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Aavas Financiers Ltd.
(AAVAS)
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Rating:64Neutral
Price Target:
₹1,195.00
▼(-11.33% Downside)
Action:Downgraded
Date:08/09/26
The score is primarily supported by strong multi-year growth and solid profitability, with a reasonable P/E providing additional support. Offsetting this, high leverage typical of mortgage lenders and volatile cash-flow indicators raise risk sensitivity, and technicals are currently weak with negative momentum and the price trading below key moving averages.
Positive Factors
Strong Revenue Growth
Rapid multi-year revenue expansion, including approximately 26% growth in FY2026, indicates continued scaling of the lending platform and loan book. Sustained top-line growth can strengthen operating leverage and provide a durable base for future earnings generation if profitability remains healthy.
Negative Factors
High Structural Leverage
Persistent leverage of roughly three times equity is inherent to mortgage lending but increases sensitivity to funding costs, credit cycles, and liquidity conditions. A more leveraged balance sheet can narrow financial flexibility and make earnings more exposed to changes in borrowing or asset quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Rapid multi-year revenue expansion, including approximately 26% growth in FY2026, indicates continued scaling of the lending platform and loan book. Sustained top-line growth can strengthen operating leverage and provide a durable base for future earnings generation if profitability remains healthy.
Read all positive factors
Aavas Financiers Ltd. (AAVAS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹88.53B
Dividend YieldN/A
Average Volume (3M)24.82K
Price to Earnings (P/E)12.6
Beta (1Y)0.84
Revenue Growth12.03%
EPS Growth16.64%
CountryIN
Employees7,649
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)88.91
Shares Outstanding79,295,870
10 Day Avg. Volume9,691
30 Day Avg. Volume24,815
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)1.69
Price to Sales (P/S)3.18
P/FCF Ratio11.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)95.22
Revenue Forecast (FY)₹18.15B
Aavas Financiers Ltd. Business Overview & Revenue Model
Company Description
Established in 2011 and headquartered in Jaipur, India, Aavas Financiers Limited (known as AU Housing Finance Limited until February 2017) specializes in providing housing finance solutions. The company primarily serves self-employed individuals f...
How the Company Makes Money
Aavas Financiers makes money primarily through net interest income generated from lending activities. The core revenue stream is interest earned on its loan book (mainly housing loans and LAP) minus interest paid on its borrowings (funding raised ...
Aavas Financiers Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.63B | 26.85B | 19.88B | 16.80B | 13.56B | 11.11B |
| Gross Profit | 17.13B | 26.42B | 6.35B | 5.24B | 4.96B | 4.30B |
| EBITDA | 8.88B | 8.84B | 7.74B | 6.63B | 5.81B | 4.80B |
| Net Income | 7.05B | 6.55B | 5.74B | 4.91B | 4.30B | 3.55B |
Balance Sheet | ||||||
| Total Assets | 223.41B | 212.13B | 186.18B | 165.19B | 134.10B | 110.17B |
| Cash, Cash Equivalents and Short-Term Investments | 19.00B | 18.43B | 15.60B | 205.58M | 13.93B | 16.60B |
| Total Debt | 164.85B | 156.86B | 138.50B | 123.98B | 98.87B | 80.12B |
| Total Liabilities | 169.43B | 161.62B | 142.58B | 127.46B | 101.40B | 82.11B |
| Stockholders Equity | 53.98B | 50.51B | 43.61B | 37.73B | 32.70B | 28.06B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 7.59B | 5.63B | 5.13B | 4.82B | 4.00B |
| Operating Cash Flow | 0.00 | 7.91B | 5.93B | 5.46B | 5.21B | 4.15B |
| Investing Cash Flow | 0.00 | -22.94B | -20.77B | -31.93B | -22.49B | -20.13B |
| Financing Cash Flow | 0.00 | 17.20B | 14.75B | 24.91B | 18.58B | 16.23B |
Aavas Financiers Ltd. Technical Analysis
Negative
1347.75
Price Trends
1255.30
Negative
1342.80
Negative
1331.64
Negative
Market Momentum
-38.45
Positive
32.18
Neutral
23.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AAVAS, the sentiment is Negative. The current price of 1347.75 is above the 20-day moving average (MA) of 1186.45, above the 50-day MA of 1255.30, and above the 200-day MA of 1331.64, indicating a bearish trend. The MACD of -38.45 indicates Positive momentum. The RSI at 32.18 is Neutral, neither overbought nor oversold. The STOCH value of 23.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AAVAS.
Aavas Financiers Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | ₹88.53B | 12.55 | ― | ― | 12.03% | 16.64% | |
63 Neutral | ₹96.56B | 8.38 | ― | 2.07% | 7.90% | 25.13% | |
63 Neutral | ₹106.00B | 18.13 | ― | 0.51% | 19.19% | 26.51% | |
62 Neutral | ₹99.46B | 10.09 | ― | 2.27% | 20.54% | 23.05% | |
61 Neutral | ₹188.84B | 16.38 | ― | ― | 18.04% | 19.18% | |
60 Neutral | ₹19.11B | 3.99 | ― | 1.64% | 4.35% | 3.85% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:AAVAS
Aavas Financiers Ltd.
1,113.30
-566.95
-33.74%
IN:AADHARHFC
Aadhar Housing Finance Ltd
439.50
-74.20
-14.44%
IN:APTUS
Aptus Value Housing Finance India Limited
200.40
-106.96
-34.80%
IN:CANFINHOME
Can Fin Homes Ltd.
731.90
-128.59
-14.94%
IN:HOMEFIRST
Home First Finance Company India Ltd.
1,055.80
-146.73
-12.20%
IN:REPCOHOME
Repco Home Finance Ltd.
311.40
-99.42
-24.20%
Aavas Financiers Ltd. Corporate Events
Aavas Financiers launches digital postal ballot and e-voting process for shareholders
Oct 2, 2026
Aavas Financiers Limited has completed the electronic dispatch of its Postal Ballot notice and accompanying e-voting information to eligible shareholders whose email addresses are registered as of the September 25, 2026 cut-off date. The company h...
Aavas Financiers Told to Repay NHB Refinance and Pay Penal Charges
Sep 18, 2026
Aavas Financiers Ltd. has disclosed that it received a communication from the National Housing Bank regarding certain loan pools availed under its refinance scheme. As the refinance provider, the NHB has levied penal charges of INR 1.09 crore on t...
Aavas Financiers Secures AGM Nod for Board Changes and Rs 9,000 Crore Debt Issuance
Sep 17, 2026
Aavas Financiers Ltd. announced that all resolutions placed before shareholders at its 16th Annual General Meeting, held via video conferencing, were approved with the requisite majority. The meeting confirmed key boardroom changes, including the ...
Aavas Financiers Allots 4,301 Shares Under Employee Stock Option Plans
Aug 20, 2026
Aavas Financiers Limited has approved the allotment of 4,301 equity shares with a face value of Rs.10 each under its Performance Stock Option Plan-2023 and Performance Stock Option Plan-2024 schemes, following the exercise of employee stock option...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.