Aadhar Housing Finance shares, which made their stock market debut on May 15, 2024, have surged nearly 29% from their listing price of ₹315 per share.AI Quick ReadStock to buy: Brokerage firm IDBI Capital has initiated coverage on the Aadhar Housing Finance shares with a constructive outlook, led by its strong positioning in the affordable housing finance industry.
The brokerage firm has assigned a ‘buy’ rating to Aadhar Housing Finance stock, with a target price of ₹537 apiece, suggesting an upside potential of up to 20% from its last closing price of ₹449.80.
“We initiate with a BUY rating with a target price of Rs. 537, valuing the stock at 2.3x FY28E P/BV,” it said in a note.
The brokerage firm expects the company's asset under management (AUM) to reach ₹50,000 crore by FY29, while return on assets (RoA) to sustain at 4.5–4.6% and return on equity (RoE) at 16–17% over the medium term.
“With a scalable distribution franchise, strong asset quality and favourable industry tailwinds, Aadhar is well positioned for sustainable earnings growth,” the firm said.
It further anticipates its Gross Non-Performing Assets (GNPA) to remain in the 1.1–1.5% range, with credit cost 30–40 bps over the next three years.
IDBI Capital further explained that the growth expectation is anchored in structural demand within the low-income housing segment, calibrated expansion into emerging and relatively low-competition geographies, disciplined portfolio construction, and a scalable branch-led operating framework.
Aadhar Housing Finance reported a 17.49% increase in its consolidated net profit for the quarter ended December 31, 2025. Profit after tax (PAT) rose to ₹281.21 crore in Q3 FY26, compared with ₹239.34 crore in the same period last year, according to a BSE filing.
The company’s total consolidated income for the quarter climbed 18.32% to ₹943.77 crore, up from ₹797.64 crore a year ago.
For the nine months ended December 31, 2025, assets under management (AUM) stood at ₹28,789.96 crore, while disbursements reached ₹6,469.08 crore. The average cost of borrowing was 8.01%, and the loan spread was 5.84%.
The cost-to-income ratio came in at 35.40%. Gross NPAs as a proportion of AUM were 1.38%, while net NPAs stood at 1.01%. Net worth was reported at ₹7,185.24 crore.
Aadhar Housing Finance share price fell marginally on Wednesday, trading 0.47% lower at ₹446.75 apiece despite the stock market rally.
The stock has largely remained under pressure in the near term as it has shed 5.12% in a week and 2.57% in a month. Furthermore, Aadhar Housing Finance share price has fallen 7.11% on a year-to-date (YTD) basis, but has gained 5% in a year.
Aadhar Housing Finance shares, which made their stock market debut on May 15, 2024, have surged nearly 29% from their listing price of ₹315 per share.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.