🏠 Aadhar Housing Finance – IPO ke baad, “Aadhar” bana ya “Bojh”?

🏠 Aadhar Housing Finance – IPO ke baad, “Aadhar” bana ya “Bojh”?

At a Glance

Aadhar Housing Finance Ltd is India’s largest HFC for the low-income segment. It lends to Tier 2-4 India with average loans under ₹15 lakh, 39% profit margin, and 17% ROE. Stock has done little since IPO but earnings are climbing steadily. Is this boringly beautiful… or beautifully boring?


1. 📢 Introduction – Why Should You Care?

  • 🧱 Largest low-income housing finance NBFC (avg loan size ₹10 lakh)
  • 💸 ₹912 Cr net profit in FY25, up 67% from FY22
  • 🔢 EPS doubled from ₹11 in FY22 to ₹21 in FY25
  • 💰 PE ratio ~21x, ROE 17%, OPM 39%
  • 🚩 Promoter pledge: 67% of their stake 🤯

After a forgettable IPO, this one’s quietly turning into a compounder… with one massive red flag stapled to it.


2. 🧱 WTF Do They Even Do?

  • Provides home loans to low-income individuals in Bharat – 80% self-employed borrowers
  • Focused on Tier 3/4 towns, small builders, informal income earners
  • Average loan size: ₹10 lakh
  • LTV (Loan-to-Value): ~58% 👌
  • 75%+ secured by mortgage of property
  • Also offers loan against property (LAP) & balance transfers

In short: Think of it as the LIC Housing for people who don’t have salary slips, living in towns where Swiggy still doesn’t deliver.


3. 📊 Financials – Is the Growth Real?

MetricFY22FY23FY24FY25
Revenue (₹ Cr)1,7282,0432,5873,108
Net Profit (₹ Cr)445545750912
EPS (₹)11.313.819.021.1
ROE15%16%18%17%
Net NPA1.1%0.9%0.7%0.7%

🔥 3-year CAGR

  • Revenue: 21%
  • Net Profit: 27%
  • EPS: 22%

Yeh toh proper “boring se sexy” graph hai.


4. 💸 Valuation – Is It Cheap, Meh, or Crack?

MetricValue
Price₹455
Book Value₹148
PE21.6x
P/B3.08x
Market Cap₹19,700 Cr
FV Range (EduEstimates)₹390 – ₹470

It’s fairly valued — below HomeFirst, AAVAS, or Aptus, and rightly so. Because…

🚩 Promoters have pledged 67.4% of their shares.

That’s a MAJOR risk. Stock deserves a slight discount until that’s sorted.


5. 🧂 What’s Cooking – Recent Drama and News

  • 🧾 May 2025 Concall: Management confident of 20% AUM growth
  • 🧍 IPO in May 2024 at ₹315 – stock up ~45% since listing
  • 💸 Net NPA remains under 1% = surprisingly safe for low-income HFC
  • 🧱 Branch expansion continues; focus on South & East India
  • 🧑🏽‍💻 Targeting deeper tech-led onboarding to reduce costs
  • 🔒 Promoters are Blackstone-backed, but pledged 67% = contradiction much?

No scandals. No fireworks. Just slow compounding. And a ticking pledge bomb.


6. 🏦 Balance Sheet – How Leveraged Are We?

YearBorrowings (₹ Cr)Net Worth (₹ Cr)Debt/Equity
FY2210,6753,1473.4x
FY2312,1533,6983.3x
FY2413,9604,4503.1x
FY2516,3226,3722.6x

🔋Debt-heavy but improving.
📉 Leverage is coming down slowly thanks to IPO funds and retained earnings.


7. 🪙 Cash Flow – Sab Number Game Hai

YearCFO (₹ Cr)CFICFFNet Flow
FY24-2,429+602+1,778-₹49 Cr
FY25-3,027+160+3,389+₹522 Cr

HFC cash flow is tricky — negative CFO due to high disbursement. No red flag here, but not juicy either.


8. 📐 Ratios – Sexy or Stressy?

MetricValue
ROE17%
ROA4.3%
NIM5.7%
GNPA1.05%
NNPA0.7%
Tier 1 Capital~40% (Healthy)
Interest Coverage< 2x ⚠️
Promoter Pledge67.4% 🚨

It’s a strong business operationally. But those low coverage ratios and promoter pledges can make investors flinch.


9. 📊 P&L Breakdown – Show Me the Money

  • 🏦 Total Income (FY25): ₹3,108 Cr
  • 💰 Net Interest Income: ₹1,197 Cr
  • 💸 PAT: ₹912 Cr
  • 🧾 Opex: ₹737 Cr
  • 📈 OPM: 39%
  • 🪙 EPS: ₹21.1
  • 📉 No dividend, again.

Margins are exceptional. No freebies (dividends) yet, but hey — reinvesting profits is fine if they keep growing at 20%+.


10. 🏁 Peer Comparison – Who Else is in the Race?

CompanyPEROEGNPANet Profit (FY25)
LIC Housing6x16%4%+₹5,442 Cr
PNB Housing14x12%~2%₹1,949 Cr
Aptus22x18.6%<1%₹751 Cr
HomeFirst37x16.5%1%₹382 Cr
Aadhar21.6x17%1.05%₹912 Cr

🧠 Insight:

  • Better than Aptus & HomeFirst on scale
  • Cheaper than HomeFirst
  • But Blackstone pledge creates an “overhang” vs others

11. 🕵️ Miscellaneous – Ownership & Oddities

  • 💼 Promoters: 75.6% (but pledged 67.4% of that 😵)
  • 💸 IPO in 2024 was mostly OFS, not fresh capital
  • 🧠 2 lakh+ public shareholders already onboard
  • 🧾 Auditors: Deloitte Haskins – ✅
  • 📈 Strong DII and FII participation growing steadily

12. 🧑‍⚖️ EduInvesting Verdict™

“It’s like your fixed deposit: stable, boring, and slightly underappreciated – until you realise it’s compounding better than your ex’s new boyfriend’s crypto account.”

✅ Best-in-class NPA
✅ Solid 20%+ profit growth
✅ Clean operations, improving leverage
❌ Pledged promoter stake = elephant in the room
❌ No dividend = “value” investors won’t love it

Fair Value Range: ₹390 – ₹470
Looks fairly priced, but a de-pledge or rating upgrade could trigger rerating. For now, it’s a compounding machine under the radar.


✍️ Written by Prashant | 📅 July 8, 2025

Tags: Aadhar Housing Finance, HFC stocks, Low Income Housing, Blackstone India, Promoter Pledge, Financial Services, Tier 3 Lending, EduInvesting, IPO Watch, NBFC Housing

Leave a Comment

Popular News

error: Content is protected !!
Scroll to Top