The brokerage reportedly cited that the affordable housing financier could provide strong earnings growth in the coming years driven small size and 'good' execution track record that should enable a 29% annualised growth in assets under management over the next three years.

Pricing power and efficient cost structure help it deliver healthy ROA (return on asset), though low leverage limits ROE (return on equity), the brokerage reportedly said in a note.

Aptus Value Housing Finance India is a housing finance company with a network of 211 branches catering to over 89,000 active live accounts in Tamil Nadu (including the Union Territory of Puducherry), Andhra Pradesh, Karnataka, Telangana and Odisha. The company offers home loans for purchase and self-construction of residential property, home improvement, extension loans, loan against property and business loans, primarily to first time home buyers belonging to the low and middle-income groups.

On a consolidated basis, Aptus Value Housing Finance India's net profit rose 61.6% to Rs 118.84 crore on 33.8% increase in total income to Rs 248.76 crore in Q1 June 2022 over Q1 June 2021.