Prabhudas Lilladher Recommends 'BUY' on AAVAS Financiers with Rs 1700 Target

• Prabhudas Lilladher maintains a 'BUY' rating for AAVAS Financiers, setting a target price of Rs 1700.
• AAVAS Financiers reported 3Q disbursements/AUM growth of 8%/15% year-on-year.
• Disbursement momentum is expected to continue until FY27, despite high competitive intensity.
• Projected AUM growth is 15%/16% for FY26/FY27E, with FY26 spread guided at 5.25% due to lower borrowing costs.
• Estimates for FY26/FY27E are tweaked to reflect growth recovery and improved operating expenses.