Aptus Value Housing Finance India Ltd specializes in catering to the housing finance requirements of self-employed individuals and low to middle-income families, particularly focusing on semi-urban and rural regions. With a primary focus on first-time homebuyers, the company operates by offering loans where the self-occupied residential property serves as collateral.
In this article, we delve into an in-depth analysis of Aptus Value Housing Finance, exploring its financial performance, market dynamics, asset quality, and strategic initiatives, shedding light on its role within the housing finance sector.
About Aptus Value Housing Finance India
Aptus Value Housing Finance (AVHF) stands as a retail-focused housing finance company, specializing in serving low and middle-income customers, predominantly excluding loans for builders or commercial real estate. With a keen focus on first-time homebuyers and using self-occupied residential properties as collateral, the company targets primarily self-employed individuals, particularly those with limited access to traditional bank funding. AVHF’s in-house operations cover all lending aspects, promoting direct customer interaction and risk minimization. Geographically concentrated in South India, AVHF has expanded its network beyond Tamil Nadu, showing a funding profile diversified across various sources.
The recent equity infusion of Rs. 500 Cr through an IPO has propelled its market cap to ₹14,975 Cr, with a current price of ₹300 as of November 10, 2023. Looking forward, the company aims at market penetration in existing and new regions, eyeing expansion into Odisha, Maharashtra, and Chhattisgarh.
Key Highlights from Aptus Value Housing Finance Q2 Results
- Profitability: The company’s Profit After Tax (PAT) saw an 11% Year-on-Year increase, reaching Rs 119 crore compared to Rs 107 crore in the previous year.
- Financials: Total income surged by 16.5%, hitting Rs 276 crore, indicating a healthy financial performance.
- Market Response: The share price experienced volatility post-results, dropping to an intra-day low of Rs 282.15 and then climbing to Rs 290.35 before closing 1.5% higher at Rs 290.25 on BSE.
- Expansion: Aptus expanded its reach by opening 20 new branches in the quarter, growing its network to 250 branches.
- Asset Quality: The company reported an improved gross non-performing assets ratio, down to 1.2% by September. However, the portfolio at risk for over 30 days past due (DPD) was slightly higher at 6%, despite a year-on-year improvement of 51 basis points.
- Financial Strength: Aptus showcased strong financial health with a net worth of Rs 3,540 crore and maintained healthy liquidity of Rs 974 crore. Additionally, it has undrawn sanctions of Rs 300 crore from the National Housing Bank and Rs 290 crore from various banks, indicating ample access to additional funds if needed.
Below are the trading platforms that you can use to purchase Aptus Value shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| November 2023 | ₹324.00 | ₹281.74 |
| December 2023 | ₹334.69 | ₹291.04 |
In November 2023, Aptus Value Housing Finance shares are predicted to range between ₹281.74 and ₹324.00, showing potential for growth within this period. December 2023 is projected to see an upward trend, with estimated prices varying from ₹291.04 to ₹334.69.
With a Stock P/E of 27.2, the market outlook suggests a positive trajectory for the company’s shares, indicating potential for an increase in value by the year’s end. Investors might anticipate a bullish trend based on these estimations, showcasing a favorable outlook for Aptus Value Housing Finance in the coming months.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹341.52 | ₹296.98 |
| February 2024 | ₹348.49 | ₹303.04 |
| March 2024 | ₹355.60 | ₹309.22 |
| April 2024 | ₹345.25 | ₹300.21 |
| May 2024 | ₹340.14 | ₹295.78 |
| June 2024 | ₹352.39 | ₹306.43 |
| July 2024 | ₹348.87 | ₹303.36 |
| August 2024 | ₹362.82 | ₹315.50 |
| September 2024 | ₹377.33 | ₹328.12 |
| October 2024 | ₹369.93 | ₹321.68 |
| November 2024 | ₹381.03 | ₹331.33 |
| December 2024 | ₹390.56 | ₹339.62 |
Aptus Value Housing Finance’s projected share prices for 2024 indicate a generally upward trend, suggesting a promising outlook for investors. The estimates showcase a steady climb over the months, with prices forecasted to range between ₹296.98 and ₹341.52 in January, reaching highs of ₹390.56 and lows of ₹339.62 by December.
