Archive · 24 Sep 2025
Aavas Financiers Stock: Should Investors Buy Now?
Aavas Financiers, a company that helps people with home loans, has seen its stock price fall recently.
This happened because the company changed leaders, and its financial results weren't as good.
The company's growth slowed down and profits went down a bit.
But, a financial firm called JM Financial thinks things will get better.
They predict the company will start doing better soon because of some accounting changes and changes in how they are raising money, also, their leaders are now in place, and asset quality remains high.
JM Financial expects the stock to improve and recommends investors buy it.
Aavas Financiers stock has underperformed peers over the past year, declining approximately 10%.
The company's AUM growth slowed down to 16% in Q1 FY26.
Return on Equity (RoE) dropped from 14.1% to 12.6% in Q1 FY26.
CVC Capital Partners now holds majority stake after the exit of Kedaara Capital and Partners Group.
JM Financial maintains a BUY rating with a target price of INR 2,000.
- Who
- Aavas Financiers
- What
- Stock underperformance and potential for improvement.
- When
- Over the past year and anticipated improvement from 2Q onwards.
- Where
- N/A
- Why
- Due to management transitions, changes in ownership and declining financial metrics, but with expectations of improvement.
- Stock Performance (1 Year)
- Down ~10%
- Stock Performance (3 Years)
- Down ~24%
- AUM Growth (Q1 FY26)
- 16%
- RoE (Q1 FY26)
- 12.6%
- Current Valuation
- 2.5x 1-year forward P/B
- New Majority Stakeholder
- CVC Capital Partners (49%)
- JM Financial Rating
- BUY, TP: INR 2,000