Chola Securities has issued a Buy rating for Aadhar Housing Finance Limited with a target price of ₹600 per share, representing a potential upside from the current market price of ₹496.80. According to reports from The Hindu BusinessLine, the brokerage has adopted a conservative valuation approach, applying a P/BV multiple of 2.5x on FY28e book value to arrive at this target price over the next 15-18 months.
The company demonstrated robust growth in Q3-FY26 and 9M-FY26, with assets under management (AUM) rising 20% year-on-year to ₹28,790 crore and disbursements growing 15% year-on-year to ₹6,469 crore. As reported by The Hindu BusinessLine, this performance reaffirms the company's full-year guidance despite seasonal softness in the market. The strong disbursement growth indicates continued business momentum and market demand for housing finance products.
The company's asset quality metrics show projected Gross NPA (GNPA) of 1.23% by FY26, indicating prudent underwriting and robust risk management practices. According to the brokerage report, the majority of the portfolio comprises salaried customers at 55% of AUM, which typically ensures more stable repayment behavior compared to self-employed segments. This customer composition provides greater visibility into repayment patterns and reduces credit risk exposure.
Aadhar Housing Finance Limited, incorporated in 1990 and headquartered in Mumbai, is one of India's leading housing finance companies with a strong focus on the low-income housing segment. As reported by The Hindu BusinessLine, the company initially operated as Vysya Bank Housing Finance Limited in Bengaluru before undergoing several transformations, including its merger with Aadhar Housing Finance Private Limited in 2017, and becoming a public company in May 2024. The company presents a compelling investment case underpinned by its strong growth trajectory, stable asset quality, and prudent risk management practices.
