Bajaj Housing Finance shares plunged to a new all-time low of Rs.90.41 today, marking a significant milestone in its ongoing decline.The stock has been on a downward trajectory for four consecutive trading sessions, cumulatively losing 3.66% over this period. Today’s decline of 0.95% further extended this trend, underperforming the Sensex’s 0.44% fall and the housing finance sector’s relative performance by 0.37%. Bajaj Housing Finance is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
Despite the stock’s price weakness, Bajaj Housing Finance has demonstrated strong fundamental growth over the long term. The company’s operating profits have grown at a compound annual growth rate (CAGR) of 27.65%, while net sales have expanded at an annual rate of 30.00%. This growth trajectory is reflected in the company’s quarterly results, which have been positive for four consecutive quarters. In the most recent quarter, net sales reached a record high of Rs.2,754.85 crores, with profit before depreciation, interest, and taxes (PBDIT) also hitting a peak of Rs.2,502.17 crores. The operating profit to interest ratio stood at 1.51 times, indicating a comfortable coverage of interest expenses. Return on equity (ROE) is reported at 11.1%, and the stock trades at a price-to-book value of 3.6, suggesting a fair valuation. Bajaj Housing Finance shares have halved from their post-listing peak of ₹188.5, a level reached within days of listing. The stock is now trading much closer to its IPO price of ₹70 per share, highlighting the sharp correction since debut.
Market veteran Deven Choksey, Managing Director at DRChoksey FinServ Pvt. Ltd., remains optimistic on the company’s long-term prospects despite near-term volatility. “Bajaj Finance remains the top pick, as the company is championing this model through the use of AI in bringing customers onto its platform,” Choksey said. He also expressed confidence in the broader NBFC space, ranking Bajaj Finance, Bajaj Housing Finance and Shriram Finance as his preferred picks.Choksey expects housing credit demand to remain strong, supported by structural growth in the housing sector. “If the third company has to be given preference, it would be Bajaj Housing Finance. Housing as a sector is going to grow significantly,” he added. As of the latest close, Bajaj Housing Finance’s market capitalisation stood at ₹1,30,751.90 crore, even after the sharp correction over the last six months.