Takeaways: I) Housing finance market in India is broadly categorised into three segments - prime (>INR 3.5mn), mid-income (INR 1.5mn-3.5mn) and low-income affordable (<INR 1.5mn), and Aadhar is the largest HFC in low-income housing in terms of disbursements (~INR 20bn in Q1FY26), profitability (Q1FY26 PAT of INR 2.4bn) and distribution (591 branches as on Jun’25), II) dedicated urban and emerging vertical to ensure growth and spread going ahead and III) relatively lower exposure to South (~30% of total branches) and LAP (~27% as on Jun’25) to ensure better asset quality outcome in near term. Retain BUY.

Outlook

Overall, it expects 18-20% disbursement growth and 20-22% AUM growth in the near term.

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