Aavas Financiers Stock Price Analysis and Quick Research Report. Is Aavas Financiers an attractive stock to invest in?

Housing finance companies is a highly concentrated business-facing fierce competition and the industry has remained competitive for several years. The growth of the economy and also increase in the per capita income of individuals impact the housing industry as a whole.

These companies provide finance for housing in India to individuals and corporations. The housing finance companies majorly cater to low and middle-income individuals. The proportion of loans coming from housing companies is significantly increasing.

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Aavas Financiers. 

Key Financials -

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Aavas Financiers is Rs 574.1082 Cr. and the compounded growth of profit in the past 3 years is 17.1806593703466%. The PAT margin of Aavas Financiers is 24.3834%.
• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Aavas Financiers , the EPS grew by 16.9786% YOY. 

 Financial Ratios -

• Return on Equity (ROE): Aavas Financiers has a average ROE track record. The ROE of Aavas Financiers is at 14.3171% for the latest year.
• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Aavas Financiers is worth at the current levels at Rs 1635. Aavas Financiers is trading at a current P/E ratio of 28.7754 and the average historical P/E for the last 5 years was 40.3739021715532.
• P/B ratio can be one of the best metrics to value such companies. Currently, Aavas Financiers is trading at a P/B of 2.91679637639339. The average historical P/B for the last 5 years was 5.16727122944055. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

One can find all the Financial Ratios of Aavas Financiers in Ticker for free. Also, one can get the intrinsic value of Aavas Financiers by using Valuation Calculators, which are available with a Finology ONE subscription. 

Aavas Financiers FAQs

Q1. What is Aavas Financiers share price today?
Ans: The current share price of Aavas Financiers is Rs 1635.

Q2. What is the market capitalisation of Aavas Financiers?
Ans: Aavas Financiers has a market capitalisation of Rs 12942.8812155 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of Aavas Financiers?
Ans: The PE ratio of Aavas Financiers is 22.0402386007482 and the P/B ratio of Aavas Financiers is 2.91679637639339, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of Aavas Financiers share?
Ans: The 52-week high share price of Aavas Financiers is Rs 2234, and the 52-week low share price of Aavas Financiers is Rs 1516.9.

Q5. Does Aavas Financiers pay dividends?
Ans: Currently, Aavas Financiers does not pay dividends. Dividend yield of Aavas Financiers is around 0%.

Q6. What are the face value and book value of Aavas Financiers shares?
Ans: The face value of Aavas Financiers shares is Rs 10, while the book value per share of Aavas Financiers is around Rs 560.5465. Face value is the nominal value set by the company, whereas book value reflects its accounting worth. 

Q7. What are the ROE and ROCE of Aavas Financiers?
Ans: The ROE of Aavas Financiers is 14.3171% and ROCE of Aavas Financiers is 10.1474%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q8. Is Aavas Financiers a good buy for the long term?
Ans: The Aavas Financiers long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q9. Is Aavas Financiers undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the Aavas Financiers appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q10. How to check Aavas Financiers’s financials?
Ans: You can review Aavas Financiers’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.