Aptus Value Housing Finance is an RBI regulated affordable housing lender serving selfemployed, low-and-middle-income customers in semi-urban/rural South India

Target: ₹330

CMP: ₹224.65

We initiate coverage on Aptus Value Housing Finance with a ‘Buy’ recommendation. We value the company at 2.5x FY28E ABV (based on peer-group benchmarking), resulting in target price of ₹330. Aptus Value Housing leads both affordable and prime housing financiers on profitability, with estimated return on asset (RoA) of 7.8 per cent and return on equity (RoE) of 20.4/20.7 per cent for FY27E/FY28E.

It delivered over 20 per cent RoE in FY26 despite a ₹10 lakh ticket size and a branch-heavy model. Its 9.1 per cent spread, the widest among peers, reflects strong underwriting and cost discipline. Net NPA of 1.3 per cent is among the highest in the peer set, but we expect it to stabilise on improving collections and about 40 per cent LTV.

Key risks: Slower-than-expected branch ramp-up, higher delinquencies in the SBL and Karnataka books, yield pressure from rising competition and lower assignment income could weigh on earnings and valuation.

Aptus Value Housing Finance is an RBI regulated affordable housing lender serving selfemployed, low-and-middle-income customers in semi-urban/rural South India. Its major product offering includes home loans, LAP and small business loans. As of Q1 FY27, it operates 372 branches with AUM of about ₹13,700 crore, with a core presence in Tamil Nadu, AP, Telangana, and Karnataka, now expanding into Maharashtra and Odisha.

Published on October 13, 2026