Aadhar Financing shares surged over 3% on January 17, 2025, following Citi's initiation of a 'Buy' rating with a target price of ₹565. The stock opened at ₹414.50, reaching a high of ₹418.00 and a low of ₹406.10 during the trading session. As of 9:26 AM, shares were trading at ₹408.80, reflecting a 3.36% increase. Citi highlighted Aadhar's consistent AUM growth of 16% CAGR over the past 4-6 years and its strong, diversified distribution network as key drivers of this positive outlook.
Moreover, enhanced technological capabilities have improved productivity and analytics, projecting a PAT growth of 22% for FY24-27E and an estimated RoE of 16.5%. Despite risks such as promoter dilution and an increasing informal borrower base, Citi remains optimistic about Aadhar's fundamentals and growth potential.
The stock remains below its 52-week high of ₹516.80 but is comfortably above its low of ₹292.00. This positive sentiment could influence investor confidence in the stock market.