Tag: Aavas Financiers

IPO · Real estate · Stocks

Aptus Value Housing IPO : Subscribe or NOT?

Its real ALPHA

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Aptus Value Housing IPO– Incorporated in 2009, Aptus Value Housing is a retail focused housing finance company primarily serving low and middle income self- employed customers in the rural and semi-urban markets of India.

Business — It offers customers home loans for the purchase and self-construction of residential property, home improvement and extension loans, loans against property and business loans. It only offers loans to retail customers and does not provide any loans to builders or for commercial real estate. Its target customers are first time home buyers where the collateral is a self-occupied residential property. It provides loans with a ticket size only below ₹25 lacs

Region of operation –Company caters to 4 states namely Tamilnadu, Andhra pradesh, Telangana, Karnataka

Offer purpose —  The IPO is fresh issue of 500 cr and offer for sale by promoter. The issuance of shares is for branch expansion and general corporate purposes. It proposes to utilize the Net Proceeds from the Fresh Issue towards fully augmenting the tier I capital requirements of the company.

Risks —

Limited region of operation can pose regional risks

Loans to low and middle income groups may lead to spike in NPA with COVID-19 3rd wave risk

Strength

Good Financial ratios despite catering to low and middle income groups

One of the largest housing finance companies in South India

Highest return on assets (RoA) of 5.7% among 25% the Peer Set during FY21 and low Loan to value size helps the company further

Backed by sound promoters

Future

With affordable housing on rise in India and emergence of nuclear families present a long runway for company in short to medium term to grow the business and grab the opportunities. Expansion into new markets is also another opportunity

Valuations

Valuations are bit on higher side considering peers but look reasonable due to better finacial metrics

Should we apply?

People can subscribe for listing gains and hold longer with each quarterly review

Exit on listing if getting more than 30-40% gains

Add more if it dips below issue price keeping long term horizon mindset

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CAMS IPO crisp summary — Listed with 20% gains as shared

Happiest Minds IPO crisp summary –Listed with substantial gains as shared

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.

IPO · Stocks · Wealth creation

Home First Finance IPO : Subscribe or NOT?

Its real ALPHA2 Comments

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Home First Finance IPO– 10 yr old company promoted by private equity funds.

Business — In the affordable housing segment in 11 states with 70 branches. 80% business from 4 states including 40% from Gujarat only

Offer purpose — Offer for sale (1153cr) including fresh issue of 265 cr. for expansion and general purposes

Key domains – Affordable housing finance for construction , loans for purchasing commercial property and loans against property to both salaried and small business owners/self-employed customers

Risks —

Consistently need to remain in limelight in highly competitive industry, Key financial metrics are not great as of now

With focus on middle class and recent Covid impact , NPA will always be struggle for few quarters

Strength

Focus on growing affordable housing category for middle income and low income category which is not serviced by many big banks

Company use technology to its advantage and do fast processing of loans

Average ticket size is 10 lacs approximately which makes it target highly growing category of loans

Future

Various government initiatives such as housing for all, amongst others are likely to offer exciting growth opportunities in the coming years.

Last three years CAGR is 60% plus although on smaller base shows future seems bright if it remains on track

Valuations

In almost all aspects except PE, Better listed options available

Should we apply?

People can avoid or subscribe only for listing gains

Recommended to sell if getting gains on listing day

One can wait to enter at low prices for investment purposes or choose peers for investment purpose during corrections

Also Read

StoveKraft IPO Crisp Summary

IRFC IPO Crisp Summary

Burger King IPO crisp Summary — Listing with huge gains as shared

UTI AMC IPO crisp Summary — Listed with loss as shared

CAMS IPO crisp summary — Listed with 20% gains as shared

Angel Broking IPO crisp summary –Listed with loss as shared

Happiest Minds IPO crisp summary –Listed with substantial gains as shared

In case you have any questions/ queries, please feel free to reach me through Contact Form

Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.

Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.