Aavas Financiers Ltd
NSE:AAVAS
Net Margin
Aavas Financiers Ltd
Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.
Net Margin Across Competitors
| Country | Company | Market Cap |
Net Margin |
||
|---|---|---|---|---|---|
| IN |
|
Aavas Financiers Ltd
NSE:AAVAS
|
165B INR |
27%
|
|
| US |
|
Rocket Companies Inc
NYSE:RKT
|
26B USD |
1%
|
|
| US |
|
UWM Holdings Corp
NYSE:UWMC
|
9B USD |
1%
|
|
| US |
|
Federal National Mortgage Association
OTC:FNMA
|
7.8B USD |
0%
|
|
| US |
|
Mr Cooper Group Inc
NASDAQ:COOP
|
6.6B USD |
30%
|
|
| US |
|
MGIC Investment Corp
NYSE:MTG
|
6.1B USD |
63%
|
|
| BM |
|
Essent Group Ltd
NYSE:ESNT
|
6B USD |
59%
|
|
| US |
|
Enact Holdings Inc
NASDAQ:ACT
|
5.2B USD |
57%
|
|
| US |
|
PennyMac Financial Services Inc
NYSE:PFSI
|
5.2B USD |
13%
|
|
| US |
|
Radian Group Inc
NYSE:RDN
|
4.8B USD |
47%
|
|
| US |
|
New York Community Bancorp Inc
NYSE:NYCB
|
4.5B USD |
-98%
|
Aavas Financiers Ltd
Glance View
In the bustling financial markets of India, Aavas Financiers Ltd. stands as a significant player catering to the housing finance sector. This Jaipur-based company emerged in the mid-2000s with a vision to make home ownership accessible to the underserved segments of the society—primarily the lower and middle-income groups. Aavas focuses on providing housing loans specifically in the semi-urban and rural areas across India, which are often neglected by larger financial institutions. By strategically targeting customers who have informal income but lack formal credit records, Aavas utilizes a robust risk assessment methodology tailored to these unique borrower profiles. Comprehensive field visits, personalized loan structuring, and customer education form the backbone of their lending process, allowing them to build and maintain a strong portfolio in these niche markets. Aavas Financiers generates revenue through the interest rates levied on the housing loans they extend, which are often structured to be longer-term to favor affordability. While their primary cash flow stems from these interest income streams, the company also earns through processing fees and other incidental charges related to the loan disbursement process. Crucially, Aavas's superior asset quality management and prudent risk mitigation strategies have consistently delivered high repayment rates. The meticulous focus on credit risk appraisal ensures a well-balanced loan book, making Aavas a profitable venture despite operating in high-risk markets. Their business model is thus characterized by driving volume through targeted and personalized lending solutions while tightly managing the inherent risks associated with the low-income borrower segment.
See Also
Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.
Based on Aavas Financiers Ltd's most recent financial statements, the company has Net Margin of 27.2%.
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