🏠 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?