Aavas Financiers - Positive Growth Outlook; Focus On Granularity Intact: Nirmal Bang

Nirmal Bang Report

We met with the management of Aavas Financiers Ltd. Key takeaways from the meeting are:

1. The company remains confident of achieving 20-25% assets under management growth led by sustainable demand in the HL portfolio and strong traction in the MSME book. We are building in 23% in FY25E.

2. With the expectation of a rate cut/ National Housing Board funding in Nov-24 and incremental focus on high-yielding business, we expect spreads to improve. Expect opex costs to see a gradual decline and asset quality trends to be resilient.

We value Aavas at three times June-26 price/adjusted book value with a target price of Rs 1,875. Maintain Accumulate as the current market price captures all the positives.

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