Aadhar Housing Finance Ltd. Fundamental Analysis (NSE: AADHARHFC.NS)
Aadhar Housing Finance Ltd. Fundamental Analysis (NSE: AADHARHFC.NS)
Aadhar Housing Finance Ltd. (NSE: AADHARHFC.NS) shows strong financial fundamentals with a PE ratio of 17.60, profit margin of 30.16%, and ROE of 16.45%. The company generates $37.9B in annual revenue with strong year-over-year growth of 30.04%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -37.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AADHARHFC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakAADHARHFC.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAADHARHFC.NS trades at attractive valuation levels.
Growth Score
ExcellentAADHARHFC.NS delivers strong and consistent growth momentum.
Financial Health Score
WeakAADHARHFC.NS carries high financial risk with limited liquidity.
Profitability Score
ModerateAADHARHFC.NS maintains healthy but balanced margins.
Key Financial Metrics
Is AADHARHFC.NS Expensive or Cheap?
P/E Ratio
AADHARHFC.NS trades at 17.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AADHARHFC.NS's PEG of 0.93 indicates potential undervaluation.
Price to Book
The market values Aadhar Housing Finance Ltd. at 2.68 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.51 times EBITDA. This is generally considered low.
How Well Does AADHARHFC.NS Make Money?
Net Profit Margin
For every $100 in sales, Aadhar Housing Finance Ltd. keeps $30.16 as profit after all expenses.
Operating Margin
Core operations generate 39.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.45 in profit for every $100 of shareholder equity.
ROA
Aadhar Housing Finance Ltd. generates $4.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aadhar Housing Finance Ltd. generates limited operating cash flow of $-26.08B, signaling weaker underlying cash strength.
Free Cash Flow
Aadhar Housing Finance Ltd. generates weak or negative free cash flow of $-26.24B, restricting financial flexibility.
FCF Per Share
Each share generates $-60.00 in free cash annually.
FCF Yield
AADHARHFC.NS converts -12.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.49
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How AADHARHFC.NS Stacks Against Its Sector Peers
| Metric | AADHARHFC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.60 | 21.03 | Better (Cheaper) |
| ROE | 16.45% | 647.00% | Weak |
| Net Margin | 30.16% | -1591.00% (disorted) | Strong |
| Debt/Equity | 2.49 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.27 | 912.43 | Weak Liquidity |
| ROA | 4.16% | -579.00% (disorted) | Weak |
AADHARHFC.NS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aadhar Housing Finance Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
125.32%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
142.67%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
281.53%
Industry Style: Value, Dividend, Cyclical
High Growth