HSBC has downgraded Bajaj Housing Finance (BHFL) to ‘Reduce’ with a target price of ₹110, reflecting a downside from the current market price of ₹136.80. While Q2 results showed a healthy PAT, driven by income from assignment and lower credit costs, the brokerage noted that the company’s core-earning performance was muted.
HSBC expects EPS growth for Bajaj Housing Finance to slow down, citing factors like lower AUM growth, NIM pressure, and normalized credit costs. As a result, the brokerage has cut its FY25-27 EPS estimates by 1-4%.
Disclaimer: The views in this article are based on HSBC’s analysis and do not constitute investment advice. Investors should consult their financial advisors before making decisions. The author and the publication are not responsible for any investment losses arising from actions taken based on this article.
