Aptus Value Hou. (APTUS)

FairStock Score: 73/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 28.10% and profit growth of 25.52% show a fast, profitable expansion.
• ROE of 20.60% with ROCE of 15.05% indicates efficient capital use and pricing power.
• Piotroski F-Score of 7/9 and FairStock Score of 79/100 suggest strong fundamentals and steady financials.
• Latest quarter profitability is high: ₹554 Cr sales produced ₹236 Cr net profit.
• At P/E of 13.74 with a 1.84% dividend yield, the valuation is not excessive for the growth rate.

Concerns

• Negative margin of safety of -31.17% against Graham Number of ₹186.02 means the price of ₹256.45 offers little Buffett-style cushion.
• Free cash flow is deeply negative at -₹1,495 Cr, and Altman Z-Score of 1.73 raises balance-sheet and cash-flow caution.
• Debt/Equity of 1.59 and EV/EBITDA of 371.55 highlight sensitivity to borrowing costs and earnings sustainability.
• Promoter holding of only 23.86% is low, making owner alignment weaker than I would prefer.

AI Analysis

Looking at Aptus Value Hou., I try to separate quality from hype. This is a housing finance company growing sales 28.1% and profit 25.52%, with return on equity of 20.6% and ROCE of 15.05%. Those are genuinely attractive numbers. A 20% ROE is the sort of evidence that a business has some real edge in pricing, underwriting or cost discipline—otherwise competition would crush returns over time. Piotroski score of 7 out of 9 supports the picture: strong profitability, healthy fundamentals, not just one lucky quarter. The latest quarter shows ₹554 Cr of revenue and ₹236 Cr of profit, so the margin is high, and FairStock scores it a steady 79/100. But I have to keep my feet on the ground. At ₹256.45, the P/E is 13.74 and P/B is 2.97. That is not a Graham bargain. Book value is ₹86.21, so I'm paying almost three times book for growth. The Graham Number is ₹186.02, and the data says margin of safety is -31.17%. In plain words, the price has outrun a conservative estimate of value. The balance sheet also needs caution: debt/equity is 1.59, free cash flow is -₹1,495 Cr, and Altman Z-Score stands at 1.73. A negative cash flow may simply mean the loan book is expanding, but with 1.59 times leverage, I need certainty that funding costs remain stable and asset quality stays clean. EV/EBITDA of 371.55 makes conventional earnings-based valuation absurd and tells me to rely on book value and loan quality, not this ratio. Promoter holding of 23.86% also bothers me; in this business, I want owners to have more skin in the game. As a value investor, I own good businesses at sensible prices. Aptus is a fine growth business, but at this price, my margin of safety is thin. I'd wait for a better price or more proof that the loan growth is safe.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer