Stock to buy: Brokerage firm IDBI Capital has initiated coverage on the Aadhar Housing Finance shares with a constructive outlook, led by its strong positioning in the affordable housing finance industry.
The brokerage firm has assigned a 'buy' rating to Aadhar Housing Finance stock, with a target price of ₹537 apiece, suggesting an upside potential of up to 20% from its last closing price of ₹449.80.
"We initiate with a BUY rating with a target price of Rs. 537, valuing the stock at 2.3x FY28E P/BV," it said in a note.
The brokerage firm expects the company's asset under management (AUM) to reach ₹50,000 crore by FY29, while return on assets (RoA) to sustain at 4.5-4.6% and return on equity (RoE) at 16-17% over the medium term.
"With a scalable distribution franchise, strong asset quality and favourable industry tailwinds, Aadhar is well positioned for sustainable earnings growth," the firm said.
It further anticipates its Gross Non-Performing Assets (GNPA) to remain in the 1.1-1.5% range, with credit cost 30-40 bps over the next three years.
IDBI Capital further explained that the growth expectation is anchored in structural demand within the low-income housing segment, calibrated expansion into emerging and relatively low-competition geographies, disciplined portfolio construction, and a scalable branch-led operating framework.
Aadhar Housing Finance Q3 results 2026
Aadhar Housing Finance reported a 17.49% increase in its consolidated net profit for the quarter ended December 31, 2025. Profit after tax (PAT) rose to ₹281.21 crore in Q3 FY26, compared with ₹239.34 crore in the same period last year, according to a BSE filing.
The company's total consolidated income for the quarter climbed 18.32% to ₹943.77 crore, up from ₹797.64 crore a year ago.
For the nine months ended December 31, 2025, assets under management (AUM) stood at ₹28,789.96 crore, while disbursements reached ₹6,469.08 crore. The average cost of borrowing was 8.01%, and the loan spread was 5.84%.
The cost-to-income ratio came in at 35.40%. Gross NPAs as a proportion of AUM were 1.38%, while net NPAs stood at 1.01%. Net worth was reported at ₹7,185.24 crore.
Aadhar Housing Finance share price trend
Aadhar Housing Finance share price fell marginally on Wednesday, trading 0.47% lower at ₹446.75 apiece despite the stock market rally.
The stock has largely remained under pressure in the near term as it has shed 5.12% in a week and 2.57% in a month. Furthermore, Aadhar Housing Finance share price has fallen 7.11% on a year-to-date (YTD) basis, but has gained 5% in a year.
Aadhar Housing Finance shares, which made their stock market debut on May 15, 2024, have surged nearly 29% from their listing price of ₹315 per share.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.