Systematix initiates coverage on India's affordable housing financiers, sees attractive valuations

India Shelter Finance

31/08/2026 08:30

** Systematix Research initiates coverage on Indian affordable housing finance companies (AHFCs)
** Says valuations have turned attractive after a period of sector underperformance
** AHFCs retaining competitiveness over banks as they specialize in serving semi-formal borrowers through local property assessment and decentralized credit processes that are difficult for larger lenders to replicate, brokerage says
** Tier 2 and 3 cities in South India emerging as major growth drivers due to stronger income growth, increasing housing demand and deeper mortgage penetration opportunities - Systematix 
** Picks Home First Finance Co HOME.NS for productivity and technology and Aavas Financiers AVAS.NS for asset quality
** Picks Aptus Value Housing Finance India APTS.NS for superior returns and margins
** Also includes Aadhar Housing Finance AADA.NS for scale and diversification and India Shelter Finance Corp IDNI.NS for high growth potential in under-served markets

 (Reporting by Urvi Dugar in Bengaluru)
 ((UrviManoj.Dugar@thomsonreuters.com;))