Shares of this NBFC stock jumped approximately 7 percent in Friday’s trading session after the company released robust business updates for the quarter and period of March 2024. In the last month, the company’s stock gained nearly 15 percent for its holders.
With a market capitalization of Rs 12,255.18 crores, the stocks of Aavas Financiers Limited started their trading session on Friday at Rs 1,498.95 and currently trade at Rs 1,548.55, gaining approximately 7 percent compared to the previous close of Rs 1,456.30 apiece.
Such sharp stock price movements were witnessed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), provided key business updates for the quarter and period ended March 2024.
The company’s disbursements were reported at Rs 18.9 bn, indicating a jump of around 20 percent YoY and 39 percent on a sequential basis. Moreover, the assets under management (AUM) as of 31st March 2024 rose 22 percent YoY to Rs 173 bn. The company added 21 branches in FY24 and reported a total network of 367 branches.
According to the Bulk Deal data available with the National Stock Exchange (NSE), Smallcap World Fund Inc. sold around 4.23 lakh equity shares of Aavas Financiers Limited at an average trading price of Rs 1,421.05 per share.
During the recent financial quarters, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, showed movements in opposing directions.
The former, on one end, rose from Rs 497 crores during Q2FY24 to Rs 508 crores during Q3FY24, and the latter, on the other end, dipped marginally from Rs 122 crores to Rs 117 crores keeping the timeframe the same.
In addition to the above metrics, the company’s ratio analysis portrays the return ratios showing decent movements with the return on equity (RoE) increasing from 12.65 percent during FY21-22 to 13.14 percent during FY22-23 and the return on capital employed (RoCE) moving drastically from 8.58 percent to 23.38 percent.
Founded in 2011, Aavas Financiers Limited is engaged in providing housing loans to customers belonging to the self-employed segments in the rural as well as suburban parts of India. The company’s product portfolio includes home loans, home improvement loans, land purchases and construction, MSME loans, and others.
Written by Amit Madnani
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