ICICI Securities has recommended a "BUY" for Aadhar Housing Finance with a target price of INR 550.
The company, which obtained its housing finance company license in 2010, has shown strong execution under the leadership of Executive Vice Chairman Deo Shankar Tripathi and Managing Director & CEO Rishi Anand.
Aadhar Housing Finance has achieved an 18% compound annual growth rate (CAGR) in assets under management (AUM) from FY18 to FY24, reaching INR 228 billion as of September 2024.
The company's growth has been supported by its entry into under-penetrated markets like Uttar Pradesh, Madhya Pradesh, Chhattisgarh, and Jharkhand, as well as a diversified portfolio that ensures no single state contributes more than 15% of its AUM.
Aadhar also has a wide branch network of 545 locations, which has been crucial for its expansion.
Notably, the company has reported higher spreads of around 6%, compared to 5-5.25% for its peers, which further enhances its growth prospects.