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

Aavas Financiers Limited's revenue projections indicate a decrease from the prior year, which may make investors hesitant. A revenue decline could harm the company's bottom line, prompting investors to be more careful, as lower earnings often signal potential issues with profitability and future performance.

Financial Ratios:

currentRatio 3644.39100
forwardPE 18.40478
debtToEquity 319.17000
earningsGrowth 0.07200
revenueGrowth 0.13900
grossMargins 0.99371
operatingMargins 0.52922
trailingEps 72.04000
forwardEps 75.04000

AAVAS's current ratio, being 3644.391, demonstrates that the company has the liquidity necessary to service its short-term debt. With strong cash reserves and current assets, AAVAS is well-equipped to meet its immediate financial obligations without any difficulties.
AAVAS's Forward PE ratio is in a good range, reflecting a reasonable balance between stock price and earnings. The stock is not overpriced, leaving room for growth, which suggests potential for investors looking to capitalize on future value appreciation.
AAVAS's elevated debt-to-equity ratio suggests the company is highly leveraged, meaning it has significant debt compared to equity. This can be risky, particularly if AAVAS's cash flow or profits decrease, making it harder to meet debt obligations.
With positive gross and operating margins, AAVAS demonstrates strong profitability. This reflects the company's ability to manage costs and maintain healthy profits, showcasing effective operational efficiency and financial stability.
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

The price of AAVAS has remained consistently close to the lower limit of projections. This ongoing pattern raises concerns about the stock's performance and may reflect market hesitance regarding the company's growth prospects.

Recommendation changes over time:

Recommendations trend for AAVAS
Recommendations trend for AAVAS


Analysts' buy bias toward AAVAS suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, AAVAS is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.