Citi has initiated a “Buy” rating on Aadhar Financing with a target price of ₹565, implying an upside potential of 43.5% from the current market price of ₹394.00. The brokerage highlighted Aadhar Financing’s consistent AUM growth of over 16% CAGR over the past 4–6 years and its strong, granular, and diversified distribution scale.
Enhanced technological capabilities have boosted productivity and analytics, positioning the company for a projected PAT growth of 22% in FY24–27E. Additionally, Citi estimates an RoE scaling up to 16.5%.
However, the brokerage flagged potential risks, including promoter dilution and an increasing share of informal self-employed borrowers. Despite these challenges, Citi remains optimistic about the company’s growth trajectory, supported by robust fundamentals and technological advancements.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making any investment decisions.
