According to IDBI Capital, Aavas Financiers is a strong stock that has the potential to give an upside of 28%. The brokerage firm has maintained a “buy” rating on the company, citing several factors. Firstly, Aavas Financiers has a strong presence in the organized mortgage finance segment, with over 15,000 branches across the country. The company has a diversified customer base, with a large number of mobile vendors and artisans among its clients. IDBI Capital believes that the company’s focus on MSME (Micro, Small, and Medium Enterprises) segment will continue to drive growth. Additionally, the recent fundraising exercise by the company to increase its equity base will improve its balance sheet. The firm also appreciates the company’s robust risk management practices, which enable it to maintain a healthy asset quality. With a strong business model, strong fundamentals, and a robust risk management framework, IDBI Capital believes that Aavas Financiers has the potential to give an upside of 28% and is a “buy” for investors.
