At a Glance

Aptus Value Housing just reported a PAT of ₹219 Cr (+28% YoY) on Revenue ₹520 Cr (+32% YoY). AUM surged to ₹11,267 Cr, making this micro-lender a serious contender in housing finance. But wait—while profits are booming, promoters are quietly reducing their stake (down to 40% from 53% last year). Stock P/E at 20.5 looks moderate, but with a book value of ₹86, it’s trading at 3.8x P/B—definitely not a bargain. Growth story intact, but shareholders better buckle up.

Introduction

Imagine a company that lends to people banks avoid—self-employed, low-income first-time homebuyers. Aptus thrives in this niche, posting robust numbers quarter after quarter. However, the stock has been range-bound, thanks to promoter stake dilution and market skepticism. Investors are asking: is this the next HDFC-lite or just a rural lending bubble waiting to pop?

Business Model (WTF Do They Even Do?)

Aptus provides:

• Housing Loans: For constructing or buying homes.
• Business Loans: For small entrepreneurs, secured against property.
• Quasi-Home Loans: Refinancing and renovation loans up to ₹25L.
• Insurance: Credit shield & property coverage via tie-ups.

The catch? Loans are targeted at semi-urban/rural borrowers with limited formal income proofs—high yield but high risk. Unlike big banks, Aptus focuses on collateral-backed lending and maintains low NPAs, making it a sweet spot player in affordable housing.

Financials Overview

Q1 FY26:

• Revenue: ₹520 Cr (+32% YoY)
• PAT: ₹219 Cr (+28% YoY)
• EPS: ₹4.39
• AUM: ₹11,267 Cr (+24% YoY)

FY25:

• Revenue: ₹1,876 Cr
• PAT: ₹799 Cr
• ROE: 18.6%
• ROCE: 15%

Roast: Lending margins fat, credit cost low—this is NBFC crack. But watch out, interest rates and promoter sell-offs can spoil the party.

Valuation

• P/E: 20.5 (reasonable for growth)
• P/B: 3.8 (rich vs peers)
• ROE: 18.6% (healthy)

Fair Value Estimate:

1. P/E Method: EPS FY26E ~₹17; fair P/E 18 → ₹306
2. P/B Method: Book ₹86; fair P/B 3–3.5 → ₹260–₹300
3. DCF: Growth 20%, discount 12% → ₹320

Fair Value Range: ₹280–₹320 (current ₹328 slightly above fair value).

What’s Cooking – News, Triggers, Drama

• CARE Rating: Upgraded to AA—lower borrowing costs incoming.
• Promoter Exit: Stake cut from 53% to 40%—market hates this.
• Dividend: 1.37% yield, decent for NBFC.
• Triggers: Strong rural housing demand, government housing push.

Balance Sheet

Commentary: Leverage exists but manageable. Ratings upgrade helps keep cost of funds low.

Cash Flow – Sab Number Game Hai

Roast: Negative operating cash flow—common for NBFCs due to loan disbursals, but still scary-looking.

Ratios – Sexy or Stressy?

Verdict: Sexy margins, but debt-driven.

P&L Breakdown – Show Me the Money

Roast: Profits compounding faster than a Ponzi—only this one is legal.

Peer Comparison

Roast: Aptus trades like a premium NBFC, but without the big-brand halo.

Miscellaneous – Shareholding, Promoters

• Promoters: 40.4% (big drop)
• FIIs: 30.4% (they love it)
• DIIs: 16% (increasing)
• Public: 13% (minority left holding the bag)

EduInvesting Verdict™

Aptus is the classic high-growth housing financier targeting underserved markets. Its margins and ROE are solid, growth is consistent, and asset quality is under control. However, the promoter stake sell-off is a red flag—it signals either diversification or loss of interest. At current levels, the stock looks fairly valued with limited near-term upside.

SWOT

• Strengths: Niche lending, high margins, low NPAs, AA credit rating.
• Weaknesses: High P/B, negative cash flows, promoter exits.
• Opportunities: Affordable housing boom, rural credit demand.
• Threats: Rising rates, competition from bigger HFCs, regulatory changes.

Final Take: Great fundamentals, but the promoter dump is like a wedding where the groom leaves early—still a party, but investors are nervous.

Written by EduInvesting Team | 31 July 2025
SEO Tags: Aptus Value Housing, Housing Finance, NBFC Stocks