Majority of the analysts having coverage on the stock have a “sell” recommendation on it, after the company reported its March quarter results after market hours on Wednesday.
Brokerage firm HSBC wrote in its note that Bajaj Housing Finance reported healthy growth in its Assets Under Management (AUM) during the quarter, but high-cost ratio and yield compression due to increased competition was a drag for the company.
HSBC has cited three factors as to why Bajaj Housing Finance’s Earnings Per Share (EPS) growth may see a slowdown going forward. The three reasons cited include pressure on its AUM growth, compression in its Net Interest Margins (NIMs) and normalisation of credit costs.
Therefore, the brokerage has cut its financial year 2026-2027 EPS estimates for Bajaj Housing Finance by 2.8% to 3.1%.
HSBC has a “reduce” rating on Bajaj Housing Finance, with a price target of ₹100, which implies a potential downside of 24% from Wednesday’s closing levels.
Ambit Capital and Goldman Sachs, both have “sell” recommendations on Bajaj Housing Finance, and both have a price target of ₹82 each on the stock. That is the lowest target on the street for the stock, very close to its IPO price of ₹70 per share.
Barring Phillip Securities (Buy, ₹140 target) and ULJK Financial Services (Buy, ₹166 target), the stock trades above all other price targets ascribed by analysts.
Out of the nine analysts that have coverage on Bajaj Housing Finance, five of them have a “sell” rating on the stock, three have a “buy” rating, while one has a “hold” recommendation.
Bajaj Housing Finance reported a 31% growth in its Net Interest Income (NII) during the March quarter, compared to the same period last year, while its net profit went up by 54% from the previous year. Asset quality also remained stable.
Shares of Bajaj Housing Finance ended 0.6% higher on Thursday at ₹131.92, which is nearly 100% higher than its IPO price of ₹70, but lower than its post-listing high of ₹188.5.
