Chola Securities
Target: ₹600
CMP: ₹496.80
, incorporated in 1990 and headquartered in Mumbai, is one of India’s leading housing finance companies with a strong focus on the low-income housing segment.
Initially established as Vysya Bank Housing Finance Limited in Bengaluru, the company underwent several transformations, including its merger with Aadhar Housing Finance Private Limited in 2017, before becoming a public company in May 2024.
Aadhar Housing Finance presents a compelling investment case, underpinned by its strong growth trajectory, stable asset quality, and prudent risk management practices.
The company reported strong performance in Q3-FY26 and 9M-FY26, with assets under management (AUM) rising 20 per cent y-o-y to ₹28,790 crore and disbursements growing 15 per cent y-o-y to ₹6,469 crore, reaffirming its full-year guidance despite seasonal softness.
Projected Gross NPA (GNPA) of 1.23 per cnet by FY26, indicating prudent underwriting and robust risk management .Majority of portfolio is salaried customers (55 per cent of AUM), which typically ensures more stable repayment behavior compared to self-employed segments.
Overall, Aadhar Housing Finance combines scale, geographic diversification, stable asset quality, and strong profitability with clear growth visibility.
Adopting a conservative approach, valuing the company at a P/BV multiple of 2.5x on FY28e book value, we arrive at a target price of ₹600 per share over the next 15–18 months.