Aadhar Housing Finance shares surged 3% after DAM Capital initiated coverage with a ‘Buy’ rating and a target price of ₹525. As of 9:44 AM, the shares were trading 3.16% higher at Rs 416.00.
The brokerage firm highlights Aadhar’s robust presence in the affordable housing finance segment, citing its diversified geographic reach and strong sourcing channel mix as key competitive strengths.
Currently, the stock is trading at 2x its estimated FY27 book value and 13x its projected FY27 earnings. DAM Capital finds these valuations attractive, given Aadhar Housing Finance’s solid return metrics and steady growth trajectory. The company is targeting a sustainable growth rate of 20–22%, reflecting a strategic balance between expansion and asset quality management. This disciplined approach is expected to help mitigate portfolio risks while scaling up operations.
The brokerage expects the company’s Return on Equity (RoE) to range between 16–17% over FY25–FY27, with a potential peak of 18% before the next capital infusion. This optimistic outlook is driven by Aadhar’s ability to leverage its distribution network and maintain a high-quality loan book.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
