Aavas Financiers Q1 Review - Growth Outlook Strengthens: Dolat Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Aavas Financiers Ltd. reported healthy loan growth at 24% YoY and 6% QoQ. Net interest income growth was however weaker at 20% YoY/flat QoQ. Calculated net interest margin moderated both QoQ and YoY by ~20-40 bps to 6.6%, even as reported spreads were higher QoQ. Profit after tax, up 49% YoY, benefitted from higher other income and negligible provisions. Aavas' management highlighted that the housing finance company has already hiked prime lending rate by 25 bps and is expected to announce another hike of 50 bps in August. This, along with recent rating upgrade should ensure stable net interest margins for FY23E in our view. The HFC has a higher ability versus peers to pass on rate hike, as even in the last rate down-cycle, it had passed on the benefit to borrowers..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Aavas Financiers Q1 Review - Growth Outlook Strengthens: Dolat Capital

Aavas Financiers Q1 Review - Growth Outlook Strengthens: Dolat Capital

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