Aavas Financiers Limited Fundamental Analysis (BSE: AAVAS.BO)
Aavas Financiers Limited Fundamental Analysis (BSE: AAVAS.BO)
Aavas Financiers Limited (BSE: AAVAS.BO) shows strong financial fundamentals with a PE ratio of 15.63, profit margin of 26.24%, and ROE of 14.00%. The company generates $26.2B in annual revenue with strong year-over-year growth of 18.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAVAS.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakAAVAS.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAAVAS.BO trades at attractive valuation levels.
Growth Score
ExcellentAAVAS.BO delivers strong and consistent growth momentum.
Financial Health Score
WeakAAVAS.BO carries high financial risk with limited liquidity.
Profitability Score
WeakAAVAS.BO struggles to sustain strong margins.
Key Financial Metrics
Is AAVAS.BO Expensive or Cheap?
P/E Ratio
AAVAS.BO trades at 15.63 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AAVAS.BO's PEG of 0.93 indicates potential undervaluation.
Price to Book
The market values Aavas Financiers Limited at 2.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.71 times EBITDA. This is generally considered low.
How Well Does AAVAS.BO Make Money?
Net Profit Margin
For every $100 in sales, Aavas Financiers Limited keeps $26.24 as profit after all expenses.
Operating Margin
Core operations generate 29.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.00 in profit for every $100 of shareholder equity.
ROA
Aavas Financiers Limited generates $3.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aavas Financiers Limited generates limited operating cash flow of $-1.27B, signaling weaker underlying cash strength.
Free Cash Flow
Aavas Financiers Limited generates weak or negative free cash flow of $-1.42B, restricting financial flexibility.
FCF Per Share
Each share generates $-17.90 in free cash annually.
FCF Yield
AAVAS.BO converts -1.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AAVAS.BO Stacks Against Its Sector Peers
| Metric | AAVAS.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.63 | 21.03 | Better (Cheaper) |
| ROE | 14.00% | 647.00% | Weak |
| Net Margin | 26.24% | -1591.00% (disorted) | Strong |
| Debt/Equity | 3.08 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.00 | 912.43 | Weak Liquidity |
| ROA | 3.15% | -579.00% (disorted) | Weak |
AAVAS.BO 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 Aavas Financiers Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
152.99%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
125.96%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
98.70%
Industry Style: Value, Dividend, Cyclical
High Growth