Is Aadhar Hsg. Fin. overvalued or undervalued?

Jun 18 2025 08:02 AM IST
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As of June 17, 2025, Aadhar Housing Finance is considered attractively valued with a PE ratio of 20.98, an EV to EBIT of 14.38, and a year-to-date return of 4.98%, outperforming the Sensex, while being significantly cheaper than peers like Bajaj Finance and Bajaj Finserv.
As of 17 June 2025, Aadhar Housing Finance has moved from a fair to an attractive valuation grade. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE ratio of 20.98, an EV to EBIT of 14.38, and a ROE of 14.31%.

In comparison to its peers, Aadhar's PE ratio is significantly lower than Bajaj Finance's 34.47 and Bajaj Finserv's 36.06, both of which are categorized as very expensive. Additionally, Aadhar's EV to EBITDA ratio of 14.22 is more favorable than Life Insurance's fair rating of 9.76. Despite a recent dip in stock performance compared to the Sensex over the past week and month, Aadhar's year-to-date return of 4.98% slightly outpaces the Sensex's 4.41%, reinforcing its attractive valuation.
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