BSE:541988

Stock Analysis Report

Aavas Financiers

Executive Summary

Aavas Financiers Limited provides housing loans to customers belonging to low- and middle- income segments in semi-urban and rural areas in India.


Snowflake Analysis

High growth potential with solid track record.


Similar Companies

Share Price & News

How has Aavas Financiers's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 541988 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

541988

-1.0%

IN Mortgage

-0.7%

IN Market


1 Year Return

97.2%

541988

14.3%

IN Mortgage

10.0%

IN Market

Return vs Industry: 541988 exceeded the Indian Mortgage industry which returned 15.6% over the past year.

Return vs Market: 541988 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

541988IndustryMarket
7 Day4.2%-1.0%-0.7%
30 Day1.2%-3.2%-0.3%
90 Day14.1%6.1%3.2%
1 Year97.2%97.2%15.8%14.3%12.0%10.0%
3 Yearn/a44.0%38.1%23.9%17.1%
5 Yearn/a72.7%60.9%38.3%25.6%

Price Volatility Vs. Market

How volatile is Aavas Financiers's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Aavas Financiers undervalued compared to its fair value and its price relative to the market?

63.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 541988 (₹1968.05) is trading above our estimate of fair value (₹62.04)

Significantly Below Fair Value: 541988 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 541988 is poor value based on its PE Ratio (63x) compared to the Mortgage industry average (12.1x).

PE vs Market: 541988 is poor value based on its PE Ratio (63x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 541988 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 541988 is overvalued based on its PB Ratio (7.8x) compared to the IN Mortgage industry average (1.1x).


Next Steps

Future Growth

How is Aavas Financiers forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

26.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 541988's forecast earnings growth (26.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 541988's earnings (26.5% per year) are forecast to grow faster than the Indian market (21.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 541988's revenue (26.2% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 541988's revenue (26.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 541988's Return on Equity is forecast to be low in 3 years time (16.1%).


Next Steps

Past Performance

How has Aavas Financiers performed over the past 5 years?

36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 541988 has high quality earnings.

Growing Profit Margin: 541988's current net profit margins (44.9%) are higher than last year (34.3%).


Past Earnings Growth Analysis

Earnings Trend: 541988's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: 541988's earnings growth over the past year (64.9%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: 541988 earnings growth over the past year (64.9%) exceeded the Mortgage industry 16.1%.


Return on Equity

High ROE: 541988's Return on Equity (12.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aavas Financiers's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 541988 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 541988's debt is covered by short term assets (assets are 1.5x debt).


Financial Institutions Analysis

Asset Level: 541988's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 541988 has a sufficient allowance for bad loans.

Low Risk Liabilities: 541988 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 541988 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 541988 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 541988 has an appropriate level of bad loans.


Next Steps

Dividend

What is Aavas Financiers's current dividend yield, its reliability and sustainability?

0.022%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage1.1%forecastin3Years0.02%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 541988's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 541988's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 541988's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 541988's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 541988's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average board tenure


CEO

Sushil Agarwal (43yo)

₹312,206,000

Compensation

Mr. Sushil Kumar Agarwal serves as Chief Executive Officer of Aavas Financiers Limited (alternate, Au Housing Finance Limited) and its Managing Director since May 03, 2019. Mr. Agarwal has 12 years of expe ...


CEO Compensation Analysis

Compensation vs Market: Sushil's total compensation ($USD4.36M) is above average for companies of similar size in the Indian market ($USD640.58K).

Compensation vs Earnings: Sushil's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Sushil Agarwal
MD, CEO & Whole Time Director0yrs₹312.21m3.73% 5.7b
Nishant Sharma
Non-Executive Nominee Director3.7yrsno datano data
Manas Tandon
Non-Executive Nominee Director3.7yrsno datano data
Kasargod Kamath
Non-Executive Nominee Director3.6yrs₹1.95m0.088% 135.2m
Kalpana Iyer
Independent Director3.7yrs₹725.00k0.022% 34.6m
Sandeep Tandon
Independent Chairman of the Board1.1yrs₹600.00kno data
Soumya Rajan
Additional Director1.1yrsno datano data
Vivek Vig
Non-Executive Nominee Director3.6yrs₹200.00k0.66% 1.0b
Kartikeya Kaji
Non-Executive Nominee Director2.6yrsno datano data

3.6yrs

Average Tenure

50yo

Average Age

Experienced Board: 541988's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 541988 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.2%.


Top Shareholders

Company Information

Aavas Financiers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aavas Financiers Limited
  • Ticker: 541988
  • Exchange: BSE
  • Founded: 2011
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹153.930b
  • Shares outstanding: 78.30m
  • Website: https://www.aavas.in

Number of Employees


Location

  • Aavas Financiers Limited
  • 201-202, Southend Square
  • 2nd Floor
  • Jaipur
  • Rajasthan
  • 302020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
541988BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2018
AAVASNSEI (National Stock Exchange of India)YesEquity SharesININROct 2018

Biography

Aavas Financiers Limited provides housing loans to customers belonging to low- and middle- income segments in semi-urban and rural areas in India. The company offers home loans for flats, houses, and bungalows, as well as resale properties; land purchase and construction loans, including finance for self-construction of residential house; and home improvement loans, which include loans for tiling or flooring, plaster, painting, etc. It also provides home equity loans; and micro, small, and medium enterprise loans for business expansion, purchase of equipment, working capital, etc., as well as balance transfer loans and products. As of March 31, 2019, it operated through 210 branches covering 122 districts in 10 states, including Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Haryana, Delhi, Chhattisgarh, Uttar Pradesh, Uttarakhand, and Punjab. Aavas Financiers Limited was formerly known as AU Housing Finance Limited and changed its name to Aavas Financiers Limited in February 2017. The company was incorporated in 2011 and is based in Jaipur, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 13:27
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.