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AAVA

Aavas Financiers NSEI:AAVAS Stock Report

Last Price

₹1.95k

Market Cap

₹153.7b

7D

-0.9%

1Y

-27.3%

Updated

04 Jul, 2022

Data

Company Financials +
AAVAS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance2/6
Financial Health1/6
Dividends0/6

AAVAS Stock Overview

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

Rewards

Earnings are forecast to grow 17.65% per year

Earnings have grown 27.8% per year over the past 5 years

Risk Analysis

No risks detected for AAVAS from our risk checks.

Aavas Financiers Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Aavas Financiers
Historical stock prices
Current Share Price₹1,946.75
52 Week High₹3,340.00
52 Week Low₹1,815.00
Beta0.95
1 Month Change-6.01%
3 Month Change-23.09%
1 Year Change-27.32%
3 Year Change29.94%
5 Year Changen/a
Change since IPO151.40%

Recent News & Updates

Shareholder Returns

AAVASIN MortgageIN Market
7D-0.9%1.1%0.6%
1Y-27.3%-13.1%-0.3%

Return vs Industry: AAVAS underperformed the Indian Mortgage industry which returned -13.1% over the past year.

Return vs Market: AAVAS underperformed the Indian Market which returned -0.3% over the past year.

Price Volatility

Is AAVAS's price volatile compared to industry and market?
AAVAS volatility
AAVAS Average Weekly Movement5.6%
Mortgage Industry Average Movement5.5%
Market Average Movement6.8%
10% most volatile stocks in IN Market9.8%
10% least volatile stocks in IN Market4.4%

Stable Share Price: AAVAS is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AAVAS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20115,222Sushil Agarwalhttps://www.aavas.in

Aavas Financiers Limited provides housing loans to customers belonging to low- and middle-income self-employed customers in semi-urban and rural areas in India. It 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. The company also provides home equity loans; and micro, small, and medium enterprise loans for business expansion, purchase of equipment, working capital, etc., as well as home loan balance transfer and emergency credit line guarantee scheme products. As of March 31, 2022, it operated through 314 branches covering in 13 states, including Rajasthan, Maharashtra, Gujarat, Madhya Pradesh, Haryana, Uttar Pradesh, Chhattisgarh, Delhi, Punjab, Uttarakhand, Himachal Pradesh, Karnataka, and Odisha.

Aavas Financiers Fundamentals Summary

How do Aavas Financiers's earnings and revenue compare to its market cap?
AAVAS fundamental statistics
Market Cap₹153.72b
Earnings (TTM)₹3.55b
Revenue (TTM)₹8.06b

43.3x

P/E Ratio

5.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAVAS income statement (TTM)
Revenue₹8.06b
Cost of Revenue₹91.89m
Gross Profit₹7.96b
Other Expenses₹4.41b
Earnings₹3.55b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)44.98
Gross Margin98.86%
Net Profit Margin44.09%
Debt/Equity Ratio284.1%

How did AAVAS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AAVAS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAVAS?

Other financial metrics that can be useful for relative valuation.

AAVAS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does AAVAS's PE Ratio compare to its peers?

AAVAS PE Ratio vs Peers
The above table shows the PE ratio for AAVAS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.2x
IIFL IIFL Finance
10.8xn/a₹128.1b
LICHSGFIN LIC Housing Finance
8.1x19.6%₹185.4b
543335 Aptus Value Housing Finance India
37.2x18.0%₹137.8b
511196 Can Fin Homes
12.5xn/a₹58.8b
AAVAS Aavas Financiers
43.3x17.6%₹153.7b

Price-To-Earnings vs Peers: AAVAS is expensive based on its Price-To-Earnings Ratio (43.3x) compared to the peer average (17.2x).


Price to Earnings Ratio vs Industry

How does AAVAS's PE Ratio compare vs other companies in the Asian Mortgage Industry?

Price-To-Earnings vs Industry: AAVAS is expensive based on its Price-To-Earnings Ratio (43.3x) compared to the Indian Mortgage industry average (15.8x)


Price to Earnings Ratio vs Fair Ratio

What is AAVAS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAVAS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio43.3x
Fair PE Ratio17.3x

Price-To-Earnings vs Fair Ratio: AAVAS is expensive based on its Price-To-Earnings Ratio (43.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).


Share Price vs Fair Value

What is the Fair Price of AAVAS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AAVAS (₹1946.75) is trading above our estimate of fair value (₹589.43)

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


Price to Earnings Growth Ratio

PEG Ratio: AAVAS is poor value based on its PEG Ratio (2.5x)


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Future Growth

How is Aavas Financiers forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


17.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAVAS's forecast earnings growth (17.6% per year) is above the savings rate (6.8%).

Earnings vs Market: AAVAS's earnings (17.6% per year) are forecast to grow faster than the Indian market (17.3% per year).

High Growth Earnings: AAVAS's earnings are forecast to grow, but not significantly.

Revenue vs Market: AAVAS's revenue (17.7% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: AAVAS's revenue (17.7% 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 (15.7%).


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Past Performance

How has Aavas Financiers performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


27.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAVAS has high quality earnings.

Growing Profit Margin: AAVAS's current net profit margins (44.1%) are lower than last year (47.4%).


Past Earnings Growth Analysis

Earnings Trend: AAVAS's earnings have grown significantly by 27.8% per year over the past 5 years.

Accelerating Growth: AAVAS's earnings growth over the past year (22.9%) is below its 5-year average (27.8% per year).

Earnings vs Industry: AAVAS earnings growth over the past year (22.9%) underperformed the Mortgage industry 22.9%.


Return on Equity

High ROE: AAVAS's Return on Equity (12.7%) is considered low.


Discover strong past performing companies

Financial Health

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

Financial Health Score

1/6

Financial Health Score 1/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: AAVAS's Assets to Equity ratio (3.9x) 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.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.044%

Forecast Dividend Yield

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

Earnings 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.


Discover strong dividend paying companies

Management

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

6.0yrs

Average board tenure


CEO

Sushil Agarwal (46 yo)

no data

Tenure

₹30,964,000

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 ($USD392.37K) is about average for companies of similar size in the Indian market ($USD456.99K).

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


Board Members

Experienced Board: AAVAS's board of directors are considered experienced (6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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
  • Implied Market Cap: ₹153.717b
  • Shares outstanding: 78.96m
  • Website: https://www.aavas.in

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/04 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.