ICICI Securities retains 'Buy' on Aadhar Housing Finance, sees 24% upside
The brokerage, which hosted Aadhar Housing Finance in Singapore for an investor roadshow, highlighted that the company is the largest housing finance company (HFC) in the low-income affordable housing segment in terms of disbursements, profitability and distribution.
- Sep 15, 2025,
- Updated Sep 15, 2025 4:26 PM IST
ICICI Securities has reiterated its Buy rating on Aadhar Housing Finance Ltd, setting a target price of Rs 625, which implies a 24 per cent upside from the calculated price of Rs 506.
The brokerage, which hosted Aadhar Housing Finance in Singapore for an investor roadshow, highlighted that the company is the largest housing finance company (HFC) in the low-income affordable housing segment in terms of disbursements, profitability and distribution. The firm disbursed about Rs 2,000 crore in Q1 FY26, reported a profit after tax (PAT) of Rs 240 crore and operated 591 branches as of June 2025.
According to ICICI Securities, the Indian housing finance market is segmented into prime (loans above Rs 35 lakh), mid-income (Rs 15–35 lakh) and low-income affordable housing (below Rs 15 lakh). Aadhar Housing has established a leading position in the affordable housing category, supported by a wide distribution network and dedicated urban and emerging verticals for growth.
Management has estimated the financing opportunity in the affordable housing space at about Rs 45 lakh crore, nearly 3.5 times higher than the current loan volume of Rs 13 lakh crore. Aadhar Housing plans to expand its branch network to more than 750 by FY28, adding 50–60 branches annually. It expects disbursement growth of 18–20 per cent and AUM growth of 20–22 per cent in the near term.
On financial performance, Aadhar Housing is targeting a return on equity (RoE) of 18 per cent and a return on assets (RoA) of 4.2–4.4 per cent. It was the only affordable HFC to achieve an RoE of 18 per cent in FY24. The company guided for credit costs within 25–27 basis points (bps) in FY26 and aims to reduce its gross non-performing loans (GNPL) to around 1.1 per cent from the current 1.34 per cent.
Exposure to the southern region is about 30 per cent of its branch network, with Tamil Nadu accounting for 10 per cent and Karnataka 6 per cent, as of June 2025. Loans against property (LAP) form around 27 per cent of its AUM. ICICI Securities noted that bounce rates remain within historical ranges without showing early stress signals.
ICICI Securities has reiterated its Buy rating on Aadhar Housing Finance Ltd, setting a target price of Rs 625, which implies a 24 per cent upside from the calculated price of Rs 506.
The brokerage, which hosted Aadhar Housing Finance in Singapore for an investor roadshow, highlighted that the company is the largest housing finance company (HFC) in the low-income affordable housing segment in terms of disbursements, profitability and distribution. The firm disbursed about Rs 2,000 crore in Q1 FY26, reported a profit after tax (PAT) of Rs 240 crore and operated 591 branches as of June 2025.
According to ICICI Securities, the Indian housing finance market is segmented into prime (loans above Rs 35 lakh), mid-income (Rs 15–35 lakh) and low-income affordable housing (below Rs 15 lakh). Aadhar Housing has established a leading position in the affordable housing category, supported by a wide distribution network and dedicated urban and emerging verticals for growth.
Management has estimated the financing opportunity in the affordable housing space at about Rs 45 lakh crore, nearly 3.5 times higher than the current loan volume of Rs 13 lakh crore. Aadhar Housing plans to expand its branch network to more than 750 by FY28, adding 50–60 branches annually. It expects disbursement growth of 18–20 per cent and AUM growth of 20–22 per cent in the near term.
On financial performance, Aadhar Housing is targeting a return on equity (RoE) of 18 per cent and a return on assets (RoA) of 4.2–4.4 per cent. It was the only affordable HFC to achieve an RoE of 18 per cent in FY24. The company guided for credit costs within 25–27 basis points (bps) in FY26 and aims to reduce its gross non-performing loans (GNPL) to around 1.1 per cent from the current 1.34 per cent.
Exposure to the southern region is about 30 per cent of its branch network, with Tamil Nadu accounting for 10 per cent and Karnataka 6 per cent, as of June 2025. Loans against property (LAP) form around 27 per cent of its AUM. ICICI Securities noted that bounce rates remain within historical ranges without showing early stress signals.