(i) M Anandan, is the Chairman and Managing Director of the Company. He holds a bachelor’s degree in commerce from the University of Madras. He is also a member of the Institute of Chartered Accountants of India. He has over 40 years of experience in the financial services sector and has previously served as the managing director of Cholamandalam Investment and Finance Company Limited, part of the Murugappa Group, and was also managing director of Cholamandalam MS General Insurance Company Limited. He has served as the Chairman and Managing Director on the Board of the Company since December 11, 2009. (ii) Kandheri Munuswamy Mohandass, is a Non-Executive Independent Director of the Company. He holds a bachelor’s degree in science from the University of Madras. He is an associate and fellow of the Institute of Chartered Accountants of India. He is a partner in KM Mohandas & Co., Chartered Accountants. He has over three decades of experience in the financial services sector. He is also on the board of our Subsidiary, Aptus Finance India Private Limited. (iii) Sankaran Krishnamurthy, is a Non-Executive Independent Director of the Company. He holds a bachelor’s degree in science from the University of Madras. He is a certified associate of the Indian Institute of Bankers. He was the former deputy managing director of the State Bank of India, where he served for more than 38 years. He was also the managing director and chief executive officer of SBI Life Insurance Company Limited. He is also on the board of our Subsidiary, Aptus Finance India Private Limited. (iv) Krishnamurthy Vijayan, is a Non-Executive Independent Director of the Company. He holds a bachelor’s degree in commerce from C.M. Dubey Post-Graduate College, Bilaspur and he has cleared the masters of arts examination conducted by the Guru Ghasidas University, Bilaspur. He has previously served as the managing director and chief executive officer of IDBI Asset Management Limited, managing director of JP Morgan Asset Management India Private Limited, and chief executive officer of JM Financial Asset Management Private Limited and has various years of experience in the financial services industry. He is currently the chief executive officer of Tamil Nadu Infrastructure Fund Management Corporation Limited.

(Fig. in Crores)

Particulars	2017	2018	2019	2020	CAGR
Revenue from Operations	121	207	309	467	56.82%
Employee Benefits Exp	22	36	48	64
Provision for Advances	1.85	2.13	1.35	2.84
Other Exps	7.81	11	16	17
Operating Profit	88	158	244	382	62.71%
OPM	73.15%	76.13%	78.78%	81.72%
Other Income	5.10	5.32	8.71	12
Finance Cost	35	54	115	184
Depreciation & Amortisation Exp	1.8	2.37	2.92	5.80
Profit Before Tax	56	106	152	247	63.88%
Tax	18	36	41	36
Profit After Tax	37	70	111	211	78.35%
NPM	30.67%	33.79%	36.06%	45.13%
EPS	5.22	8.93	14.18	24.07

Key Factors:

Important Ratios	2020
Loan	3117 Cr
Net Interest Margin	9.08%
Net NPAs to Net Advances	0.61%
ROCE	5.63%
RONW	12.35%
B.V.	40

 

As per RHP, Aavas Financier is the peer of the company. If you see the valuation of Aavas Financier, it is trading at P/B of 8.47x.  Post IPO, Aptus P/B is 6.85.

Review and Recommendation of Aptus IPO from InvestorZone is 6/10. 1. Aptus has performed really well in the last 3 years in terms of revenue and AUM growth. 2. They have lowest NPA in the industry as they focus on serving low and middle-income groups with house as mortgage. 3. The IPO priced at P/B of 6.85 which looks decent priced as compared to peer Aavas Financier.

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