Aavas Financiers Limited

Margin compression: OPM declined from 77.1% (Sep 2024) to 73.85% (Jun 2026)—verify whether cost inflation, competitive pricing pressure, or mix shift is eroding margins further

Valuation at peak earnings: PE of 22.58 with 1-year return of –16.95% despite 22.8% EPS growth (₹17.59 to ₹21.6) suggests market repricing—verify if earnings growth is sustainable and justifies the multiple

Interest rate cycle sensitivity: Housing finance loan demand and spreads are structurally tied to RBI policy—verify rate trajectory expectations and refinancing spread outlook

Asset quality unknowns: Portfolio NPL rates, collection efficiency, and loan-loss provisions are not disclosed—verify credit quality trends relative to loan origination pace

Loan origination momentum: Quarterly revenue grew 12.9% YoY (₹627.56 Cr Jun 2025 → ₹708.72 Cr Jun 2026), driven by housing loan book expansion—verify if residential lending demand sustains this pace

Margin resilience: OPM stable at 73–74% (73.85% Jun 2026) enables earnings to scale proportionally with loan volume without requiring cost reduction

EPS acceleration outpacing revenue: EPS up 22.8% YoY against 12.9% revenue growth (₹17.59 to ₹21.6)—verify whether cost discipline, share buybacks, or product-mix gains drive the differential

Reinvestment capacity: Net profit of ₹171.27 Cr (Jun 2026) and ROE of 13.93% fund growth—verify if dividend policy permits sufficient retained-earnings reinvestment into loan origination