Prabhudas Lilladher's research report onAAVAS Financiers

We attended AAVAS Financiers’ (AAVAS) management meet, which focused on technology and analytics. The management highlighted the company’s scalable technology architecture and increasing use of AI across the lending lifecycle. A platform has been designed to support multi-fold growth without the need for major tech changes and operates largely on a pay-per-use model, limiting the need for incremental opex as the business scales. AI/analytics initiatives are already showing benefits through lower TAT, higher FTR and pre-delinquency identification, while the management remains focused on improving productivity. Technology remains a key enabler of operating leverage for AAVAS, with further benefits likely from AI-led underwriting, collections, cross-sell and pricing initiatives.

We roll forward our estimates to Sep’28E and upgrade to ‘BUY’ rating (from ‘Accumulate’) with TP of INR1,685 (2.0x Sep’28 P/ABV vs. 2.1x earlier).

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Discover the latestBusiness News,Sensex, andNiftyupdates. ObtainPersonal Financeinsights, tax queries, and expert opinions onMoneycontrolor download theMoneycontrol Appto stay updated!

Find the best of Al News in one place, specially curated for you every weekend.

Stay on top of the latest tech trends and biggest startup news.