BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
Aavas Financiers Ltd. mirrors strong business model of yesteryear’s Gruh Finance. We reckon company will continue to command premium valuations as-
Aavas Financiers is the only niche dominant play in the self-employed affordable housing finance space which has been overlooked not only by banks but also non banking financial companies,
it maintains pricing power backed by risk-adjusted yields and cost effective funding,
it has a differentiated lean operating model backed by technology,
it boasts of in-house risk management systems and impeccable asset quality,
it maintains strong capital buffers with superior execution skills.
We expect impressive growth across earnings parameters with 24% assets under management compound annual growth rate, net interest margins at average 7.2%, non performing asset of 1.3% and industry leading return on asset/return on equity at 3.2%/17.0% plus over FY22-24E.
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