JM Financial maintains Buy on Aadhar Housing Finance, target price unchanged at Rs 525

JM Financial has maintained Buy call on Aadhar Housing Finance with an unchanged target price of Rs 525. The current market price of Aadhar Housing Finance is Rs 455.75. The time period given by the analyst is a year when Aadhar Housing Finance price can reach the defined target. Aadhar Housing Finance, incorporated in 1990, is a Small Cap company with a market cap of Rs 19632.31 crore, operating in the NBFC sector.

Aadhar Housing Finance 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-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 833.84 crore, up 4.54% from last quarter Total Income of Rs 797.64 crore and up 20.53% from last year same quarter Total Income of Rs 691.81 crore. The company has reported net profit after tax of Rs 244.84 crore in the latest quarter.

The company's top management includes Mr.Om Prakash Bhatt, Mr.Deo Shankar Tripathi, Mr.Rishi Anand, Ms.Sharmila A Karve, Dr.(Ms.)Nivedita Haran, Mr.Amit Dixit, Mr.Mukesh Mehta, Mr.Prateek Roongta. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 43 Crore shares outstanding.

Investment Rationale
JM Financial remains confident in Aadhar's strong growth outlook, supported by its pan-India presence, deepening penetration across urban and emerging markets, and scalable technology infrastructure. They expect AUM CAGR of 20% during FY25-27E and average RoAs/RoE of ~4.2%/16% over FY26-27E. The brokerage maintains a BUY rating with a target price of Rs 525, valuing the company at 2.6x FY27E BV.

Promoter/FII Holdings
Promoters held 75.61 per cent stake in the company as of 31-Mar-2025, while FIIs owned 5.32 per cent, DIIs 7.5 per cent.