Check Before You Invest : Aadhar Housing Finance Ltd

Q: Which industry/sub-sector does Aadhar Housing Finance Ltd belong to?

Aadhar Housing Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.

Q: Is Aadhar Housing Finance Ltd a good quality company?

Aadhar Housing Finance Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Aadhar Housing Finance Ltd undervalued or overvalued?

Aadhar Housing Finance Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 18.95, Historic Median: -. Price to Book, Current: 2.76, Historic Median: -. Price to Sales, Current: 5.65, Historic Median: -. EV to EBITDA, Current: 12.28, Historic Median: -

Q: Is Aadhar Housing Finance Ltd a good buy now?

Aadhar Housing Finance Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Operating Income growth is 20.13% for FY-2025, which is above its 5-year CAGR of 17.77%, indicating faster growth.

Q: Return on Assets of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Return on Asset is 4.3%, which is above its 5-year historical median of 3.5%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 29.35, Historic Median: 27.31. PPOP (%), Current: 23.12, Historic Median: 26.42. RoA (%), Current: 4.3, Historic Median: 3.5

Q: Return on Equity (ROE) of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Return on Equity is 17% for FY-2025, which is above its 5-year historical median of 16%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 23.12% for FY-2025, which is below its 5-year median(26.42%), indicating decreasing margins.

Q: Net Profit Margin of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 29.35% for FY-2025, which is above its 5-year median( 27.31%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Aadhar Housing Finance Ltd return on invested capital (ROIC) is 8.46% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

Check Before You Invest : Aadhar Housing Finance Ltd

BSE: 544176 NSE: AADHARHFC ISIN: INE883F01010

| Sector: BFSI | Industry: Finance - Housing

Snapshot

Q.1 Which industry/sub-sector does Aadhar Housing Finance Ltd belong to?

Aadhar Housing Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.

Q.2 Is Aadhar Housing Finance Ltd a good quality company?

Aadhar Housing Finance Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Aadhar Housing Finance Ltd undervalued or overvalued?

Aadhar Housing Finance Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	18.95	-
Price to Book	2.76	-
Price to Sales	5.65	-
EV to EBITDA	12.28	-

Q.4 Is Aadhar Housing Finance Ltd a good buy now?

Aadhar Housing Finance Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Operating Income growth is 20.13% for FY-2025, which is above its 5-year CAGR of 17.77%, indicating faster growth.

Q.2 Return on Assets of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Return on Asset is 4.3%, which is above its 5-year historical median of 3.5%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	29.35	27.31
PPOP (%)	23.12	26.42
RoA (%)	4.3	3.5

Q.3 Return on Equity (ROE) of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Return on Equity is 17% for FY-2025, which is above its 5-year historical median of 16%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 23.12% for FY-2025, which is below its 5-year median(26.42%), indicating decreasing margins.

Q.5 Net Profit Margin of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 29.35% for FY-2025, which is above its 5-year median( 27.31%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Aadhar Housing Finance Ltd return on invested capital (ROIC) is 8.46% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Total Asset growth is 21.64% for FY-2025, which is above its 5-year CAGR of 13.43%, indicating faster growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of Aadhar Housing Finance Ltd?

Aadhar Housing Finance Ltd Capital Adequacy ratio (CAR) is 44.6% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Aadhar Housing Finance Ltd?

Q.1 Promoter shareholding and pledge status of Aadhar Housing Finance Ltd?

Promoters hold 64.90% of the Aadhar Housing Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Aadhar Housing Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Aadhar Housing Finance Ltd vs Industry Peers?

Aadhar Housing Finance Ltd AUM CAGR is 13.43%, compared to the 5-year industry median CAGR of 4.02%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Aadhar Housing Finance Ltd vs industry peers

Aadhar Housing Finance Ltd profit metrics are above the industry median level of 10.39%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	29.35	17.47
PPOP (%)	23.12	11.85
RoA (%)	4.3	1.85

Q.3 Operating efficiency of Aadhar Housing Finance Ltd vs industry peers?

Aadhar Housing Finance Ltd ROCE (10.1) is above the industry median of (8.9); while the current ROE (16) are above than the 5-year average Industry ROE (12.3). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	29.35	17.47
PPOP (%)	23.12	11.85
RoA (%)	4.3	1.85
ROCE (%)	11.5	8.9
ROE (%)	17	12.3

Valuation & price assessment

Q.1 Stock return of Aadhar Housing Finance Ltd over the last decade?

Over the last 1 years, the stock has delivered a CAGR of 10.78% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	10.8%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	18.95	-	14.87
Price to Book	2.76	-	1.28
Price to Sales	5.65	-	3.57
EV to EBITDA	12.28	-	10.71

Q.3 Valuation ratios of Aadhar Housing Finance Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 2.76 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Aadhar Housing Finance Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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