NSEI:AAVAS

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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. More Details


Snowflake Analysis

Proven track record with moderate growth potential.


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: AAVAS is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AAVAS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.2%

AAVAS

-6.2%

IN Mortgage

-1.3%

IN Market


1 Year Return

-7.6%

AAVAS

16.0%

IN Mortgage

32.8%

IN Market

Return vs Industry: AAVAS underperformed the Indian Mortgage industry which returned -3.9% over the past year.

Return vs Market: AAVAS underperformed the Indian Market which returned 0.9% over the past year.


Shareholder returns

AAVASIndustryMarket
7 Day0.2%-6.2%-1.3%
30 Day7.6%8.1%9.4%
90 Day13.6%14.5%15.8%
1 Year-7.6%-7.6%17.3%16.0%35.3%32.8%
3 Yearn/a14.4%9.5%21.0%14.8%
5 Yearn/a104.2%89.8%88.8%73.9%

Long-Term 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

Valuation

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

45.96x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AAVAS (₹1489.9) is trading above our estimate of fair value (₹94.01)

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


Price To Earnings Ratio

PE vs Industry: AAVAS is poor value based on its PE Ratio (46x) compared to the IN Mortgage industry average (14.3x).

PE vs Market: AAVAS is poor value based on its PE Ratio (46x) compared to the Indian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: AAVAS is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AAVAS is overvalued based on its PB Ratio (5.6x) compared to the IN Mortgage industry average (0.7x).


Next Steps

Future Growth

How is Aavas Financiers forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAVAS's forecast earnings growth (20.4% per year) is above the savings rate (7.2%).

Earnings vs Market: AAVAS's earnings (20.4% per year) are forecast to grow slower than the Indian market (25.6% per year).

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

Revenue vs Market: AAVAS's revenue (17.2% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: AAVAS's revenue (17.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AAVAS's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Aavas Financiers performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAVAS has high quality earnings.

Growing Profit Margin: AAVAS's current net profit margins (46%) are higher than last year (39.6%).


Past Earnings Growth Analysis

Earnings Trend: AAVAS's earnings have grown significantly by 38% per year over the past 5 years.

Accelerating Growth: AAVAS's earnings growth over the past year (32.3%) is below its 5-year average (38% per year).

Earnings vs Industry: AAVAS earnings growth over the past year (32.3%) exceeded the Mortgage industry 3.4%.


Return on Equity

High ROE: AAVAS's Return on Equity (12.1%) is considered low.


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


Financial Institutions Analysis

Asset Level: AAVAS's Assets to Equity ratio (3.7x) is low.

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

Low Risk Liabilities: AAVAS reports no customer deposits, 100% of its liabilities are made up of higher risk sources of funding.

Loan Level: Insufficient data to determine if AAVAS has an appropriate level of Loans to Assets ratio.

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if AAVAS'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 AAVAS'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?

4.3yrs

Average board tenure


CEO

Sushil Agarwal (44 yo)

no data

Tenure

₹24,006,000

Compensation

Mr. Sushil Kumar Agarwal serves as Chief Executive Officer of Aavas Financiers Limited (alternate, Au Housing Finance Limited) and it’s Managing Director since May 03, 2019. He serves as Director of Aavas ...


CEO Compensation Analysis

Compensation vs Market: Sushil's total compensation ($USD324.68K) is below average for companies of similar size in the Indian market ($USD598.71K).

Compensation vs Earnings: Sushil's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Sushil Agarwal
MD, CEO & Directorno data₹24.01m3.66%
₹ 4.3b
Nishant Sharma
Promoter Nominee Director4.33yrsno datano data
Manas Tandon
Promoter Nominee Director4.33yrsno datano data
Ramachandra Kamath
Non-Executive Nominee Director4.25yrs₹2.40m0.088%
₹ 102.7m
Kalpana Iyer
Independent Director4.33yrs₹1.00m0.0097%
₹ 11.4m
Sandeep Tandon
Independent Chairman of the Board1.17yrs₹1.00mno data
Soumya Rajan
Independent Director1.17yrs₹100.00kno data
Vivek Vig
Non-Executive Nominee Director4.25yrs₹1.00m0.51%
₹ 591.5m
Kartikeya Kaji
Promoter Nominee Director3.25yrsno datano data

4.3yrs

Average Tenure

47yo

Average Age

Experienced Board: AAVAS's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Aavas Financiers Limited
  • Ticker: AAVAS
  • Exchange: NSEI
  • Founded: 2011
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: ₹117.067b
  • Shares outstanding: 78.38m
  • 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 bungalo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 12:53
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.