Politics and Government Politics and Government

Why Aadhar Housing Finance is a sound long-term bet


Published on 2024-12-17 22:40:48 - moneycontrol.com
  Print publication without navigation

  • The affordable housing finance (AHF) sector is in a sweet spot, given the high demand for small-ticket home loan (HL), low penetration, and government support. We feel that Aadhar Housing Finance (Aadhar; CMP: Rs 438; M Cap: Rs 18,872 crore; Overweight) is well poised to leverage sectoral tailwinds.

The article from Moneycontrol discusses why Aadhar Housing Finance (AHF) is considered a promising long-term investment. AHF, which focuses on the low-income housing segment, has shown robust growth in its loan book, with a significant portion of its loans directed towards the economically weaker and low-income groups. The company's strategic emphasis on this underserved market segment, coupled with its strong distribution network and deep understanding of customer needs, positions it well for future growth. Additionally, AHF's asset quality has remained stable, with low non-performing assets, reflecting prudent risk management. The article highlights that despite potential short-term economic fluctuations, the long-term demand for affordable housing in India remains strong, supported by government initiatives like the Pradhan Mantri Awas Yojana. This, along with AHF's operational efficiency and the potential for margin expansion, makes it an attractive option for investors looking at long-term capital appreciation and stability.

Read the Full moneycontrol.com Article at:
[ https://www.moneycontrol.com/news/business/earnings/why-aadhar-housing-finance-is-a-sound-long-term-bet-12892346.html ]