This gradual increase signifies a consistent growth trajectory throughout the year, with occasional fluctuations but an overall positive trend. Such predictions could instill investor confidence, depicting a favorable investment landscape for Aptus Value Housing Finance throughout 2024.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹398.37 | ₹306.44 |
| February 2025 | ₹408.58 | ₹314.30 |
| March 2025 | ₹424.52 | ₹326.55 |
| April 2025 | ₹416.20 | ₹320.15 |
| May 2025 | ₹404.07 | ₹310.83 |
| June 2025 | ₹422.26 | ₹324.81 |
| July 2025 | ₹413.98 | ₹318.44 |
| August 2025 | ₹426.78 | ₹328.29 |
| September 2025 | ₹441.72 | ₹339.78 |
| October 2025 | ₹453.20 | ₹348.62 |
| November 2025 | ₹464.53 | ₹357.33 |
| December 2025 | ₹476.15 | ₹366.27 |
Anticipated for 2025, Aptus Value Housing Finance’s shares depict a consistent upward trend, showcasing a positive investment landscape. January’s projected range of ₹306.44 to ₹398.37 sets the tone for a promising year, culminating in a December forecast ranging between ₹366.27 and ₹476.15.
This projected growth aligns with the company’s robust financial indicators observed in FY22, such as an 81% capital adequacy ratio, an AUM of 5,180 crores, a mere 1% GNPA ratio, and a healthy net interest margin of around 14%. These financial metrics not only highlight the company’s stable financial footing but also reinforce its capacity to navigate market shifts, fostering investor confidence in its long-term growth potential. With financial strength aligning with positive share price forecasts, Aptus Value Housing Finance appears set for a prosperous trajectory in 2025.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹499.95 | ₹349.97 |
| 2027 | ₹549.95 | ₹384.96 |
| 2028 | ₹769.93 | ₹384.96 |
| 2029 | ₹666.60 | ₹333.30 |
| 2030 | ₹866.59 | ₹606.61 |
Aptus Value Housing Finance’s projected share prices from 2026 to 2030 outline a significant growth trajectory, indicating a robust outlook for investors. The estimations suggest a consistent upward trend, with prices anticipated to range from ₹349.97 to ₹499.95 in 2026, climbing to ₹384.96 to ₹549.95 in 2027.
The subsequent years display substantial growth potential, with 2028 marking an even more remarkable surge, varying from ₹384.96 to an impressive ₹769.93. 2029 indicates a range between ₹333.30 and ₹666.60, while 2030 forecasts a considerable leap to ₹606.61 to a high of ₹866.59.
This optimistic projection aligns with Aptus Value Housing Finance’s strong historical performance and financial stability, reinforcing the company’s potential for long-term growth. With such encouraging estimations, the company appears poised for a substantial and sustained upward trajectory over the upcoming years, presenting an appealing prospect for investors seeking growth opportunities.
Aptus Value Financial Condition: Last 5 Years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales | 325 | 500 | 640 | 815 | 1093 |
| Expenses | 67 | 86 | 101 | 144 | 191 |
| Operating Profit | 258 | 414 | 539 | 670 | 902 |
| Other Income | 13 | 23 | 19 | 26 | 36 |
| Interest | 115 | 185 | 207 | 209 | 277 |
| Depreciation | 3 | 6 | 6 | 7 | 7 |
| Profit Before Tax | 153 | 247 | 345 | 480 | 654 |
| Net Profit | 112 | 211 | 267 | 370 | 503 |
| EPS in Rs | 14.18 | 22.74 | 28.77 | 7.45 | 10.10 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 20% |
Over the last five years, Aptus Value’s financial performance reflects consistent growth. Sales figures have notably surged from 325 crores in 2019 to 1093 crores in 2023, with operating profit following a similar upward trajectory, reaching 902 crores by 2023. Net profit also displayed steady growth, rising from 112 crores in 2019 to 503 crores in 2023.
