Shares of Aavas Financiers fell more than 5% on April 21 after managing director Sushil Agarwal reduced his stake in the company to 1.55% from 3.3%.

The stock was trading at Rs 1,577.20 at 1:24 pm, down 5.5% from its previous close on the BSE.

According to the Citi report, the sell-off could further weigh the stock, but the fundamentals remain intact.

Aavas Financiers posted consolidated net sales of Rs 411.37 crore in the December quarter FY2023, up 20.08% from Rs 342.58 crore in December 2021.

Net profit for the December 2022 quarter stood at Rs 107.12 crore, up 20.69% from Rs 88.76 crore in the same period last year.

The company’s EBITDA for the December quarter stood at Rs 295.02 crore, up 20% from Rs 245.85 crore in the same period last year.

Shares of Aavas Finances have risen more than 21% over the past three years but have fallen more than 34% in the last year.

Analysts said the stock was trading significantly below the BSE’s 50, 100 and 200-day moving averages, indicating a bearish trend.