AAVAS Financiers (AAVAS IN) – Management Meet Update – Picking up the slack in disbursements – BUY
Published on 27 Mar 2026
Over the past three years, AAVAS has faced management changes, promoter stake sale, and regulatory headwinds, which have now largely subsided. Expect disbursements to pick up driven by branch expansion, CSC scale-up and RRO model. Company expects AUM growth of 18%/ 20% in FY27/ FY28E; we build 17%/ 18% as execution in non-RJ markets is key. Potential credit rating upgrade by July-26 is likely to support NIMs. Opex is expected to be elevated in FY27 due to new branch additions; credit cost is expected to remain benign at 15-16bps. We roll-forward to FY28E with a TP of Rs 1,500 (1.8x FY28E P/ABV). Stock has corrected 11.5% over the past month; maintain BUY on sustainable growth and margin outlook.
