Aavas Financiers Ltd - Stock Valuation and Financial Performance

BSE: 541988 | NSE: AAVAS | Finance - Housing | Small Cap

Aavas Financiers Share Price

1,593.15 13.55 0.86%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on Aavas Financiers

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Aavas Financiers stock performance -

mw4me loader
P/E Ratio (SA):
26.33
Market Cap:
12,500.9 Cr.
52-wk low:
1,307.1
52-wk high:
1,831.9

Is Aavas Financiers Ltd an attractive stock to invest in?

1. Is Aavas Financiers Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Aavas Financiers Ltd is a good quality company.

2. Is Aavas Financiers Ltd undervalued or overvalued?

The key valuation ratios of Aavas Financiers Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Aavas Financiers Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Aavas Financiers Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Aavas Financiers:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Aavas Financiers Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Operating Income (₹ Cr.)54.31041913054947109021,1031,3041,6081,921
YoY Gr. Rt. %-90.9%84.1%59.9%61.8%43.9%27.1%22.3%18.2%23.3%-
Adj EPS (₹ ) 2.15.17.59.813.522.531.836.945.254.460
YoY Gr. Rt. %-139.6%47.4%31.1%37.1%67.3%41.3%15.9%22.6%20.4%-
BVPS (₹ )18.52746.697.4167.2234.2266.4303.6351.9408458.7
YoY Gr. Rt. %-46%72.3%109%71.8%40.1%13.7%14%15.9%16%-
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%)2.132.62.82.93.63.83.53.63.50

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Net Interest Income45.7%26.7%21.3%23.3%
Adj EPS43.4%32.2%19.6%20.4%
BVPS41%19.5%15.3%16%
Share Price - 6.4% -9.8% -8.7%

Key Financial Ratios

RATIOS \ YEARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Asset Quality Ratio To view Asset Quality Ratio Colour Rating Guide click here
Net NPA to Net Advances (%)0000000000-
Capitalization Ratio To view Capitalization Ratio Colour Rating Guide click here
Capital Adequacy Ratio (%) 0000000000-
Margins
Net Profit Margin (%)11.718.417.218.718.924.827.626.227.426.724.7
Performance Ratios To view Performance Ratios Colour Rating Guide click here
Return on Equity (%)1524.321.514.810.811.812.71313.814.313.1

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 13.80%

Total Income has increased 21.25 CAGR in last 3 years

Net Profit has increased 19.59 CAGR in last 3 years

Total income growth is good in last 4 quarters

No data to display

Latest Financials - Aavas Financiers Ltd.

Standalone Consolidated
TTM EPS (₹) 60 60
TTM Sales (₹ Cr.) 1,921 1,922
BVPS (₹.) 458.7 458.7
Reserves (₹ Cr.) 3,551 3,551
P/BV 3.44 3.44
PE 26.33 26.32
From the Market
52 Week Low / High (₹) 1307.10 / 1831.85
All Time Low / High (₹) 611.50 / 3336.95
Market Cap (₹ Cr.) 12,501
Equity (₹ Cr.) 79.1
Face Value (₹) 10
Industry PE 9.5

Management X-Ray of Aavas Financiers:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Aavas Financiers

Adj EPS (Rs.)

Total Income (Cr.)

ROE (%)

BVPS (Rs.)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Income551061953134947119031,1051,3061,610
Interest Income541041913054947109021,1031,3041,608
Other Income 1248111212
Expenditure 46771452263604536017528511,061
Interest Expense 305194140194256357460479593
Operating Expenses 14214470163186225251343448
Provisions 2481641119422920
Exceptional Items 0000000000
Profit Before Tax 9295088134258302353455549
Taxes 31017304182536498119
Profit After Tax 619335793176249289357430
Adjusted EPS (₹)1.95.17.59.813.522.531.836.945.254.4
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Equity Capital551012045661,1901,8372,0982,4012,8083,270
Share Capital 30333858697878797979
Reserves 25691655081,1201,7592,0202,3232,7293,191
Minority Interest0000000000
Long Term Borrowings2605331,2171,5302,2082,6254,2754,4405,7627,244
Current Liabilities 1032172903556421,1651,2842,1192,4502,897
Trade Payables00009917349
Short term borrowings4488113795441,0761,1181,9622,2792,689
Other Liabilities-44-88-113-79-553-1,085-1,136-1,965-2,283-2,697
Total Liabilities 4188521,7112,4514,0405,6277,6578,96011,02013,411

Assets

Non Current Asset 3907951,4082,0713,3584,7586,2497,5909,19311,703
Loan Asset 3857901,4022,0593,3334,7246,1817,5239,05311,476
Other Non Current Asset 6661224336866140227
Current Asset 28573033796828691,4081,3701,8271,708
Current Investment0000000000
Other Current Asset28573033796828691,4081,3701,8271,708
Total Assets 4188521,7112,4514,0405,6277,6578,96011,02013,411

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity -223-370-591-591-933-1,276-1,172-1,071-1,136-1,910
Cash Flow From Investing Activity 1-2-1-15-218-327-342-265-467186
Cash Flow From Financing Activity 2243798166401,2401,4041,7051,0081,6231,858
Net Cash Flow 282243490-199191-32820134
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Operational & Financial Ratios

EPS (₹)26910132332374554
DPS (₹)0000000000
BVPS (₹)19315397167234266304352408

Performance Ratios

ROA (%)2.13.02.62.82.93.63.83.53.63.5
ROE (%)15.024.321.514.810.811.812.713.013.814.3
ROCE (%)13.413.211.711.410.410.910.210.09.69.6

Valuation Parameters

Price/Book(x)0.00.00.00.00.05.04.58.07.33.9

Aavas Financiers Ltd Stock News

Aavas Financiers Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Aavas Financiers on 12-Apr-2024 10:20 is ₹1,593.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 10:20 the market cap of Aavas Financiers stood at ₹12,500.9.
The latest P/E ratio of Aavas Financiers as of 12-Apr-2024 10:20 is 26.33.
The latest P/B ratio of Aavas Financiers as of 12-Apr-2024 10:20 is 3.44.
The 52-week high of Aavas Financiers is ₹1,831.9 and the 52-week low is ₹1,307.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Aavas Financiers is ₹1,921 ( Cr.) .