However, the EPS experienced a slight fluctuation, dropping from 28.77 in 2021 to 7.45 in 2022, then rebounding to 10.10 in 2023. Despite this, the company has exhibited an impressive compounded profit growth of 50% over the last five years, indicative of its strong financial progress and resilience in the market.
YES Securities, in its research report dated July 4, 2023, has passionately advocated a “buy” rating for Aptus Value Housing Finance, setting an attractive target price of Rs 350 for the stock.
FAQs
What is Aptus Value Housing Finance’s current market cap?
Aptus Value Housing Finance’s current market cap stands at ₹14,975 Crores.
The current price of Aptus Value Housing Finance shares as of November 10th is ₹300.
The projected share price target for Aptus Value in 2025 ranges from ₹306.44 to ₹476.15.
The projected share price target for Aptus Value in 2030 varies from ₹349.97 to ₹866.59.
What is the company’s current Price/Earnings (P/E) ratio?
The current P/E ratio for Aptus Value stands at 27.2.
What is the dividend payout percentage of Aptus Value Housing Finance?
The company’s dividend payout percentage is currently at 20%.
How has Aptus Value’s sales performance evolved over the last five years?
Aptus Value’s sales escalated from 325 crores in 2019 to 1093 crores in 2023, indicating consistent growth.
What is the growth rate in EPS over the last five years?
The company witnessed varied EPS, dropping from 28.77 in 2021 to 7.45 in 2022 and rising to 10.10 in 2023.
Has the company consistently paid dividends in recent years?
Aptus Value had a 0% dividend payout until 2023 when it showed a 20% dividend payout.
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Striking a Balance: Evaluating Aptus Value Housing Finance’s Potential and Pitfalls
Aptus Value Housing Finance stands as a pivotal player in the realm of housing finance, addressing the specific needs of self-employed individuals and low to middle-income families, particularly in semi-urban and rural landscapes. The company’s dedicated focus on first-time homebuyers, expansion strategies, and solid financial performance signify a promising trajectory for growth. However, amid these promising aspects, certain concerns emerge. While Aptus has exhibited remarkable profit growth, boasting a 49.8% Compound Annual Growth Rate (CAGR) over the last five years, the stock is trading at a notable premium, marked at 4.23 times its book value. This premium valuation prompts a cautious examination, highlighting potential overvaluation concerns in the market. Furthermore, observations indicating the potential capitalization of interest costs introduce a layer of ambiguity, possibly impacting the transparency of the company’s financial standing.
These contrasting signals prompt a nuanced approach for potential investors. While the company showcases significant growth potential and a strategic market foothold, the premium valuation and potential financial practices warrant a careful assessment, emphasizing the need for a comprehensive evaluation of Aptus Value Housing Finance before considering investment decisions.
What did we learn?
- 1 About Aptus Value Housing Finance India
- 2 Key Highlights from Aptus Value Housing Finance Q2 Results
- 3 How to Purchase Aptus Value Shares?
- 4 Aptus Value Share Price Target: 2023 To 2030
- 5 Aptus Value Financial Condition: Last 5 Years
- 6 Yes Securities On Aptus Value Share Price Target
- 7 FAQs
- 7.1 What is Aptus Value Housing Finance’s current market cap?
- 7.2 What is the current share price target recommended by YES Securities?
- 7.3 What is the projected share price target for Aptus Value Housing Finance in 2025?
- 7.4 What is the projected share price target for Aptus Value Housing Finance in 2030?
- 7.5 What is the company’s current Price/Earnings (P/E) ratio?
- 7.6 What is the dividend payout percentage of Aptus Value Housing Finance?
- 7.7 How has Aptus Value’s sales performance evolved over the last five years?
- 7.8 What is the growth rate in EPS over the last five years?
- 7.9 Has the company consistently paid dividends in recent years?
- 8 Striking a Balance: Evaluating Aptus Value Housing Finance’s Potential and Pitfalls
