Chola Securities
Target: ₹600
Current Market Price (CMP): ₹496.80
Aadhar Housing Finance Limited, founded in 1990 and based in Mumbai, is recognized as one of India’s foremost housing finance companies, primarily serving the low-income housing market. The company started as Vysya Bank Housing Finance Limited in Bengaluru and has experienced several transformations, including a merger with Aadhar Housing Finance Private Limited in 2017, leading to its public listing in May 2024.
The investment case for Aadhar Housing Finance is robust, bolstered by a strong growth trajectory, stable asset quality, and effective risk management practices. In its recent financial results for the third quarter and the first nine months of FY26, the company reported a 20 percent year-on-year increase in assets under management (AUM), now standing at ₹28,790 crore, and disbursements up 15 percent year-on-year, totaling ₹6,469 crore. These results reaffirm the company’s full-year guidance despite facing seasonal challenges.
The projected Gross Non-Performing Assets (GNPA) rate is estimated at 1.23 percent by FY26, which reflects Aadhar’s prudent underwriting practices and effective risk management strategies. Notably, 55 percent of Aadhar’s portfolio consists of salaried customers, a demographic known for a more consistent repayment behavior compared to self-employed individuals.
Overall, Aadhar Housing Finance offers a blend of scale, geographic diversity, stable asset quality, and strong profitability, with visible growth prospects. By applying a conservative approach and valuing the company at a price-to-book value multiple of 2.5x based on the FY28 estimated book value, Chola Securities establishes a target price of ₹600 per share within the next 15 to 18 months.
Published on April 17, 2026
