Small Housing Finance
Market Cap
₹20,896 ₹20,896 Cr.
P/E
18.31
PEG
1.02
PEG = P/E ÷ 5yr Forward EPS CAGR
5yr Forward EPS CAGR Thesis - Base Case

- The base case hinges on sustaining 20% AUM growth and spread above 5.5%, driven by branch expansion and PMAY tailwinds, while the bull case adds PMAY 2.0 acceleration and leverage expansion to 3.0x.- The bear case materialises if large banks aggressively target affordable housing with lower-cost funds, compressing spreads to 5.3-5.4% and pushing GNPA toward 1.5-1.8%.
- Loan Against Property is the primary swing factor, contributing over half the revenue downside in the bear case due to its higher yield sensitivity and credit risk.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • The base case hinges on sustaining 20% AUM growth and spread above 5.5%, driven by branch expansion and PMAY tailwinds, while the bull case adds PMAY 2.0 acceleration and leverage expansion to 3.0x.
  • The bear case materialises if large banks aggressively target affordable housing with lower-cost funds, compressing spreads to 5.3-5.4% and pushing GNPA toward 1.5-1.8%.
  • Loan Against Property is the primary swing factor, contributing over half the revenue downside in the bear case due to its higher yield sensitivity and credit risk.
Bear : 7.8% CAGR ₹4,100 Cr
Base: 16.7% CAGR ₹6,053 Cr
Bull: 21.0% CAGR ₹7,286 Cr
Management Credibility Report
TRACK RECORD
  • Management can be trusted on profitability and asset quality guidance, having consistently met or exceeded targets for PAT growth, cost-to-income, and credit cost.
  • Volume-growth commitments, however, are persistently optimistic, with medium-term AUM, disbursement, and branch-addition targets missed due to underestimated branch-gestation lags.
  • The 22-24% medium-term AUM growth ambition is aspirational, not execution-backed; investors should discount volume guidance by approximately 200 bps.
Met : 12
Progress: 4
Missed : 2
Risk Probe Report
WORST-CASE SCENARIO
  • The forensic profile is exceptionally clean, with strong capitalisation (CRAR 42.49%), stable asset quality (GNPA 1.08%), and 15 of 17 checks rated Low Risk.
  • The two medium-risk areas—declining PCR and ECL model complexity—are industry-typical for affordable housing finance and do not threaten solvency.
  • The most severe stress scenario is a 200bps repo rate hike that would compress spread below 4.0% and materially reduce profitability.
High Risk : 0
Medium Risk : 2
Low Risk : 15
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