Aptus Value Housing Finance soars 8%; Citi initiates coverage on stocks

Aptus Value Housing Finance India rallied 8 percent to a high of Rs 321.35 on the BSE in Thursday’s intraday trade, even as the broader markets remained under pressure owing to global cues.

At 11:30 AM, the stock quoted 5.6 per cent higher at Rs 314. The counter witnessed a volume of around 74,000 shares as against its two-week daily average traded volume of around 49,000 shares on the BSE. Meanwhile, the S&P BSE Sensex was down 0.8 percent at 58,987.

Recently, the Citi group had initiated coverage on the stock, with a ‘Buy’ rating and a target price of Rs 425 per share.

According to the report, Aptus which operates in the niche affordable-housing segment has demonstrated quality underwriting, with credit cost less than 20 bps pre-Covid and peak of 86 bps after Covid.

The report states that pricing power and efficient cost structure helped the company deliver healthy ROA (7.4 percent in FY22), although low average (assets/equity 2X as on June 2022) limits ROE.

That apart, more non-salaried customer segment, high share of non-housing loans and high pricing power in its geographies help Aptus drive higher-than-peers NIM. And, the low-cost/ assets drives higher ROA/ ROE.

Any change in senior management, impact of expansion into new states on profitability and geographic concentration in select states, are some of the key risks highlighted by the report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Leave a Comment