Aavas Finance is a non-banking financial company (NBFC) that provides loans to small and medium-sized enterprises (SMEs) in India.
Aavas Finance has been consistently growing its loan book, with a Compound Annual Growth Rate (CAGR) of 30% over the past three years.
The company's focus on the SME segment has helped it tap into a vast and underserved market, with over 3.7 crore SMEs in India.
Aavas Finance has established a strong presence in the rural and semi-urban areas, where it has a network of over 1,500 branches.
Investment Considerations
Aavas Finance's stock has a medium financial performance with average price momentum and valuation. The company has a high TTM EPS Growth, indicating a strong earnings potential.
The stock's price is trading at 1,698.00, with a previous close of 1,695.65. The volume is relatively high at 143,179.00, indicating significant trading activity.
Here are some key investment considerations to keep in mind:
- Average P/B ratio: The company's Price-to-Book (P/B) ratio is in the average range, indicating a fair valuation.
- Declining ROA: The Return on Assets (ROA) has been declining over the last two years, indicating inefficient use of assets to generate profits.
- Upgraded broker recommendations: The stock has seen upgraded recommendations or target prices from brokers in the past three months, indicating potential upside.
Know Before You Invest
Before you invest in a stock, it's essential to know its strengths and weaknesses. A company with high TTM EPS Growth is a good sign, as it indicates that the company is performing well financially.
The P/E Ratio is a crucial metric to consider when evaluating a stock. For example, AAVAS Financiers Ltd has a P/E Ratio of 25.20 as of January 3, 2025. This ratio can help you determine if the stock is overvalued or undervalued.
The stock's market capitalization (Mkt Cap) is another important factor to consider. AAVAS Financiers Ltd has a market capitalization of Rs. 13,470 crore. This can give you an idea of the company's size and financial stability.
The stock's price-to-book (P/B) ratio is also worth considering. If the P/B ratio is high (above 80 percentile), it may indicate that the stock is overvalued. On the other hand, a low P/B ratio (below 30 percentile) may indicate that the stock is undervalued.
Here's a summary of the key metrics to consider:
It's also essential to evaluate the stock's financial performance, including its EPS, Net Profit, and Revenue. AAVAS Financiers Ltd has shown a medium financial performance with average price momentum and valuation.
PB Ratio of Ltd
The PB ratio of AAVAS Financiers Ltd is a staggering 511.52 as of January 3, 2025. This is a crucial metric to consider when evaluating investment opportunities.
A high PB ratio like this can indicate that a company's stock price is overvalued, making it a less attractive investment option.
It's essential to keep an eye on the PB ratio of AAVAS Financiers Ltd and other companies to make informed investment decisions.
The PB ratio can be a useful tool for investors to gauge the value of a company and make comparisons with other investments.
Share Price Analysis
Let's take a closer look at the share price of AAVAS Financiers Limited. January is a month where the company has given negative returns in 3 out of 7 years.
The maximum positive change in January was 9.86% in 2022, while the average positive change is 5.71%. On the other hand, the maximum negative change was -3.64% in 2024, with an average negative change of -2.02%.
AAVAS Financiers Limited's share price is currently at 1701.05, which is up by 5.40 from its previous closing. Today's stock price has fluctuated between 1695.45 and 1719.60.
The company has achieved a return of 7.62% over the past year, with a return of 1.93% in the last month alone.
Market Sentiments
Market Sentiments are a crucial factor in determining the AAVAS Finance share price.
Investors are eagerly seeking answers to their queries about AAVAS Financiers.
Read 3 investor views to understand the community sentiments.
Share Information
The current share price of AAVAS Financiers Ltd is ₹ 1701.05 for NSE and ₹ 1703.3 for BSE as of January 3, 2025.
AAVAS Financiers Ltd has shown a significant increase in its share price over the past year, with a return of 7.62%. This indicates a steady growth in the company's value.
In the last month alone, the return has been 1.93%, showing a consistent upward trend in the company's share price.
What Is the Share?
The share price of a company can fluctuate, but it's essential to know the current price to make informed decisions. The share price of AAVAS Financiers Ltd for NSE is ₹ 1701.05.
You can check the share price on various stock exchanges, such as the BSE, where it is listed at ₹ 1703.3.
Current Share
The current share price of AAVAS Financiers Ltd is ₹ 1701.05 for NSE and ₹ 1703.3 for BSE as of January 3rd, 2025.
AAVAS Financiers Ltd has seen a significant increase in its share price over the past year, with a return of 7.62%.
In the last month alone, the return has been 1.93%, indicating a steady growth in the company's value.
The fluctuation in the stock price has been between ₹ 1695.45 and ₹ 1719.60, showing a slight variation in the market's perception of the company's worth.
As of January 3rd, 2025, the market cap of AAVAS Financiers Ltd for NSE is ₹ 1,34,74.60 Cr. and for BSE is ₹ 0.0 Cr.
The price-to-earnings (PE) ratio for AAVAS Financiers Ltd share is 25.20, indicating a moderate valuation of the company.
The price-to-book (PB) ratio for AAVAS Financiers Ltd share is 511.52, showing a high valuation of the company's assets.
Competitors
When sharing information, it's essential to be aware of your competitors. Some of the most popular platforms for sharing information include social media giants like Facebook and Twitter, which have billions of active users worldwide.
These platforms have a significant advantage in terms of reach and engagement. According to a recent study, Facebook has over 2.7 billion monthly active users, while Twitter has over 440 million active users.
