Aptus Value Housing Finance India Limited — Credit Ratings, 10-03-2025: Credit Rating

Aptus Value Housing Finance India Ltd. reported strong financial growth for FY24, achieving a total income of ₹1,417 crore, up from ₹1,134 crore in FY23, reflecting a growth of 25%. The company’s profit after tax (PAT) increased to ₹612 crore, compared to ₹503 crore the previous year, contributing to an Earnings Per Share (EPS) of ₹10.1. The decrease in Net Interest Margin (NIM) from 12.20% to 11.54% is noteworthy, but operational efficiency was maintained with stable operating expenses at 2.55% of total assets.

The asset under management (AUM) reached ₹8,722 crore, fueled by a compound annual growth rate (CAGR) of 29% over four years. The healthy capital adequacy levels, with a capital adequacy ratio (CAR) of 73.03%, provide ample capacity for sustainable growth.

While the asset quality remains strong with gross non-performing assets (GNPA) at 1.07%, concerns persist regarding the seasoning of the loan portfolio and its geographical concentration, particularly in southern states. However, the company's dedicated in-house teams and robust management systems underpin its operational strength.

Investor perspective suggests a buy, driven by the company’s solid profitability, effective cost management, and future growth potential despite the inherent risks associated with its primary customer base in the informal sector. Positive market sentiment supports the continuing expansion strategy.