Bajaj Housing Finance shares up 4% post Q4 nos; is it a good stock to buy?

Bajaj Housing Finance share price: Despite the double digit growth in net profit and revenue, most analysts have shared 'sell' side views on Bajaj Housing Finance stock

Bajaj Housing Finance share price moved higher by 3.9 per cent on the BSE on Thursday, April 24, after the housing finance arm of Bajaj Group reported a healthy set of results for the March 2025 quarter (Q4FY25).

 

At 9:20 AM, Bajaj Housing Finance shares were trading 1.7 per cent higher at ₹134.15 per share, marginally lower than the day's high of ₹137. By comparison, the BSE Sensex index was quoting 0.12 per cent lower.

 

Around 1.32 million shares have changed hands on the stock's counter on the BSE, higher than the two-week average volume of 1.19 million shares. Together with the volume on the National Stock Exchange (NSE), 19.01 million shares have changed hands till the time of writing this report.

 

Bajaj Housing Finance's market capitalisation reached ₹1.1 trillion today.  READ STOCK MARKET LIVE UPDATES TODAY HERE

 

Bajaj Housing Finance Q4 results

The recently listed housing finance arm of Bajaj Group reported a 54 per cent year-on-year (Y-o-Y) surge in the company's net profit in Q4FY25. Bajaj Housing's Q4FY25 profit came at ₹587 crore as against ₹381 crore in the corresponding quarter last year.

 

Operationally, its net interest income (NII) jumped 31 per cent Y-o-Y to ₹823 crore, while the net interest margin (NIM) expanded to 4.1 per cent vs 3.8 per cent Y-o-Y.

 

The company's assets under management (AUM), at the end of the March quarter, stood at ₹1.15 trillion, up 26 per cent from ₹91,370-crore AUM seen at the end of Q4FY24.  ALSO READ | Tata Consumer Products slips 5% on posting Q4 results; Time to buy?

   

Bajaj Housing Finance share price target

Despite the double digit growth in net profit and revenue, most analysts have shared 'sell' side views on Bajaj Housing Finance stock.

 

Analysts at global brokerage HSBC, for instance, have maintained their 'Reduce' rating on Bajaj Housing stock with a share price target ₹100 per share.

 

HSBC's negative outlook on Bajaj Housing stems from concerns that pressure in AUM growth going ahead, coupled with compression in NIM and normalisation of credit costs, may keep earnings per share (EPS) under pressure in the near-term.

 

Similarly, analysts at Goldman Sachs have maintained their 'Sell' rating on the stock with a  share price target of ₹82 per share, suggesting a 38 per cent downside from the stock's last closing price on the BSE.

 

Overall, five of the nine analysts that track the stock have 'Sell' ratings, while three have 'Buy' ratings. Only one brokerage has a 'Hold' rating on Bajaj Housing Finance stock.  ALSO READ | Syngene International tumbles 10% as Q4 profit slips; key highlights here

 

About Bajaj Housing Finance

Bajaj Housing Finance is a non-deposit-taking housing finance company of the Bajaj Group. Over 55 per cent of its AUM comes from the housing loan segment, followed by loan against property (LAP; 10.7 per cent), and lease rental discounting (LRD;19.1 per cent).

 

Bajaj Housing Finance shares listed on the NSE and BSE on September 16, 2024 at ₹150 per share. The shares had debuted in the markets at a premium of 114 per cent compared to the IPO issue price of ₹70 per share.