India’s Aavas Financiers rises on March-quarter profit growth

BUZZ-India’s Aavas Financiers rises on March-quarter profit growth

** Shares of Aavas Financiers AVAS.NS rise as much as 5.23% to a six-month high of 1,689.30 rupees apiece; last up 2%

** Housing finance company posts 12% year-on-year rise in consolidated net profit in March quarter

** Loan growth of 22% and disbursement growth of 19% in March quarter is encouraging, says Jefferies; raises target price to 2,000 rupees from 1,940 rupees earlier, reiterates “buy” rating

** Expects return-on-equity to improve to 16% by fiscal 2026 from 14% currently

** Says valuation of AVAS is at a discount to peers

** The trailing 12-month (TTM) price-to-earnings (P/E) ratio, a measure of valuation, of AVAS is 26.76, higher than Aptus Value Housing Finance APTS.NS, Home First Finance HOME.NS – LSEG data

** Mean recommendation of 19 analysts tracking AVAS is “buy”; median price target at 1,775 rupees – LSEG

Reporting by Bharath Rajeswaran in Bengaluru