Citi has reiterated its ‘Buy’ rating on Aavas Financiers, assigning a target price of ₹2,170, indicating a 31% upside from the current market price (CMP) of ₹1,655.00. The brokerage highlights Aavas Financiers’ strong potential in the secured financing space and anticipates positive catalysts in the coming months.
Key Highlights:
- Positive Catalysts Ahead:
- Citi has placed Aavas Financiers on a 90-day positive catalyst watch, expecting favorable developments for the company.
- Performance Outlook:
- Relative preference for secured financiers in Q3 drives optimism.
- Sequential AUM growth estimated at 5% for the quarter.
- Budget Expectations:
- Higher CLSS subsidies (Credit Linked Subsidy Scheme) are anticipated in the upcoming budget, supporting the company’s disbursement outlook.
- Disbursement Normalization:
- Disbursements are expected to normalize, adding stability to Aavas’ operational performance.
CMP and Target:
- Current Market Price (CMP): ₹1,655.00
- Target Price (TP): ₹2,170.00
- Upside Potential: 31%
Conclusion:
Citi remains bullish on Aavas Financiers, emphasizing its strong AUM growth trajectory and potential benefits from upcoming budget announcements. Investors looking for opportunities in secured financing may find the stock attractive at current levels.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.
