May 16, 2025 - Bajaj Housing Finance Ltd (NSE: BAJAJHFL) ended the trading day at ₹123.95, reflecting a modest 0.78% increase (+₹0.96) on Friday, signaling steady investor confidence in the housing finance giant. The stock opened at ₹123.41, hit a high of ₹124.77, and touched a low of ₹122.71, with a market capitalization of ₹1.03 lakh crore.
The slight uptick comes on the heels of robust Q4 FY25 results announced on April 23, where the company reported a 54% year-on-year net profit surge to ₹587 crore, driven by a 24% rise in net interest income to ₹823 crore. Revenue for the quarter grew 25.78% to ₹2,498.67 crore, while full-year FY25 net profit rose 24.94% to ₹2,162.90 crore on revenues of ₹9,575.61 crore. The company’s capital adequacy ratio stood strong at 28.24%, well above the regulatory requirement of 15%, and gross NPA remained low at 0.29% as of March 2025.
Analyst sentiment remains mixed. While some brokerages, like HSBC, have set a bearish target of ₹100, citing high valuations and competitive pressures, others are optimistic, with a median 12-month target price of ₹109.43 and a high estimate of ₹140. Posts on X reflect bullish sentiment, with some users projecting a potential breakout toward ₹170 following a channel breakout. However, five out of seven analysts covering the stock recommend a ‘sell’ due to a high P/E ratio of 46.42, compared to the sector average of 13.58.
Bajaj Housing Finance, a non-deposit-taking housing finance company, has seen increased trading activity since the expiry of a one-year lock-in period on April 15, freeing up 529.1 crore shares. The company, a subsidiary of Bajaj Finance Ltd, maintains a promoter holding of 88.75% as of March 2025, with mutual fund ownership at a modest 0.45%. Recent corporate actions include issuing ₹1,000 crore in non-convertible debentures on May 2 and scheduling its 17th Annual General Meeting for July 23.
Market Snapshot:
- 52-Week Range: ₹103.10 - ₹188.50
- P/E Ratio: 46.42
- Dividend Yield: None
Despite a 3.48% year-to-date decline, the stock has gained 3.80% over the past five days, supported by strong fundamentals and a positive outlook for the housing finance sector. Investors remain cautious, balancing the company’s solid financial performance against its premium valuations and market volatility.
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