Aadhar Housing, Aavas Financiers, Home First, India Shelter shares: Check target prices
The brokerage said return ratios in the sector remain materially above those of prime housing financiers.
- Aug 31, 2026,
- Updated Aug 31, 2026 11:44 AM IST
Systematix Institutional Equities has initiated coverage on the affordable housing finance sector with a constructive stance, citing improving fundamentals, healthy loan growth and strong earnings compounding.
The brokerage said return ratios in the sector remain materially above those of prime housing financiers.
It added that concerns around competition have moderated, while the recent change in disbursement recognition norms is expected to have a modest, one-quarter impact.
Systematix said the structural opportunity in affordable housing finance remains intact, supported by low mortgage penetration and a large lower-ticket housing market.
It also highlighted loan-against-property (LAP) diversification and improving productivity as factors strengthening sector economics.
On valuations, the brokerage noted that most stocks in its coverage universe are trading at or below their historical -1 standard deviation valuations.
The stocks are also trading at an 11-57 per cent discount to their long-term averages, according to Systematix.
Against this backdrop, Systematix has initiated coverage with a 'BUY' rating on five stocks.
It has set a target price of Rs 1,570 for Home First Finance Company India, Rs 380 for Aptus, Rs 1,700 for Aavas Financiers, Rs 600 for Aadhar Housing Finance and Rs 880 for India Shelter Finance Corporation.
Systematix said it sees a favourable risk-reward profile across the sector, with differentiated investment propositions among the companies under its coverage.
Systematix Institutional Equities has initiated coverage on the affordable housing finance sector with a constructive stance, citing improving fundamentals, healthy loan growth and strong earnings compounding.
The brokerage said return ratios in the sector remain materially above those of prime housing financiers.
It added that concerns around competition have moderated, while the recent change in disbursement recognition norms is expected to have a modest, one-quarter impact.
Systematix said the structural opportunity in affordable housing finance remains intact, supported by low mortgage penetration and a large lower-ticket housing market.
It also highlighted loan-against-property (LAP) diversification and improving productivity as factors strengthening sector economics.
On valuations, the brokerage noted that most stocks in its coverage universe are trading at or below their historical -1 standard deviation valuations.
The stocks are also trading at an 11-57 per cent discount to their long-term averages, according to Systematix.
Against this backdrop, Systematix has initiated coverage with a 'BUY' rating on five stocks.
It has set a target price of Rs 1,570 for Home First Finance Company India, Rs 380 for Aptus, Rs 1,700 for Aavas Financiers, Rs 600 for Aadhar Housing Finance and Rs 880 for India Shelter Finance Corporation.
Systematix said it sees a favourable risk-reward profile across the sector, with differentiated investment propositions among the companies under its coverage.