Aavas Financiers, Aptus Value, Home First Finance Gets A 'Buy' As Centrum Broking Initiates Coverage

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.We initiate coverage on three affordable housing finance companies viz., Aavas Financiers Ltd. (target price Rs 2070), Aptus Value Housing Finance India Ltd. (target price Rs 380) and Home First Finance Company India Ltd. (target price Rs 1130) with a 'Buy' rating. Affordable housing finance is a multiyear growth opportunity. The affordable housing finance have registered five-year assets under management compound annual growth rate in the range of 28% to 40% with return on assets more than 3.5% and low credit costs (0.2%-0.5% five-year average). The underwriting practices have stood the test of Covid with minimal write-offs despite lending to informal customer segment. Competition from large banks/ nob-banking financial companies is at bay due to-Branch/people intensive business model,customer cashflow based income assessment, low agreement-to-sell (between 0.8 million-1.1 million) and understanding of local nuances. Yields across players have remained strong and healthy across cycles while Cost of Funding has been in control due to National Housing Bank borrowings. Pre provision operating profit/assets have remained strong in the range of 4.6% to 10.7% despite opex intensive business. The afforable housing finance companies are well capitalized to support growth over next few years. Higher leverage may impact return on asset however improve return on equity profile. We build in average RoE at 15.3%/18.6%/15.9% for Aavas, Aptus and Home First for FY24-26E, respectively..Click on the attachment to read the full report:.Aavas Financiers, Aptus Value, Home First Finance, Can Fin Homes - Systematix Initiates Coverage With A 'Buy'.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aavas Financiers, Aptus Value, Home First Finance Gets A 'Buy' As Centrum Broking Initiates Coverage

Affordable housing finance is a multiyear growth opportunity.

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Aavas Financiers, Aptus Value, Home First Finance Gets A 'Buy' As Centrum Broking Initiates Coverage

Affordable housing finance is a multiyear growth opportunity.

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