Aavas Financiers Q4 Review - Resilience Instils Confidence; Deserves Premium: ICICI Securities
Residential buildings stand at a housing complex in Noida, Uttar Pradesh, India. (Photographer: Anindito Mukherjee/Bloomberg)

Aavas Financiers Q4 Review - Resilience Instils Confidence; Deserves Premium: ICICI Securities

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.

ICICI Securities Report

Aavas Financiers Ltd.’s FY21 performance demonstrated resilient and best-in-class portfolio quality as indicated by stage-III assets at 0.98%, 60 basis points credit cost, 1+ days past due pool at 6.4%, and zero restructuring.

Despite running tight filters in self-employed and loan against property segments, disbursements were down only 10% in FY21 while assets under management growth was more than 20%.

Investing into franchise (adding branches and employees) during a challenging macro instills our confidence in its ability to sustain 25% AUM growth in FY23E and beyond.

Core spreads improved through FY21 and can be maintained.

Click on the attachment to read the full report:

ICICI Securities Aavas Q4FY21 Results Review .pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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