Aptus Value Housing Finance India Ltd
NSE:APTUS
Aptus Value Housing Finance India Ltd
Aptus Value Housing Finance India Ltd. is crafted with a mission to nurture the aspirations of India's financially underserved communities, primarily in the southern region of the country. Founded in 2009 by M. Anandan, the company embarked on a journey to provide home loans, loans against property, and insurance products to those often bypassed by mainstream financial institutions. Aptus thrives on understanding the nuanced needs of self-employed individuals and small business owners, many of whom lack formal income documentation. By employing a grassroots approach, they leverage local knowledge and customer relationships to assess creditworthiness beyond conventional metrics.
The company's business model hinges on a robust underwriting process, ensuring the quality of its loan portfolio. Aptus generates revenue through interest income on loans disbursed, which is its core income stream, complemented by fee-based income from insurance distribution. The firm targets affordable housing, a sector bolstered by government incentives and a chronic demand-supply mismatch, offering opportunities for steady growth. With an efficient cost structure and careful risk assessment, Aptus maintains healthy margins while expanding its footprint. This dedicated focus on an underserved niche affords the company a competitive edge, fueling its profitability and sustainability in India’s burgeoning housing finance landscape.
Aptus Value Housing Finance India Ltd. is crafted with a mission to nurture the aspirations of India's financially underserved communities, primarily in the southern region of the country. Founded in 2009 by M. Anandan, the company embarked on a journey to provide home loans, loans against property, and insurance products to those often bypassed by mainstream financial institutions. Aptus thrives on understanding the nuanced needs of self-employed individuals and small business owners, many of whom lack formal income documentation. By employing a grassroots approach, they leverage local knowledge and customer relationships to assess creditworthiness beyond conventional metrics.
The company's business model hinges on a robust underwriting process, ensuring the quality of its loan portfolio. Aptus generates revenue through interest income on loans disbursed, which is its core income stream, complemented by fee-based income from insurance distribution. The firm targets affordable housing, a sector bolstered by government incentives and a chronic demand-supply mismatch, offering opportunities for steady growth. With an efficient cost structure and careful risk assessment, Aptus maintains healthy margins while expanding its footprint. This dedicated focus on an underserved niche affords the company a competitive edge, fueling its profitability and sustainability in India’s burgeoning housing finance landscape.
AUM Growth: Assets under management grew 21% year-on-year to INR 12,330 crores, with disbursement growth of 11% in Q3 and 9% for the first 9 months despite a pullback in small-ticket loans.
Profitability: Q3 profit rose 26% year-on-year to INR 239 crores, maintaining a strong ROE of 20.2% and ROA of 7.9%, among the highest in the sector.
Branch Expansion: Opened 35 branches in 9 months, reaching 335 total, with plans to open 40 this year and accelerate to 60–70 next year, especially in new states like Maharashtra and Odisha.
Stable Asset Quality: Gross NPA stood at 1.56% and net NPA at 1.18%. Slight uptick in delinquencies is attributed to seasonal and festive effects and some stress in the SME portfolio, but management remains confident in control measures.
Yield and Spreads: Spreads improved to 8.9% due to a decrease in cost of funds to 8.3%. Lending rates for incremental home loans were reduced by 50–75 bps, but overall yield impact is minimal.
Guidance & Outlook: Management reiterated AUM growth guidance of 22%–24%, with credit costs expected to remain at 0.5%. Achieving the INR 25,000 crore AUM target may be delayed by a quarter or two.
