BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Incorporated in FY10, Aptus Value Housing Finance Ltd.’s strength lies in underwriting of informal segment in tier-II/III cities, aiding industry best margins. This, along with the housing finance companies’ lean cost structure and strong underwriting aid return on asset of over 6% on a steady state basis (7% for nine months-FY22).
With low leverage at two-times and robust profitability, we expect consistent uptick in return on equities (at 14.5% currently) over time, with little need to raise capital for the next several years.
Overall stress metrics have held better than peers through Covid-19, with nil write-offs since inception. Improving cost of fund (recent rating upgrade) and performance consistency should continue to drive Aptus Value Housing Finance's valuations in our view.
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