ICICI Securities has reiterated its 'Buy' rating on Aadhar Housing Finance Company Ltd. shares, maintaining a target price of ₹625 that implies a potential upside of around 29% from current levels. According to the brokerage's research report, the recommendation is based on strong growth visibility in the low-income housing segment and a favourable structural demand outlook. The brokerage highlighted that Aadhar is the only affordable housing finance company to have delivered 18% RoE in the past (FY24), making it a standout performer in the sector.
As reported by ICICI Securities, Aadhar is well positioned in the low-income housing space with the largest distribution network of over 620 branches as of March 2026. The company plans to expand this network to over 750 branches by FY28, adding 50-60 new branches per year. To sharpen focus on execution and quality, Aadhar has divided its distribution into two verticals – urban and emerging. This differentiated distribution strategy makes it the first affordable housing finance company to adopt such a segmented approach, providing competitive advantages in targeting specific market segments.
According to ICICI Securities, Aadhar expects 18-20% disbursement growth and 20-22% AUM growth in the near term. The company's near-term focus remains on regaining its 18% RoE alongside RoA of 4.2-4.4%. While acknowledging yield pressure amid increasing competition, Aadhar is confident of sustaining spreads of >5.5%. The brokerage emphasized that the company's strong competitive positioning and execution capabilities support these ambitious growth projections in the affordable housing finance segment.
