Aavas Shares At Six-Month High After Q4 Profit Beat, Analysts Raise Target Price
The company's net profit rose 11.81% year-on-year to Rs 142 crore in the quarter ended March, beating Bloomberg poll estimate of Rs 125 crore.
Shares of Aavas Financiers Ltd. rose to their highest level in six months On Friday after its fourth-quarter profit beat analysts' estimate prompting various brokerages to raise the target price on the stock..
The company's net profit rose 11.81% year-on-year to Rs 142 crore in the quarter ended March, according to an exchange filing. That compares with Rs 125 crore consensus estimate of analysts polled by Bloomberg.
Aavas Financiers Q4 FY24 Key Highlights (Consolidated, YoY)
Total income up 21.33% at Rs 546 crore.
Net profit up 11.81% at Rs 142 crore . (Bloomberg estimate: Rs 125 crore).
"Aavas Financiers' 4Q FY24 PPOP/PAT was 17%/25% higher than our estimates on the back of a significant rise in other income, improvements in operating expenses, and lower-than-expected provisions," Nirmal Bang Securities Pvt. said in a note.
The brokerage has raised its target price for the stock to Rs 1,865 from Rs 1,775 earlier and maintained a 'buy' rating. "We have marginally adjusted our estimates to factor in an improvement in productivity in FY25," it said.
While the FY24 disbursement trajectory was lukewarm, the fourth quarter saw a pick-up in momentum, the brokerage said. The company remains confident of achieving 20-25% AUM growth, it said, adding, that it was building in 23% growth in FY25E.
IDBI Capital maintained a 'buy' on the stock and also raised the target price to Rs 1,880 as against Rs 1,820 earlier.
The brokerage revised estimates upwards for FY25/26E ABV by 1%/2% respectively, backed by higher AUM growth.
Shares of the company rose as much as 5.23%, the highest level since Oct. 13, 2023. They pared gains to trade 1.59% higher at 11:24 a.m., compared to a 0.18% decline in the NSE Nifty 50.
The stock has gained 2.01% year-to-date and 26.78% in the last 12 months. Total traded volume so far today was 1.01 times its 30-day average. The relative strength index was 65.9.
Of the 22 analysts tracking the company, 14 maintain a 'buy' rating, six recommend a 'hold,' and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' price target implies an upside of 9.7%.