Shares of Aadhar Housing Finance surged over 5% in the opening trade today after brokerage firm Kotak Institutional Equities initiated coverage with a Buy rating on the stock. As of 9:25 AM, Aadhar Housing Finance shares were up 5.1% at Rs 409.75 on the NSE.
Kotak has a target price of ₹550 per share on Aadhar Housing Finance, implying a 41% upside from current market price of Rs 389 per share. The brokerage highlights Aadhar Housing as a major player in the affordable housing finance sector, with assets under management (AUM) of ₹211 billion in FY2024, accounting for a 7% market share in this segment.
Kotak Institutional Equities is optimistic about Aadhar Housing’s growth prospects, projecting a 21% compound annual growth rate (CAGR) in AUM from FY2024 to FY2027. This growth is expected to be driven by the company’s multipronged expansion and appraisal strategy, which aims to capitalize on the increasing demand for affordable housing finance across diverse geographies and customer profiles.
