Shares of Aptus Value Housing Finance slumped 9.4% on Wednesday’s intraday trades to reach an intraday low of ₹ 241.10 apiece on the National Stock Exchange (NSE) after large deals took place on the counter. At 03:17 PM, its shares were trading at ₹ 243.35 apiece, down 8.58%.
Aptus Value Housing Finance India is a Home Loan Company. It was formed to address the housing finance needs of self-employed, low and middle-income families primarily from semi-urban and rural areas. The company targets first-time home buyers where the collateral is self-occupied residential property.
According to reports, around 90.5 lakh shares of the company or 1.8 percent of its total equity exchanged hands in a large deal. The transaction took place at ₹ 250 per share, totalling to ₹ 234 crores. The deal price was at a discount of 6% as compared to Tuesday’s closing price of ₹ 266.20 apiece, triggering a sharp sell-off, according to analysts. The buyer and sellers were not immediately known.
ICICI Securities has a ‘buy’ call on the company’s shares with a target price of ₹ 325.00. This suggests an upside of 33.55% as compared to its share price of ₹ 243.35 apiece.
The brokerage believes that with a stable management team and focused approach, 100% in-house operations helping in lowering customer churn and maintaining customer quality, AUM mix driving a steady 17% yield (one of the highest within AHFC space) and tight control on asset quality, Aptus is well positioned to outpace industry AUM growth and sustain industry-leading profitability in the medium term. The company delivered 30% AUM growth and >8% RoA in FY23.
Earlier foreign brokerage Morgan Stanley initiated an ‘overweight’ rating on the stock with a price target of ₹ 325 per share. It said that the company has significant opportunities outside the top four cities, especially where the disbursal size is less than ₹ 25 lakhs. Moreover, the report stated that the sector is a niche, under-penetrated has a secular growth outlook and is ESG positive.
With a market capitalization of ₹ 13,259 crores, Aptus is a small-cap company. It has an ideal return on equity of 16.08% and a dividend yield of 1.50%. The company’s promoters hold a 62.20% stake in it, followed by retail investors with 22.53%, foreign institutions with 14.06% and mutual funds with 1.21%.
Written By Simran Bafna
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