DAM Capital has initiated coverage on Aadhar Housing Finance with a ‘Buy’ rating and a target price of ₹525, implying a potential upside of around 30% from the current market price of ₹403.50. The brokerage is optimistic about the company’s strong positioning in the affordable housing finance sector, citing its best-in-class geographic granularity and a more holistic sourcing channel mix as key competitive advantages over peers.
The stock is currently trading at 2x FY27E book value and 13x FY27E earnings, which DAM Capital views as attractive, given the company’s solid return metrics and consistent growth outlook.
Aadhar is targeting a 20–22% growth rate, which the brokerage says reflects a calibrated approach aimed at maintaining quality while leveraging its varied sourcing strengths. This prudent strategy is expected to aid in controlling portfolio risk even as the company scales operations.
DAM Capital projects Return on Equity (RoE) to range between 16–17% over FY25–FY27, with the potential to peak at 18% before the next round of capital infusion.
With strong earnings visibility, operational efficiency, and a stable risk profile, DAM Capital sees Aadhar Housing Finance as a compelling long-term play in the affordable housing space.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
