Growth levers intact for Aavas Financiers; stock up 37% from issue price

Stock up 37% from issue price, higher valuation could cap further upside

At times when investors have turned lukewarm to non-banking housing finance stocks, Aavas Financiers has stood out. The stock which had a dismal debut on the bourses in October 2018, is now up 37 per cent, higher than its issue price.

In addition to a steady balance sheet, the company has no exposure to developers. The company focuses on retail segment in low-cost housing. Of the total assets under management (AUM) that indicates size of loan book, 75 per cent comes from pure retail home loans. Thus, the recently announced slash in goods and services tax (GST) on affordable housing from