ilmscore | Aadhar Housing Finance IPO Review: Apply or avoid?

Aadhar Housing Finance IPO Review: Apply or avoid?

Published: 2024-05-08
Status: Analyzed

Predictions from this Video

Total: 10
Correct: 0
Incorrect: 0
Pending: 10
Prediction
Topic
Status
The low-income housing loan industry market size in India is expected to grow at a CAGR of 8-10% between FY23 and FY26.
"CAGR growth of 8 to 10 per cent is expected between FY23 and FY26."
Indian Low-Income Housing Loan Industry
Pending
Aadhar Housing Finance plans to deepen its presence in existing states, specifically Uttar Pradesh, Rajasthan, Maharashtra, and Gujarat, focusing on Tier 3 and Tier 4 cities, instead of expanding into new states.
"we will definitely be going deeper in two states. That you know we understand at the back of our hand our birth state for example Uttar Pradesh you know we have about 64 branches there we can go deeper you know states like Rajasthan Maharashtra Gujarat these are states of high potential when you go to tier three tier four kind of location"
Aadhar Housing Finance Expansion
Pending
Aadhar Housing Finance's operating cash flows are projected to remain negative in the future.
"the company says that cash flows may be negative in the future as well."
Aadhar Housing Finance Cash Flow
Pending
ECRA predicts that an increase in the National Bank of India's borrowing costs in the current fiscal year could lead to a decline in Aadhar Housing Finance's profit margins.
"ECRA is a credit rating agency and they believe that the cost of borrowing of the National Bank of India is currently low, due to which there are chances of an increase in this fiscal year, which may lead to a drop in the company's margins."
Aadhar Housing Finance Profitability
Pending
Based on a gray market premium of ₹52 on May 5th, Aadhar Housing Finance's stock is estimated to list at ₹16.51.
"According to reports, the gray market premium of Aadhar Housing Finance is ₹52 on May 5th, meaning the stock's estimated listing price could be ₹16.51."
Aadhar Housing Finance IPO Listing Price
Pending
Aadhar Housing Finance plans to deepen its presence within existing high-potential states like Uttar Pradesh, Rajasthan, Maharashtra, and Gujarat, focusing on tier three and tier four cities, rather than expanding into new states.
"we will definitely be going deeper in two states. That you know we understand at the back of our hand our birth state for example Uttar Pradesh you know we have about 64 branches there we can go deeper you know states like Rajasthan Maharashtra Gujarat these are states of high potential when you go to tier three tier four kind of location"
AADHARHFC
Pending
Aadhar Housing Finance expects its cash flows from operating activities to remain negative in the future.
"the company says that cash flows may be negative in the future as well."
AADHARHFC
Pending
ICRA (assuming ECRA is a typo) predicts an increase in the National Bank of India's cost of borrowing this fiscal year, which could result in a drop in Aadhar Housing Finance's profit margins.
"ECRA... believe that the cost of borrowing of the National Bank of India is currently low, due to which there are chances of an increase in this fiscal year, which may lead to a drop in the company's margins."
AADHARHFC
Pending
Aadhar Housing Finance intends to allocate ₹750 crore from its IPO proceeds for future capital requirements and over 25% for general corporate purposes, including expanding its distribution network, advancing technology, and repaying debt.
"The company will use ₹750 crore for its future capital requirements. The second is for general corporate purposes in which the company will invest money on strategic initiatives like distribution network expansion, advancement of technology and repayment of debt. The company will invest more than 25% of the raised money on this."
AADHARHFC
Pending
The low-income housing loan industry in India is predicted to achieve a Compound Annual Growth Rate (CAGR) of 8-10% between FY23 and FY26.
"CAGR growth of 8 to 10 per cent is expected between FY23 and FY26."
Indian Low-Income Housing Market
Pending