ECONOMY

Aavas Financiers Q4 Review – Resilience Instils Confidence; Deserves Premium: ICICI Securities

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.

Aavas Financiers Ltd.’s FY21 performance demonstrated resilient and best-in-class portfolio quality as indicated by stage-III assets at 0.98%, 60 basis points credit cost, 1+ days past due pool at 6.4%, and zero restructuring.

Despite running tight filters in self-employed and loan against property segments, disbursements were down only 10% in FY21 while assets under management growth was more than 20%.

Investing into franchise (adding branches and employees) during a challenging macro instills our confidence in its ability to sustain 25% AUM growth in FY23E and beyond.

Core spreads improved through FY21 and can be maintained.

Click on the attachment to read the full report:

ICICI Securities Aavas Q4FY21 Results Review .pdf

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