Aptus Value Housing Finance India Ltd. is a non-banking financial company (NBFC) that primarily provides housing loans to the underserved and low-to-middle-income segments in India. Established in 2009, Aptus has carved a niche for itself in the housing finance market by focusing on affordable housing, especially in semi-urban and rural areas. Below is a financial summary of the company, detailing its performance, profitability, and other key financial metrics.
- Market Cap₹ 18,036 Cr.
- Current Price₹ 361
- High / Low₹ 392 / 277
- Stock P/E28.1
- Book Value₹ 75.5
- Dividend Yield1.25 %
- ROCe. 14.7 %
- ROE17.2 %
- Face Value₹ 2.00
- Industry PE22.6
- Promoter holding54.0 %
- Pledged percentage0.00 %
- Debt to equity1.38
- Profit Prev 12M₹ 612 Cr.
- EPS₹ 12.9
- Price to book value4.78
- EVEBITDA18.1
- Price to Earning28.1
- No. Eq. Shares49.9
- Change in Prom Hold-7.12 %
Revenue and Growth
Aptus has shown impressive growth in its revenue over the years, driven by its expanding customer base and increased loan disbursements. The company’s total income has consistently risen, with a significant portion coming from interest income on housing loans. This growth can be attributed to the rising demand for affordable housing in India, supported by government initiatives like the Pradhan Mantri Awas Yojana (PMAY), which aims to provide affordable housing to all by 2022. The company's focus on the low and middle-income segments, which are less served by traditional banks, has allowed it to tap into a large and growing market.
In the fiscal year 2022-23, Aptus reported a total income of INR 1,500 crores, marking a year-on-year increase of around 25%. This strong revenue growth is reflective of the company's robust loan book expansion and prudent risk management practices.
Profitability
Aptus has consistently maintained strong profitability metrics, underpinned by its efficient operating model and low-cost funding base. The company has a high net interest margin (NIM), which stood at around 10% in FY 2022-23. This is significantly higher than many of its peers in the housing finance sector, indicating Aptus' ability to generate substantial returns on its lending operations.
The company's profit after tax (PAT) for FY 2022-23 was approximately INR 420 crores, representing a 30% growth over the previous year. This impressive growth in profitability can be attributed to higher loan disbursements, better asset quality, and lower credit costs. Additionally, the company has been able to maintain a low cost-to-income ratio, which further enhances its profitability.
Asset Quality
Aptus has maintained a strong asset quality, which is critical for any financial institution. The company's gross non-performing assets (GNPAs) have consistently remained low, reflecting its prudent lending practices and robust credit assessment processes. As of March 31, 2023, Aptus reported a GNPA ratio of 1.2%, which is commendable given the challenges faced by the housing finance sector, particularly in the affordable segment.
The low GNPA ratio indicates that the company's borrowers have been largely resilient, even during periods of economic stress, such as the COVID-19 pandemic. Aptus' focus on secured lending, where a significant portion of its loan book is backed by property collateral, further reduces its credit risk.
Capital Adequacy and Leverage
Aptus has a strong capital position, with a capital adequacy ratio (CAR) well above the regulatory requirements. As of March 31, 2023, the company’s CAR stood at 48%, which provides a substantial cushion against potential credit losses and supports future growth. The high CAR is also indicative of Aptus' conservative approach to leverage, ensuring that it remains well-capitalized to withstand any adverse market conditions.
The company's leverage ratio is also well within comfortable limits, with a debt-to-equity ratio of around 2.5x. This balanced approach to leverage ensures that Aptus can continue to grow its loan book without compromising its financial stability.
Outlook
The outlook for Aptus Value Housing Finance India Ltd. remains positive, driven by the ongoing demand for affordable housing in India and the government's continued focus on housing for all. The company's strong financial performance, coupled with its focus on underserved segments, positions it well for sustainable growth in the coming years. Additionally, Aptus' emphasis on maintaining strong asset quality and profitability metrics should continue to support its financial health and shareholder returns.
In conclusion, Aptus Value Housing Finance India Ltd. has demonstrated robust financial performance across various metrics, including revenue growth, profitability, asset quality, and capital adequacy. The company’s strategic focus on affordable housing, coupled with its prudent risk management practices, makes it a strong player in the Indian housing finance market.
Pros
- Company has delivered good profit growth of 40.5% CAGR over last 5 year's
- Strong FII Holding more than 22%
- Strong DII Hilding more than 9%
Cons
- Stock is trading at 4.78 times its book value
- Promoter holding has decreased over last quarter: -7.12%