Buy Aavas Financiers, target price Rs 2845: ICICI Securities

ICICI Securities has buy call on Aavas Financiers with a target price of Rs 2845. The current market price of Aavas Financiers is Rs 1996.15. Time period given by analyst is one year when Aavas Financiers Ltd. price can reach defined target.

Aavas Financiers Ltd., incorporated in the year 2011, is a Mid Cap company (having a market cap of Rs 15777.95 Crore) operating in NBFC sector.

Aavas Financiers Ltd. key Products/Revenue Segments include Interest, Income From Financial Services, Fees & Commission Income and Income From Sale Of Share & Securities for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 395.18 Crore, up 11.96 % from last quarter Total Income of Rs 352.95 Crore and up 21.43 % from last year same quarter Total Income of Rs 325.45 Crore. Company reported net profit after tax of Rs 106.64 Crore in latest quarter.

Investment Rationale
The brokerage maintains BUY with the target price unchanged at Rs2,845 (6.0x FY24E BV). Key risks: 1) elevated opex weighing on RoA improvement, 2) competitive pressure on yields.

Promoter/FII Holdings
Promoters held 39.19 per cent stake in the company as of 30-Jun-2022, while FIIs owned 39.03 per cent, DIIs 10.19 per cent.