Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Mortgage Finance

Aavas Financiers Limited provides housing finance services to customers belonging to low- and middle-income self-employed customers in semi-urban and rural areas in India. The company offers home loans for flats, houses, and bungalows, as well as resale properties; home construction loans for self-construction of residential house; and home improvement loans, including loans for tiling or flooring, plaster, painting, etc. It also provides loans against property; home equity loan; and micro, small, and medium enterprise loans, as well as home loan balance transfer, and Small Ticket Size loan. The company was formerly known as AU Housing Finance Limited and changed its name to Aavas Financiers Limited in May 2017. Aavas Financiers Limited was incorporated in 2011 and is based in Jaipur, India.

Revenue projections:

Revenue projections for AAVAS
Revenue projections for AAVAS

Investors may react cautiously to news that AAVAS's revenues are forecasted to be lower than last year's. Such declines are likely to have a negative effect on the company's bottom line, which can lead to concerns about profitability and hinder investor confidence in the company's future performance.

Financial Ratios:

currentRatio 3644.39100
forwardPE 16.84580
debtToEquity 319.17000
earningsGrowth 0.07200
revenueGrowth 0.13900
grossMargins 0.99371
operatingMargins 0.52922
trailingEps 71.98000
forwardEps 75.04000

AAVAS's current ratio of 3644.391 indicates strong liquidity, meaning the company can comfortably meet its short-term debt obligations. This financial position reflects AAVAS's ability to use its cash reserves and current assets to cover liabilities without facing any cash flow issues.
Aavas Financiers Limited's Forward PE is well-positioned, indicating the stock price is favorable compared to its earnings. This suggests the stock is not overpriced and offers room for growth, making it an attractive option for investors looking for future value appreciation.
Aavas Financiers Limited's high debt-to-equity ratio shows the company is significantly leveraged, relying heavily on debt financing. This raises the potential for increased financial risk, especially if the company's earnings or cash flow are negatively impacted.
Positive gross and operating margins for AAVAS suggest that the company is operating profitably. These margins highlight AAVAS's efficiency in managing costs while maintaining healthy revenue streams, contributing to its overall financial strength.
AAVAS's forward EPS is greater than its trailing EPS, indicating that the company is expected to deliver higher profitability this year. This suggests that AAVAS is projected to improve its earnings, reflecting positive growth compared to last year's financial performance.

Price projections:

Price projections for AAVAS
Price projections for AAVAS

The price of AAVAS has consistently remained close to the lower end of price projections. This trend may reflect uncertainty in the market regarding the company's ability to deliver on growth expectations.

Recommendation changes over time:

Recommendations trend for AAVAS
Recommendations trend for AAVAS


Aavas Financiers Limited has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see Aavas Financiers Limited as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.