NDTV Profit'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 NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Aavas Financiers Ltd.'s assets under management growth remained strong at 22% YoY (up 3% QoQ) led by lower disbursement growth. Disbursements grew slower by 13% YoY (down 36% QoQ) during Q1 FY25 due to seasonality. Management retained guidance at 22-25% AUM growth going forward.
Asset quality deteriorated with gross non-performing asset at 1.01% versus 0.92% QoQ due to seasonality; further reported 1+ dpd at 3.65% versus 3.12%.
Spreads declined by 6bps QoQ to 5.0% due to rise in cost of borrowings. Net interest income grew by 8% YoY led by decline in NIMs; pre-provision operating profit grew by 16% YoY led by higher other income.
Profit after tax grew by 15% YoY led by higher provisions (up 51% YoY). We revised estimates upwards for FY26E adjusted book value by 1% backed by lower cost ot assets.
We maintain ‘Buy' with a new target price of Rs 2,110 (Rs 1,880) valuing it at 3.3 times P/ABV FY26E (earlier three times) as strong AUM growth with best asset quality seems sustainable.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit 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 NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
