Feb'25 View on Aptus Value Housing Finance India Ltd

Aptus Value Housing Finance India Ltd is a Home Loan Company. Aptus has been formed to primarily address the housing finance needs of self-employed, low and middle income families primarily from semi-urban and rural areas. Company targets first-time home buyers where collateral is self- occupied residential property. After making a high above 400, the stock corrected to 270 levels and now at 300 near its 20and 50EMA levels and once it cross 316 which is its 200EMA will surely target 370 supported by following facts. • Aptus reported PAT of Rs 190 cr in Q3FY25, up 21% yoy and in line with our estimates. • Net Interest Income (NII) growth at 21% yoy (up 5% qoq and aligned to estimates) was driven by strong 27% Asset under management (AUM) growth. • Collection efficiency inched up to 99.4% in Q3FY25 from 99.3% in Q2FY25 • Gross stage-2 ratio was down 6 bps qoq at 4.9% and gross stage-3 ratio was flat at 1.3%. • Q3FY25 was a stable quarter for Aptus on loan growth and Net Interest Margin (NIM), with a marginal inch-up in credit costs. • The company has steered well against the backdrop of risks elsewhere in the sector. • We remain watchful and continue to build inch-up in credit costs and moderating yet healthy RoA/RoEs.