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Aadhar Housing Finance share price jumps 8% after flat debut. Buy, sell or hold?

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Aadhar Housing Finance share price jumps 8% after flat debut. Buy, sell or hold?

Aadhar Housing Finance, a unique retail-oriented home finance company, stands out with its specialization in low-income housing. Today, its shares had a flat listing on the Indian exchanges. Aadhar Housing Finance shares were listed on BSE at 314.30 per share mark while the stock listed on NSE at 315 apiece, which was almost at par with the upper price band of 315 per equity share of the Aadhar Housing Finance IPO. However, the newly listed stock witnessed strong buying post-listing and touched intraday high of 341.95 apiece on BSE and NSE. Stock market experts believe that the newly listed stock is a good portfolio stock, and positional investors can hold the stock for the long term.

Aadhar Housing Finance share price outlook

Discussing the listing of Aadhar Housing Finance shares, Prashanth Tapse, Senior VP — Research at Mehta Equities, expressed, “Despite the subdued market conditions, Aadhar Housing Finance’s listing was slightly below street expectations. The company’s focus on the rapidly growing low-income housing segment, which is projected to be the fastest sub-segment within the housing finance industry, has garnered a decent subscription demand. With its reasonable valuations, it presents a promising long-term investment opportunity for conservative investors.”

Also Read: TBO Tek share price dips after bumper debut. Should you buy in this correction?

With a positive outlook for the affordable low-income housing segment, driven by government initiatives such as housing for all and infrastructure status for affordable housing, Aadhar Housing Finance is well-positioned for growth. Its reasonably priced ask valuations compared to industry peers, growing Gross AUM and Net Worth, stable average ticket size of loans, and increasing penetration into tier 4 and tier 5 towns all indicate sound financial health and potential for further expansion. Given the long-term optimistic sector outlook, we recommend allotting investors to “HOLD” for a long-term perspective,” a Mehta Equities expert said.

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Reiterating the company’s specialization in low-income housing, Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, stated, “Aadhar Home Finance Ltd. is a retail-oriented home finance company that excels in serving the low-income housing market. It caters to economically weaker consumers with middle-to-low incomes who require small-ticket mortgage loans. Offering a range of mortgage-related loan products, such as loans for acquiring and constructing commercial real estate, home remodelling and extension loans, and loans for purchasing and constructing residential real estate, the company is well-positioned for future growth. We advise investors to consider this potential and hold their investments for medium to long-term rewards.”

“On the financial front, Aadhar Housing Finance reported the second-highest return on equity in FY23 at 15.9%. As we advance, we expect operational performance to improve, led by the dominant low-income housing segment, low cost of borrowing, and higher return ratio among peers. We thus advise investors who have received allotment to hold shares from a medium to long-term perspective,” said Shreyansh Shah, Research Analyst at StoxBox.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 15 May 2024, 11:53 AM IST

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Finance

SRG Housing Finance Q4 Results Live : profit rise by 45.65% YOY

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SRG Housing Finance Q4 Results Live : profit rise by 45.65% YOY

SRG Housing Finance Q4 Results Live : SRG Housing Finance announced their Q4 results on 23 May, 2024, showcasing a significant growth in their financial performance.

The company reported a 38.64% increase in revenue and a 45.65% rise in profit year-over-year.

Quarter-on-quarter comparison also revealed positive growth, with revenue growing by 13.89% and profit increasing by 14.46%.

However, the Selling, general & administrative expenses saw a noticeable increase, rising by 8.82% sequentially and 43.86% year-on-year.

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Similarly, the operating income also showed a positive trend, with an 18.1% increase quarter-on-quarter and a 42.73% rise year-on-year.

The Earnings Per Share (EPS) for Q4 stood at 4.72, marking a 29.67% increase year-on-year.

In terms of market performance, SRG Housing Finance delivered a 2.84% return in the last week, 0.87% return in the last 6 months, and a 1.99% year-to-date return.

The company currently holds a market cap of 378.12 Cr, with a 52-week high/low of 336.75 and 230 respectively.

SRG Housing Finance Financials
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Period Q4 Q3 Q-o-Q Growth Q4 Y-o-Y Growth
Total Revenue 36.15 31.74 +13.89% 26.07 +38.64%
Selling/ General/ Admin Expenses Total 7.64 7.02 +8.82% 5.31 +43.86%
Depreciation/ Amortization 1.71 1.58 +7.86% 0.97 +76.31%
Total Operating Expense 28.79 25.51 +12.86% 20.92 +37.63%
Operating Income 7.35 6.23 +18.1% 5.15 +42.73%
Net Income Before Taxes 7.61 6.7 +13.64% 5.37 +41.65%
Net Income 6.09 5.32 +14.46% 4.18 +45.65%
Diluted Normalized EPS 4.72 4.09 +15.33% 3.64 +29.67%

FAQs

Question : What is the Q4 profit/Loss as per company?

