Shares of Aptus Value Housing Finance Ltd witnessed a notable surge of over 3% on November 10, following a major block deal involving approximately 7.4 million shares. This spike occurred amidst the broader Indian market’s downturn, with the Sensex dropping by 0.3%.
The company’s recent financial performance has been a key driver behind investor confidence.
Aptus Value Housing Finance India Limited reported a 20% increase in profit after tax (PAT) for the quarter ending September 30, 2023, reaching Rs 148 crore, up from Rs 123 crore in the same quarter the previous year.
Strategic initiatives such as controlled attrition, branch expansion, and a focus on Small Business Loans (SBL) have been pivotal in driving business growth. The company also witnessed a year-on-year AUM increase of 28%, underlining its robust market position.
Aptus Value Housing’s decision to raise rates by 50 basis points on September 1 led to an improved portfolio yield, although operating expenses saw an uptick due to branch expansions and strengthening of middle management.
Yes Securities, in its latest note, maintained a positive outlook for Aptus, projecting a 27.5% AUM Compound Annual Growth Rate (CAGR) and a 24% earnings CAGR over FY23-26. Analysts anticipate the company’s Return on Equity (RoE) to reach 21% by FY26, driven by structural leverage increases and consistent dividend payouts.
Market analysts are optimistic about Aptus’s growth prospects, citing its strong presence in deeper markets and focus on a customer segment with smaller ticket sizes compared to peers. The company’s diverse product mix is also seen as a key growth driver. Currently valued at 3x Price to Adjusted Book Value (PABV) and 15x Price to Earnings (PE) on FY26 estimates, Aptus is considered a top investment choice in the affordable housing sector by analysts.
This surge in Aptus Value Housing Finance’s share price, following the block deal and its strong quarterly performance, reflects growing investor confidence in the company’s business model and future prospects.
Aptus Value Housing Finance at the time of writing is trading at Rs. 303 with a marketcap of Rs. 15000 crore with a PE ratio of 27.47.
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