Shares of Aadhar Housing Finance surged nearly 5% today after JM Financial initiated coverage with a “Buy” rating and a target price of ₹600, indicating a 30% upside potential. Aadhar Housing, known for its focus on affordable housing, is highlighted as a large, undervalued player in the sector with significant growth opportunities.
Aadhar Housing, established in 2010, has grown its total assets under management (AUM) to ₹217 billion. Post-acquisition by Blackstone L.P., the company has improved its corporate governance, efficiency, and profitability. With a diversified presence across 21 states, Aadhar Housing plans to expand further into tier-4 and tier-5 regions at lower costs, leveraging technology and operational efficiencies.
JM Financial projects Aadhar’s earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 26% over FY24-26, driven by 23% AUM growth, steady margins, and operating leverage. Return on assets (RoA) is expected to be 4.3%-4.5% by FY26, with robust return on equity (RoE) remaining at 17%.
As of 1:11 PM, Aadhar Housing Finance shares were trading 4.94% higher at ₹487.20 on the NSE, reflecting positive investor sentiment following JM Financial’s optimistic outlook.