Ans : ₹6.09Cr

Question : What is Q4 revenue?

Ans : ₹36.15Cr

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Published: 26 May 2024, 02:27 AM IST

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G7 finance ministers back plan to use Russian assets for Ukraine funding – the FT

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G7 finance ministers back plan to use Russian assets for Ukraine funding – the FT

Stock photo: Getty Images

The G7 finance ministers supported the idea of providing Ukraine with a loan secured by profits from frozen Russian assets to ensure funding for Kyiv after 2024.

Source: Financial Times, citing the draft communiqué of the ministers’ meeting, as reported by European Pravda 

The ministers’ discussions were based on a US proposal, which was circulated before the meeting in the Italian city of Stresa, to issue Ukraine a loan of about US$50 billion, to be repaid from the profits of the Russian central bank’s assets amounting to around €190 billion. 

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The ministers stated that they were “making progress” in working out options to “bring forward” the profits, according to the draft communiqué. They added that options for structuring the loan would be presented to the G7 leaders before the June summit.

They also promised to continue pressuring China to reduce industrial subsidies that they believe are driving Western competitors out of business, and stated that implementing the most significant global tax agreement in more than a century is a “top priority”.

The G7, a group of advanced economies that includes all major Western allies of Ukraine, aims to ensure funding for Kyiv in the long term, even after this year when crucial elections will take place on both sides of the Atlantic. 

According to people familiar with the negotiations, many details of the loan are yet to be agreed upon, including the amount, who will issue it, and how it will be guaranteed in case of Ukraine’s default or if the profits do not materialise. 

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One official mentioned that Europeans are particularly concerned about “fair-risk sharing”, fearing that Europe will bear the brunt of the financial and legal risks and potential retaliatory actions from Russia, as most of the assets are located on the continent.

This week, the EU officially approved a plan to use interest from frozen Russian assets, which, according to estimates, could bring up to three billion euros per year to Ukraine.

Background:

  • In February, the United States argued that G7 countries should fully seize frozen assets, but later abandoned this idea due to concerns from allies that it could set a dangerous legal precedent and prompt retaliatory measures from Russia.
  • Earlier, Minister of Foreign Affairs Dmytro Kuleba stated that Ukraine insists on the confiscation and transfer to Ukraine of all frozen assets of the Russian Federation held in the West.

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Finance

Big Players Maneuver In Global Finance And Industry

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Big Players Maneuver In Global Finance And Industry

What’s going on here?

From hostile takeovers to strategic acquisitions, major financial and industrial players are making bold moves to bolster their market positions. Spanish bank BBVA, Swiss private bank Julius Baer, and British IT services group Redcentric are all in high-stakes negotiations for potential mergers.

What does this mean?

BBVA’s €12.23 billion hostile takeover bid for Sabadell marks a major potential consolidation in the Spanish banking sector, despite opposition from Madrid. Julius Baer’s talks with EFG International highlighted competition in Swiss private banking, though discussions have ceased. In IT services, Redcentric’s negotiations with Milan-listed Wiit SpA could lead to a substantial acquisition. Additionally, private equity firm Carlyle is preparing to sell aerospace manufacturer Forgital, signaling increased activity in the aerospace sector. Also, Deutsche Bahn is advancing in the bidding process for its logistics subsidiary Schenker, with four contenders still vying for it.

Why should I care?

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For markets: Strategic consolidations and divestments.

These moves reflect broader trends of consolidation and strategic realignment across industries. BBVA’s bold bid for Sabadell and Criteria’s acquisition of a 9.4% stake in ACS for €983 million signify aggressive strategies to capitalize on market opportunities. Carlyle’s plan to sell Forgital and Saudi Aramco’s in Repsol’s renewable energy division highlight the growing focus on portfolio diversification and sustainability.

The bigger picture: Global shifts in financial and industrial landscapes.

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These developments indicate profound changes in the global financial and industrial sectors. KKR’s likely approval to acquire Telecom Italia’s fixed-line network without EU antitrust conditions signals a favorable regulatory climate for strategic deals. On the flip side, the Italian government’s decree for state broadcaster RAI to possibly merge its tower unit, RaiWay, with EI Towers shows the fluidity of managing national strategic assets. Meanwhile, Coventry Building Society’s £780 million purchase of Co-operative Bank underscores ongoing consolidation in the British banking sector.

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