Chola Securities has initiated a buy call on Aadhar Housing Finance, projecting an upside potential of 24.8 per cent over a 15–18 month period.

The brokerage cited the company’s steady business growth, with assets under management (AUM) rising at about 20 per cent CAGR between FY22 and FY25, while maintaining a similar year-on-year growth rate in 9MFY26. AUM increased from Rs 13,327 crore in FY21 to Rs 25,531 crore in FY25, and further to Rs 28,790 crore in 9MFY26.

Chola Securities also highlighted the company’s asset quality, with gross NPAs at 1.40 per cent and net NPAs at 1.0 per cent, supported by collection efficiency of 98.96 per cent and improving delinquency trends.

The company’s loan book remains diversified, with around 73 per cent home loans and 27 per cent loan against property, while no single state contributes more than 15 per cent of AUM. Conservative loan-to-value ratios of around 60 per cent were also noted as a risk-mitigating factor.

The brokerage added that Aadhar Housing’s network of more than 620 branches, plans to add around 50 branches annually, diversified borrowing profile across 44 lenders and expected lower funding costs support future growth and profitability.