4 days ago
Aavas Financiers Retained Add Rating With ₹1,600 Target
Aavas Financiers gives loans to people, especially for housing.
Its management expects the amount of money it manages to grow by 16–18% in FY27.
It also expects loan disbursements to increase by about 22–23%.
The company wants housing loans to remain about 65% of its portfolio.
Housing loans may reduce profit margins somewhat.
To help, Aavas plans to offer higher-earning products and improve income from each transaction.
It also plans to open branches and make employees more productive.
The broker believes the company can continue growing while maintaining stable loan quality and strong profitability.
The broker retained an “Add” rating on Aavas Financiers with a June 2027 target price of ₹1,600, versus a CMP of ₹1,275.10.
Management expects 16–18% AUM growth and approximately 22–23% disbursement growth in FY27.
Aavas aims to sustain around 20% growth over the medium term while maintaining its housing-loan/non-housing-loan mix near 65:35.
Greater housing exposure could pressure margins, but risk-based pricing, state-specific products and higher income per transaction are expected to help offset this.
Branch expansion, improved employee productivity, customer retention and cost controls are expected to support profitability, stable asset quality and mid-teens ROE.
- Who
- Aavas Financiers and its management, led in the meeting by Manu Singh, Managing Director and Chief Executive Officer.
- What
- The broker retained an Add rating and a June 2027 target price of ₹1,600 for Aavas Financiers.
- Where
- The article does not specify a location.
- When
- The report was published on September 11, 2026, with growth expectations focused on FY27 and the medium term.
- Why
- The broker expects sustainable growth, stable asset quality and strong profitability, supported by business expansion, productivity gains, cost controls and operating leverage.
Key facts
- Rating
- Add
- Target price
- ₹1,600 for June 2027
- Current market price
- ₹1,275.10
- FY27 AUM growth outlook
- 16–18%
- FY27 disbursement growth outlook
- Approximately 22–23%
- Target housing-loan mix
- Housing loans/non-housing loans at approximately 65:35
- Return on equity outlook
- Mid-teens ROE
Sources
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