Pressure on NIM continues; operating efficiency now showing up

Company
26 Jul 2024
5 Min read 
  • AAVAS Financiers reported 1QFY25 PAT growth of 15% YoY.
  •  AUM grew by 22% YoY, with disbursements slightly muted.
  •  The RBI circular impacted business operations and margins.
  •  NIM contracted by ~70bp YoY to ~7.3% in 1QFY25.
  •  Opex-to-avg. AUM declined to ~3.1% in 1QFY25.
  •  AAVAS trades at 2.8x FY26E P/BV, reflecting positive company aspects.
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