Aavas Financiers shares plunge 6% as MD Sushil Agarwal trims stake

Shares of Aavas Financiers fell over 6 per cent in Friday's trade as the latest shareholding pattern suggests founder, managing director and CEO Sushil Agarwal cut his stake in the NBFC to 1.55 per cent in the March quarter from 3.3 per cent in the December quarter.

As per the latest shareholding pattern, Agarwal held 12,26,986 shares in Aavas Financiers as on March 31 against 26,31,438 shares as on December 31.

Following the data, shares of Aavas Financiers declined 6.3 per cent to hit a low of Rs 1,563 on BSE. Against a two week average of 4,667 shares, a total of 25,000 shares changed hands on BSE so far.

Kotak Institutional Equities expects Aavas Financiers to report a 6 per cent year-on-year (YoY) rise in net profit at Rs 123.10 crore for the March quarter compared with Rs 115.70 crore in the year-ago quarter.

Net interest income (NII) is expected to increase 23 per cent YoY to Rs 222.70 crore from Rs 180.40 crore YoY. Net interest margin (NIM) is seen at 8.2 per cent, down 7 basis points YoY.

'Aavas may reported 8 per cent QoQ AUM growth in 4QFY23, translating to 24 per cent YoY growth (23 per cent YoY in 3QFY23). NIM will likely expand 10 bps QoQ due to sharp (50 bps) hike in lending rates in 3QFY23," Kotak Institutional Equities said.

"We expect cost-to-average AUM to remain high at 3.9 per cent (3.5-3.9 per cent in last four quarters) due to higher investments in infrastructure/IT. We model credit cost of 7 bps on the back of strong collections," it said.

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