Aptus Value Housing Finance | Asia Pacific Growth Inflects; Buy the Dip

Research evidence excerpt

Aptus Value Housing Finance | Asia Pacific Growth Inflects; Buy the Dip

Idea

August 3, 2026 12:01 AM GMT

Morgan Stanley India Company Private Limited+MAptus Value Housing Finance | Asia Pacific Kushan Parikh, CFA

Equity Analyst

Growth Inflects; Buy the Dip Kushan.Parikh@morganstanley.comSubramanian Iyer +91 22 6118-1082

Subramanian.Iyer@morganstanley.com +91 22 6118-2234

We largely maintain F27-29 forecasts. 20% ROE, 20%+ secular Sakshi V Chaplot

loan CAGR at 10x F28e P/E and 1.9x P/B appear attractive. We Research Associate

Sakshi.Chaplot@morganstanley.com +91 22 6118-2228

view the post-results share price drop as an overreaction and an

opportunity to buy. Our PT (unchanged) has 55% upside; OW.

Key Takeaways

We assess that the NII miss was driven by assignment of higher yielding portfolio Aptus Value Housing Finance India Ltd (APTS.NS, APTUS

(total income beat MSe) and higher average balance sheet liquidity. IN)

Incremental funding cost of 8.2-8.3% (NBFC) and 7.8-7.9% (HFC) are below India Financials | India

respective book costs. It expects to sustain current loan spread and NIM. Stock Rating Overweight

Industry View Attractive

It cited ~20bp improvement in 30+ dpd in July, vs. +66bp QoQ in 1Q, as certain Price target Rs405.00

Up/downside to price target (%) 55

borrower repayment commitments due in June were fulfilled in July. Shr price, close (Jul 31, 2026) Rs261.20

52-Week Range Rs364.00-193.03

It reiterated F27 AUM growth guidance of 22-24%. It also highlighted broad- Sh out, dil, curr (mn) 501

based momentum with disbursements in July up 25% YoY. Mkt cap, curr (bn) US$1.4

Avg daily trading value (mn) US$5.1

It reiterated operating cost to AUM guidance of 2.7-2.8% and credit cost (on Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

AUM) guidance of 50-60bp for F27.