Morgan Stanley has maintained an ‘Equal-weight’ rating on Aavas Financiers, with a target price of ₹1,780, citing a seasonally strong Q4FY25, led by higher disbursements and AUM growth. Disbursements rose 27% QoQ and 7% YoY to ₹20.2 billion, while assets under management (AUM) grew 18% YoY to ₹204 billion.
The lender added 24 new branches, taking the total to 397. Asset quality remained stable, with a slight improvement in gross Stage 3 assets and early delinquencies. Morgan Stanley highlighted a strong liquidity position with ₹32.2 billion in cash as of March-end.
The brokerage noted that incremental borrowings and securitisation activity remained healthy and supported growth. However, MS maintains its neutral stance pending greater visibility on long-term return ratios.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
