Aadhar Housing Finance Ltd is one of India’s leading housing finance companies focused exclusively on the low-income segment, offering home loans with an average ticket size of ₹10 lakh. Backed by strong institutional ownership and consistent growth in assets under management (AUM), the company has emerged as a key player in affordable housing finance. With healthy profitability, improving asset quality, and backing from global investors like Blackstone, Aadhar HFC presents a compelling long-term investment case—but its lack of dividends and interest rate sensitivity require careful monitoring. This article provides a fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Business: Provides home loans primarily to low-income individuals (loan size < ₹15 lakh)
Geography: Pan-India presence with focus on Tier-2/3 cities
Ownership: Promoter holding at 75.19%; backed by Blackstone Group (via promoter entities)
Listed: Yes – on BSE (543782) and NSE (AADHARHFC) since December 2023
Clarifications:
What is the promoter holding?75.19% – indicating strong promoter control.
What was the IPO open price? The IPO opened at ₹385 per share in December 2023.
What is the current interest rate (2026)? As of January 2026, Aadhar HFC’s retail lending rate starts from 8.50% p.a., with floating rates linked to RPLR (Reduced Prime Lending Rate). A recent cut of 15 bps was announced effective 10 Feb 2026.
Does it pay dividends? No – 0% dividend yield; profits are reinvested for growth.
Aadhar Housing Finance: Key Financial Snapshot
Metric
Value
Market Capitalization
₹20,978.39 Cr
Current Share Price
₹483
52-Week High / Low
₹548 / ₹340
P/E (TTM)
20.37
P/B (TTM)
2.93
Book Value (TTM)
₹165.33
EPS (TTM)
₹23.75
ROE
16.95%
ROCE
11.46%
Dividend Yield
0%
Net Profit (TTM)
₹912.11 Cr
Operating Revenue
₹3,107.35 Cr
Advances (Loan Book)
₹20,484.10 Cr
Sales Growth (YoY)
20.13%
Profit Growth (YoY)
21.86%
Shareholding Pattern
Category
Holding (%)
Promoters
75.19%
Public (Retail)
10.17%
Domestic Institutions (DII)
8.44%
Foreign Institutions (FII)
6.19%
Others
0%
Note: High promoter stake ensures strategic alignment but limits public float liquidity.
Based on consistent profit growth, strong ROE, affordable housing tailwinds, and reasonable valuation, we project the following realistic price ranges:
Year
Target Price Range (₹)
2026
₹510 – ₹580
2027
₹550 – ₹640
2028
₹590 – ₹700
2029
₹630 – ₹760
2030
₹670 – ₹820
These targets assume:
EPS CAGR of 18–20% (supported by 21.86% recent profit growth)
P/E range of 19–22x (in line with HFC sector averages)
Stable asset quality (GNPA at 1.38% as of Q3 FY26)
Year-wise Breakdown
Aadhar Housing Finance Share Price Target 2026
Year
Target 1
Target 2
2026
₹510
₹580
Rationale: Strong Q3 FY26 results (PAT ₹294 Cr, 9M PAT ₹797 Cr) and AUM of ₹28,790 Cr support near-term upside. The 12-month consensus target among analysts aligns with this range.
Aadhar Housing Finance Share Price Target 2027
Year
Target 1
Target 2
2027
₹550
₹640
Rationale: Expected benefit from PM Awas Yojana, rising homeownership in semi-urban India, and operational scale. ROE sustainability (~17%) supports premium vs peers.
Aadhar Housing Finance Share Price Target 2028
Year
Target 1
Target 2
2028
₹590
₹700
Rationale: By 2028, loan book could exceed ₹35,000 Cr. If cost of funds remains stable, margins may expand further.
Aadhar Housing Finance Share Price Target 2029
Year
Target 1
Target 2
2029
₹630
₹760
Rationale: Long-term play on India’s housing shortage (estimated 10 million units) and financial inclusion. Execution risk remains low due to proven model.
Aadhar Housing Finance Share Price Target 2030
Year
Target 1
Target 2
2030
₹670
₹820
Rationale: The upper end assumes market leadership consolidation, digital underwriting efficiency, and stable interest spreads. Even at ₹820, P/E would be ~22x—reasonable for a high-growth HFC.
Strengths vs Risks
✅ Strengths
Focused low-income niche with high repayment discipline
Strong backing from Blackstone and experienced management
Healthy asset quality (GNPA: 1.38%)
Consistent 20%+ profit growth and ROE >16%
⚠️ Risks
Zero dividend payout – not suitable for income investors
Interest rate volatility impacts net interest margins
Regulatory changes in HFC norms (RBI oversight)
Concentration risk in affordable segment
Investment Suitability
Factor
Assessment
Risk Profile
Moderate (mid-cap HFC)
Time Horizon
Long-term (5+ years)
Volatility
Moderate
Dividend/Income
None (0% yield)
Ideal Investor
Growth-focused investor bullish on affordable housing and financial inclusion
FAQs
For 2026, a realistic range is ₹510–₹580. By 2030, it could reach ₹670–₹820.
75.19% – indicating strong promoter confidence and control.
The IPO opened at ₹385 per share in December 2023.
Based on fundamentals and sector trends, ₹510–₹580 is a credible 12-month target.
As of early 2026, retail home loan rates start from 8.50% p.a., with a recent 15 bps RPLR cut effective 10 Feb 2026.
Final Verdict
Aadhar Housing Finance is a high-quality, focused HFC benefiting from India’s affordable housing boom. Its strong growth, clean balance sheet, and institutional backing make it a solid long-term compounder. While it offers no dividends, its earnings trajectory and reasonable valuation justify inclusion in growth portfolios. Our 2026–2030 price targets (₹510–₹820) reflect steady, sustainable appreciation—not speculative hype.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
