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 be wary of AAVAS as its revenues are expected to fall below the prior year's levels. A revenue decrease often leads to concerns about profitability, as it is likely to affect the company's bottom line, prompting investors to take a more cautious approach.

Financial Ratios:

currentRatio 3644.391000
forwardPE 16.884115
debtToEquity 319.170000
earningsGrowth 0.072000
revenueGrowth 0.139000
grossMargins 0.993710
operatingMargins 0.529220
trailingEps 72.000000
forwardEps 75.040000

The current ratio for AAVAS is 3644.391, indicating that the company can service its short-term debt using available cash and assets. This suggests AAVAS has strong liquidity, with more than enough resources to meet its immediate financial commitments.
AAVAS's Forward PE being in a reasonable range suggests the stock is fairly priced based on its earnings. The stock isn't overpriced, leaving room for growth, making it an attractive investment for those seeking opportunities for future value appreciation.
AAVAS's high debt-to-equity ratio signals significant reliance on debt to finance its operations. This heavy leverage can increase financial risk, especially if the company faces a decline in revenue or struggles to meet its debt obligations.
AAVAS's positive gross and operating margins suggest the company is performing profitably. These margins reflect efficient cost management and strong revenue generation, signaling healthy financial performance and operational effectiveness.
Aavas Financiers Limited's forward EPS is higher than its trailing EPS, suggesting the company is expected to improve its profitability this financial year. This reflects growing confidence in Aavas Financiers Limited's earnings potential, with forecasts indicating better financial performance than in the prior year.

Price projections:

Price projections for AAVAS
Price projections for AAVAS

AAVAS's stock price has consistently been near the lower edge of expected values, indicating potential struggles in meeting growth projections. This trend may reflect a cautious market sentiment toward the company.

Recommendation changes over time:

Recommendations trend for AAVAS
Recommendations trend for AAVAS


AAVAS has garnered a buy bias from analysts recently, suggesting the stock is a good investment opportunity. This may lead to increased investor interest, as AAVAS is seen as a reliable place to park money for those looking to benefit from potential market gains and company growth.