As part of its Samvat 2081 Diwali Picks, Kotak Securities has highlighted Aadhar Housing Finance with a “Buy” rating, setting a target price of ₹550. The stock, currently trading at ₹439, is projected to offer an upside of 25.3% over the next 12 months. Positioned as a leading player in the affordable housing finance sector, Aadhar Housing Finance holds a strong market presence with a diverse portfolio and robust growth strategy. Here’s a quick summary of Kotak’s projections:
| Parameter | Value |
|---|---|
| Current Market Price (CMP) | ₹439 |
| Target Price | ₹550 |
| Upside Potential | 25.3% |
Key Investment Highlights for Aadhar Housing Finance
- Leader in Affordable Housing Finance
Aadhar Housing Finance is one of the largest players in affordable housing finance, with an AUM of ₹21,100 crore in FY24. The company holds a 7% market share in the affordable housing segment, making it a strong presence in this growing sector. - Geographical Diversification
The company’s portfolio is spread across various regions, with no single state accounting for more than 15% of its AUM. This diversification reduces regional risk and enhances revenue stability. - Growth Potential
Kotak Securities projects a 21% compound annual growth rate (CAGR) in AUM for Aadhar Housing Finance from FY24 to FY27, driven by its expansion strategy and appraisal model. This growth trajectory positions Aadhar Housing well to capitalize on the increasing demand in the affordable housing finance sector. - Financial Resilience and Improving Margins
Aadhar Housing’s stable margins and improving leverage are expected to push its return on equity (RoE) back to high teens, demonstrating the company’s financial health and growth potential. - Competitive Edge and Strong Asset Quality
Aadhar Housing’s large balance sheet, seasoned portfolio, and asset quality management give it an advantage over peers. Its consistent track record in maintaining asset quality underscores effective risk management and long-term stability.
With a target price of ₹550 and a projected 25.3% upside, Aadhar Housing Finance is a top recommendation by Kotak Securities for this Diwali. The company’s strong fundamentals, diversified portfolio, and significant growth potential make it a compelling choice for investors looking to capitalize on India’s growing affordable housing finance market.
Disclaimer: This article is based on Kotak Securities’ research and is intended for informational purposes only. Investors are advised to consult a financial advisor and refer to the detailed research report before making any investment decisions
