Bajaj Housing Finance Ltd (BAJAJHFL) saw its stock dip after an initial surge, currently trading at ₹150.70, up just 0.07% at 2:14 PM. The stock opened at ₹152.50, touched a high of ₹153.75, and dropped to a low of ₹148.30 as analysts issued a cautious outlook.
A report downgraded Bajaj Housing Finance to a ‘Reduce’ rating with a target price of ₹110, citing concerns over steep valuation and a potential slowdown in its growth trajectory. The stock’s high valuation of 5.5x FY26e PB and 44x FY26e PE suggests lofty expectations, but analysts expect AUM (assets under management) growth to slow down, with margins likely to face pressure due to normalised credit costs and NIM compression.
Despite Bajaj Housing Finance’s strong track record of growth, analysts highlighted that further acceleration might be challenging, leading to a less favorable risk-reward ratio at current valuations.
Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.
