Citi & Axis Securities Reaffirm Strong Growth Outlook for Aptus Value Housing

Citi Research Maintains ‘Neutral’ Rating with Target Price of ₹358 (Implied Return: 12%)

• Q4FY25 spreads sustained at 8.71%, beating expectations.
• Disbursements rose 14% QoQ, AUM growth at 25% YoY.
• Credit cost held steady at 30bps, with improved GS3/GS2 metrics.
• Operating expenses rose due to branch expansion and hiring, but opex/assets ratio remained manageable at 2.6%.
• Management targets ₹25,000 crore AUM by FY28E, implying over 30% CAGR.
• Earnings forecast revised upward by 3% for FY26, driven by margin resilience.

Axis Securities Reiterates ‘BUY’ Rating with Target Price of ₹400 (Implied Upside: 25%)

• Aptus is seen as a key beneficiary of the rate-cut cycle, with ~80% of its loan book on fixed rates.
• NIMs expected to stay strong at ~11.9% in FY26–27 due to repricing advantage and strategic borrowing.
• Management projects AUM CAGR of ~27% for FY25–27, aided by branch expansion, digital sourcing, and higher ATS.
• Q4FY25 PAT rose 26% YoY, supported by improved disbursements and productivity.
• Asset quality remains solid: GNPA at 1.19%, NNPA at 0.89%, collection efficiency at 101.2%.
• Aptus remains one of the most efficient and high-ROE players in the affordable housing finance space, with RoE projected to rise to 23.4% by FY27.