Despite being under pressure recently, Aptus Value Housing Finance India Ltd has received a ‘BUY’ recommendation from Choice Institutional Equities, which has initiated coverage on the affordable housing finance company with a target price of ₹330 per share. Against the last closing price of ₹223.30, the target indicates a potential upside of almost 48%. Including an estimated dividend yield of 2%, the expected total return stands at 50%.
The brokerage's positive outlook rests on the lender's growth prospects, technology-led operating model, strong profitability and ability to maintain relatively low credit costs. It expects Aptus to sustain annual growth of around 22% in assets under management (AUM) while delivering return on equity (RoE) above 20%.
The report stated, “We initiate coverage on APTUS with a ‘BUY’ recommendation. We value the company at 2.5x FY28E ABV (based on peer-group benchmarking for financial and operational metrics), resulting in target price of INR 330.0 per share," said the brokerage.
The housing finance stock has given weak returns to its investors in near term. It has lost 11% in 1 month, 24% in 3 months and 29% in the last 1 year.
In the long term as well, the scrip has been in the red, down 32% in the past 5 years.