Aptus continues to do very well, growing AUM by 29% in FY24 while maintaining 8%+ ROAs. They are confident of growing AUM by 30% in FY25. Concall notes from last couple of calls below.
FY24Q3
- Central audit employees reduced sequentially because there was a reclassification from central audit to head office (HO/operations)
- Opex will continue to be in the 2.7-2.75% range
- Have started booking some LAP loans in NBFC which was earlier getting booked in housing finance entity
- Reduced fixed loan borrowing because they envisage reduction in rates (so tactical in nature)
FY24Q4
- 30% growth in FY25
- Sequential decrease in # sales employees is due to attrition at lower employee grades
- Maintain 1-1.5 months of disbursements as cash equivalent
- Want to take leverage to 5x (equity / advances: 0.2)
Hard to say, at these high growth rates with such unit economics, they can even trade at 10x PB assuming they can maintain this combination of growth, profitability and asset quality. I am not really modeling an exit valuation yet, just seeing the picture unfold slowly.
Disclosure: Invested (position size here, no transactions in last-30 days)