A strong bullish candle has formed on Aavas Finance’s weekly chart, accompanied by high volume—the highest volume seen in the past year.
Technical Analysis:
1.The stock had been trading sideways for a long time but is now showing momentum with volume.
2.If this breakout is confirmed, a good upside move could be expected.
Fundamental Analysis:
Market Cap: ₹15,046 crore
EPS (Earnings Per Share): ₹71.1
P/E Ratio: 26.7 (Moderate valuation, but growth potential may justify it.)
Revenue Growth:
March 2013: ₹18 crore
March 2024: ₹2,018 crore 🚀 (Impressive 10-year growth!)
Financing Margin: Continually improving, which is a positive signal for profitability.
Reserves: Increasing steadily, indicating financial strength and stability.
Stock Price Vs. Fundamentals:
The company’s sales and profit are growing, but the stock price has not moved aggressively.
This could mean the market is still digesting valuation or liquidity factors.
Institutional Holding (Smart Money Presence):
FII Holding (Dec 2024): 33.97% (Strong confidence from foreign investors)
DII Holding (Dec 2024): 25.69% (Domestic institutions also hold a good stake)
Final Thoughts:
✅ Technical breakout + high volume could be a bullish signal.
✅ Strong fundamentals – revenue, profit, and reserves are growing consistently.
✅ Strong institutional holding by FIIs and DIIs, indicating stability.
⚠️ Breakout confirmation is crucial – if it sustains, a strong upside rally could follow!