However, other platforms like LinkedIn and Reddit are also gaining traction, especially among professionals and niche communities. LinkedIn has over 700 million registered users, while Reddit has over 430 million monthly active users.
These platforms offer unique features and benefits that can help you reach your target audience. For example, LinkedIn's professional networking features can help you connect with potential clients and partners, while Reddit's community-driven approach can help you engage with users who share similar interests.
Financial Performance
Aavas Financiers Limited has reported a net income of ₹625.37 crore in March 2024, a significant increase from ₹548.42 crore in March 2023.
The company's free cash flow has been negative in most quarters, with a low of ₹-1091.37 crore in March 2020 and a high of ₹-1823.28 crore in March 2024.
The current share price of Aavas Financiers is ₹1,695.65, with a 52-week high of ₹1,978.95 and a 52-week low of ₹1,307.00.
What Is the Market Cap of
The market cap of a company is a crucial metric that indicates its size and value.
For AAVAS Financiers Ltd, the market cap for NSE is ₹ 1,34,74.60 Cr. as of now.
Market capitalization can be obtained from stock exchanges like NSE and BSE.
The market cap of AAVAS Financiers Ltd for BSE is ₹ 0.0 Cr. as of now.
The market cap can fluctuate constantly due to various market factors.
As of Jan 03 2025 03:12 PM, the market cap of AAVAS Financiers Ltd for NSE is ₹ 1,34,74.60 Cr.
History & Performance
Aavas Financiers has seen its share price fluctuate over the years, with a 52 Week High of ₹1,978.95 and a 52 Week Low of ₹1,307.00.
The company's beta value of 0.77 indicates that its stock price is relatively stable and less volatile compared to the market average.
In the past year, Aavas Financiers' share price has increased by 7.92%, outperforming the market.
Here's a summary of the company's financial performance over the past few years:
The company's cash flow has been a concern, with negative cash from operations and free cash flow in most years. However, the net change in cash has been positive in some years, indicating that the company has been able to manage its cash flow to some extent.
Aavas Financiers' share price has shown a significant increase of 118.98% since its IPO, indicating a strong performance in the market.
1 Year Return for Ltd
The 1 year return for AAVAS Financiers Ltd has been 7.9%, according to the Shareholder Returns section. This is based on the company's performance over the past year.
Let's take a look at the historical stock prices for AAVAS Financiers. The 1 year change in the company's stock price has been 7.92%. This is a significant increase, but it's worth noting that the company's 3 year change has been -39.79%.
Here's a breakdown of the company's 1 year return in comparison to the industry and market:
As you can see, AAVAS underperformed the Indian Diversified Financial industry which returned 20.3% over the past year, and also underperformed the Indian Market which returned 17.4% over the past year.
P/E Ratio of Ltd
The P/E Ratio of Ltd is a crucial metric to understand a company's financial performance. As of January 3rd, 2025, AAVAS Financiers Ltd has a P/E ratio of 25.20, which indicates its stock price is 25.20 times its earnings.
This ratio can give you an idea of whether the company's stock is overvalued or undervalued. For instance, a high P/E ratio might suggest that investors are expecting high growth from the company, while a low P/E ratio could indicate that investors are skeptical about its future prospects.
AAVAS Financiers Ltd's P/E ratio is a specific number, 25.20, which can be compared to industry averages or other companies in the same sector. This comparison can help you make informed decisions about investing in the company.
A P/E ratio of 25.20 is relatively high, which might indicate that investors are optimistic about the company's future growth prospects.
Share Details
The current share price of AAVAS Financiers Ltd is ₹ 1701.05 on the NSE.
This price is an increase of 5.40 from its previous closing, indicating a positive trend.
The stock has fluctuated between ₹ 1695.45 and ₹ 1719.60, showing some volatility in the market.
Over the past year, AAVAS Financiers Ltd has achieved a return of 7.62%, which is a notable gain.
In the last month alone, the return has been 1.93%, demonstrating a steady growth.
The share price is also listed on the BSE at ₹ 1703.3, as of January 3, 2025, at 3:12 PM.
Frequently Asked Questions
Is Aavas financiers a good stock to buy?
Aavas Financiers appears to be undervalued, making it a potentially attractive investment opportunity for those looking to buy stocks. However, it's essential to conduct thorough research and consider various factors before making an investment decision.
What is the price target for AAVAS Finance in 2025?
The estimated price target for AAVAS Finance is between 1,487.00 INR and 2,316.00 INR, with a predicted average of 1,952.30 INR. AAVAS Finance's stock price is expected to fluctuate within this range.
What is the target price of AAVAS?
The target price of AAVAS is 1983.75, representing a 19.39% upside from its current price. This estimate is based on a consensus of 12 reports from 4 analysts.
What is the growth potential of Aavas financiers?
Aavas Financiers is expected to experience significant growth, with projected annual earnings and revenue increases of 20.4% and 19.5% respectively. This growth potential is driven by a forecasted 20% annual increase in earnings per share (EPS) and a return on equity of 15.8% in 3 years.
Sources
- https://www.moneycontrol.com/india/stockpricequote/finance-general/aavasfinanciers/AF17
- https://www.bajajbroking.in/stock/aavas-financiers-limited-share-price
- https://simplywall.st/stocks/in/diversified-financials/nse-aavas/aavas-financiers-shares
- https://www.equitypandit.com/historical-data/AAVAS
- https://trendlyne.com/research-reports/stock/106807/AAVAS/aavas-financiers-ltd/
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