Aadhar Housing Finance Limited

Financial Services — Mortgage Finance · NSE

₹447.05−₹5.00 (−1.11%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Aadhar Housing Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aadhar Housing Finance Limited, a housing finance company, engages in the housing finance business in India.

IndustryMortgage Finance

SectorFinancial Services

Employees5,430

Annual revenue₹3,387 Cr

How does it make money?

Turns over ₹3,387 Cr a year. Of every ₹100 of sales, about ₹32 reaches shareholders as profit, with ₹78 left at the operating level before interest, tax and depreciation. Each of its 5,430 employees supports ₹62.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹62.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

11 analysts covering the stock expect revenue to grow about 19.2% and earnings to grow about 22.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.2%

Est. earnings growth+22.5%

Analysts11

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +80% while net margin moved +12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+80%

Margin effect+12%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.41 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

83/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

71/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

17.4x

3Y Median

24.0x

31 monthly readings · mean 24.0x · range 17.6x–35.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 24.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 17.0x.

vs. its own history

Cheap

24.0x median over 31 months · -28%

vs. sector peers

Fair

17.0x median of 4 peers · +2%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.2x

PEG

0.66

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 74.8% to 78.2% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 239% against revenue growth of 80% — customers are taking longer to pay.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 74.8% to 78.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.7% CAGR
Latest reported year was 19.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 76%✓ 78.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 13%✓ 14.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 24.0x✓ 17.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹19,598 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.58x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹25.76

Profitable

Profitable on a per-share basis

ROE

14.5%

Moderate

Moderate capital efficiency

ROCE

12.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.56x

High

High leverage

Revenue Growth (YoY)

19.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹2,827 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

12.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

61.7%

Good

Healthy core-business profitability

Net Margin

48.2%

Good

Strong bottom-line conversion

Current Ratio

1.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

15%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

448.4 / 466.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,881 Cr	₹2,354 Cr	₹2,835 Cr	₹3,387 Cr	+21.7%
EBITDA	₹1,408 Cr	₹1,850 Cr	₹2,225 Cr	₹2,649 Cr	+23.5%
EBITDA Margin	74.8%	78.6%	78.5%	78.2%	—
PAT (Net Profit)	₹545 Cr	₹750 Cr	₹912 Cr	₹1,096 Cr	+26.2%
EPS	₹12.77	₹17.58	₹20.85	₹24.77	+24.7%
ROE	14.7%	16.8%	14.3%	14.5%	—
ROCE	10.9%	11.7%	11.3%	12.0%	—
Total Debt	₹12,150 Cr	₹13,958 Cr	₹16,322 Cr	₹18,743 Cr	+15.5%
Free Cash Flow	-₹1,166 Cr	-₹2,566 Cr	-₹3,041 Cr	-₹2,827 Cr	—

🟢 Revenue has grown at 21.7% a year over 3 years.

🟢 EBITDA has grown at 23.5% a year over 3 years.

🟢 EBITDA Margin has risen from 74.8% to 78.2% over 3 years (+3.4 pts).

🟢 PAT (Net Profit) has grown at 26.2% a year over 3 years.

🟢 EPS has grown at 24.7% a year over 3 years.

🟡 ROE has held roughly flat at 14.5% over 3 years.

🟢 ROCE has risen from 10.9% to 12.0% over 3 years (+1.2 pts).

🔴 Total Debt has grown at 15.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹27,399 Cr

Total Liabilities

₹19,858 Cr

Cash & Equivalents

₹715 Cr

Operating Cash Flow

-₹2,808 Cr

Capex

-₹19 Cr

Shareholding (proxy)

Institutional Holding

11.5%

Insider Holding

74.6%

Analyst Consensus

Recommendations

14 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹600.36

+34.3% vs CMP

Target Range

₹540 – ₹650

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 mixed5 general

Aadhar Housing Finance (NSEI:AADHARHFC) Stock Forecast & Analyst Predictions

Simply Wall Street, 06 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

AADHAR HOUSING FINANCE L Share Price - Live NSE: AADHARHFC Stock Price & Chart

Upstox, 16 Oct

Trade Spotlight: How should you trade Astral, Tega Industries, Indus Towers, Aadhar Housing Finance,...

Moneycontrol.com, 16 Oct

Aadhar Housing Finance Chairperson Raj Vikash Verma dies at 58

scanx.trade, 16 Oct

Aadhar Housing Finance Ltd. (AADHARHFC) Share Price near 52-week low as stock slips 1.12%

Univest, 29 Sept

Aadhar Housing Finance (AADHARHFC.NS) Edges Lower: Stock Holds Above Key Support at ₹444.69 - Market Profile

siam.in, 31 Aug

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