Aavas Financiers Ltd
NSE:AAVAS

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Aavas Financiers Ltd
NSE:AAVAS
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Price: 1 667.5 INR 0.13%
Market Cap: 132B INR
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Operating Margin
Aavas Financiers Ltd

72.8%
Current
72%
Average
24%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
72.8%
=
Operating Profit
14.8B
/
Revenue
20.3B

Operating Margin Across Competitors

Country IN
Market Cap 132B INR
Operating Margin
73%
Country US
Market Cap 23.6B USD
Operating Margin
9%
Country US
Market Cap 9.4B USD
Operating Margin
50%
Country US
Market Cap 6.1B USD
Operating Margin
37%
Country US
Market Cap 6.1B USD
Operating Margin
84%
Country BM
Market Cap 5.7B USD
Operating Margin
73%
Country US
Market Cap 5.1B USD
Operating Margin
78%
Country US
Market Cap 5.2B USD
Operating Margin
10%
Country US
Market Cap 4.8B USD
Operating Margin
70%
Country US
Market Cap 4.6B USD
Operating Margin
0%
Country US
Market Cap 4.1B USD
Operating Margin
0%
No Stocks Found

Aavas Financiers Ltd
Glance View

Market Cap
132B INR
Industry
Financial Services

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.

AAVAS Intrinsic Value
2 022.27 INR
Undervaluation 18%
Intrinsic Value
Price

See Also

Discover More
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
72.8%
=
Operating Profit
14.8B
/
Revenue
20.3B
What is the Operating Margin of Aavas Financiers Ltd?

Based on Aavas Financiers Ltd's most recent financial statements, the company has Operating Margin of 72.8%.