About Aavas Financiers Ltd

The company was incorporated as ‘Au Housing Finance Private Limited’ on February 23, 2011, as a private limited company under the Companies Act 1956, with a certificate of incorporation granted by the Registrar of Companies, Rajasthan at Jaipur (RoC). Pursuant to a special resolution passed by its shareholders on January 10, 2013, the company was converted into a public limited company and its name was changed to ‘AU Housing Finance Limited’. Consequently, the RoC certified the change of name upon conversion to a public limited company on January 11, 2013. Thereafter, pursuant to a special resolution passed by its shareholders on February 23, 2017, the name of the company was changed to ‘Aavas Financiers Limited’ and consequently, a fresh certificate of incorporation dated March 29, 2017 was issued by the RoC.

The company secures financing from a variety of sources including term loans and working capital facilities; proceeds from loans assigned and securitized; proceeds from the issuance of non-convertible debentures (NCDs); refinancing from the National Housing Bank (NHB); and subordinated debt borrowings from banks, mutual funds, insurance companies and other domestic, foreign and multi-lateral financial institutions to meet its capital requirements.

The company is primarily engaged in the business of providing housing loan to customers belonging to low and middle income segment in semi-urban and rural areas. These are credit worthy customers who may or may not have the income proof documents like IT return, salary slip and hence are financially excluded by other large housing finance companies and banks. AAVAS uses unique appraisal methodology to assess these customers individually. The financing solution need to be appropriated and suitable to them.

Business area of the company

The company is a retail, affordable housing finance company, primarily serving low and middle income self-employed customers in semi-urban and rural areas in India. A majority of its customers have limited access to formal banking credit. The company offers customers home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units.

Products

  • Home Loan
  • Land Purchase + Construction Loan
  • Home Improvement Loan
  • Home Loan Balance Transfer
  • Home Equity(Loan Against Property)
  • Micro, Small and Medium Enterprise (MSME) Loan

Awards and Recognition

FY 2016-17

  • Aavas Financiers received the ASSOCHAM Excellence Award for being the best housing finance company in affordable housing in 2016. The honours were done by two renowned Cabinet Ministers of India - Shri. Venkaiah Naidu (Minister of Urban Development) & Shri. Arjun Ram Meghwal (Minister of State for Finance).

FY 2019-20

  • Mr. Ghanshyam Rawat, Chief Financial Officer has awarded as best “CA-CFO for the year” under the category of “Emerging Corporate (BFSI)” by ICAI in its 13th ICAI award held on January 14, 2020 at Mumbai.

Major events and milestones

  • 2011: Incorporation of the company as Au Housing Finance Private Limited.
  • 2011: The company was registered with NHB as a ‘housing finance institution without accepting public deposits’.
  • 2012 The company received its first rating “BBB+/Stable” from CRISIL for long term bank facilities of Rs 1,000 million.
  • 2013 The company was converted into a public limited company and its name was changed to AU Housing Finance Limited.
  • 2013: Consequent to the conversion of the company into a public limited company, the NHB issued a fresh certificate of registration.
  • 2013: The company received its first refinancing assistance from NHB.
  • 2014: The company issued its first tranche of non-convertible debentures (NCDs)
  • 2015: The company entered into its first pool buyout transaction in housing loan priority sector.
  • 2015: Pursuant to a notification dated December 18, 2015 issued by the Central Government, its Company was identified as a ‘financial institution’ under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
  • 2016: Received investment from Lake District, Kedaara AIF-1, Master Fund and ESCL (defined hereinafter).
  • 2016: The company was assigned “[ICRA] A with a stable outlook’ by ICRA for long term facilities of Rs 5,000 million.
  • 2016: The company received its first subsidy from NHB under ‘CLSS-PMAY’.
  • 2017: The name of the company was changed to Aavas Financiers Limited.
  • 2017: The company was assigned “Care A+; Stable” from CARE for long term bank facilities of Rs 3,850 million and for long term subordinated debt of Rs 500 million
  • 2017: Consequent to the change in the name of the company, a fresh certificate of registration was issued by the NHB.
  • 2017: The company entered into first ‘pass through certificate’ (PTC) transaction with IDBI Trusteeship Services Limited.
  • 2018: Upgradation of its CARE rating to “Care A+; Positive” for long term facilities of Rs 10,120 million and for long term subordinated debt of Rs 1,000 million.
  • 2018: Upgradation of its CRISIL rating to “CRISIL A+/ Stable” for long term facilities of Rs 5,570 million.
  • 2018: Assignment of its ICRA rating to “[ICRA]A+/ Positive” for bank limits of Rs 12,400 million and for NCDs of Rs 3,500 million; and “[ICRA] A1+” for commercial paper of Rs 500 million.
  • 2020: Aavas Financiers raises Rs 150 crore via NCDs
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