📈 Bajaj Housing Finance Shares Jump 4% After Q4 Results – But Analysts Remain Cautious
Bajaj Housing Finance Ltd., a subsidiary of Bajaj Finance Ltd., opened with a 4% gain on Thursday, April 24, after announcing its financial results for the March 2025 quarter. Despite the stock's positive momentum, several analysts remain skeptical about its future performance.
🔍 Q4 Performance Snapshot
Bajaj Housing Finance reported a strong performance for the March quarter:
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Net Interest Income (NII): Up 31% year-on-year
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Net Profit: Rose by 54% compared to last year
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Asset Quality: Remained stable
The market responded positively, with shares trading at ₹135.96, a 3.1% increase for the day. This is nearly double its IPO price of ₹70, although still below the post-listing high of ₹188.5.
📉 Analyst View: Mixed Sentiments with Bearish Outlook
Despite the impressive financial performance, the analyst consensus remains cautious. Out of the nine analysts covering the stock:
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5 have a ‘Sell’ rating
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3 recommend ‘Buy’
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1 has a ‘Hold’ view
💬 HSBC’s Take:
HSBC highlighted positive AUM growth but flagged concerns such as:
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Yield compression due to rising competition
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High-cost ratio
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Pressures on AUM growth
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Normalisation of credit costs
They downgraded their FY26–27 EPS estimates by 2.8% to 3.1% and placed a “Reduce” rating on the stock with a target price of ₹100, implying a potential 24% downside.
📉 Other Bearish Targets:
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Goldman Sachs and Ambit Capital have both set a price target of ₹82, aligning closely with the stock's IPO price.
📊 Bullish Calls Stand Out
Not all analysts are pessimistic. A couple of firms continue to believe in the long-term potential of Bajaj Housing Finance:
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Phillip Securities: “Buy” with a ₹140 target
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ULJK Financial Services: “Buy” with a ₹166 target
⚖️ Conclusion: Strong Quarter, But Uncertain Road Ahead
Bajaj Housing Finance’s strong Q4 performance has sparked short-term investor enthusiasm. However, concerns around rising competition, margin pressures, and slowing AUM growth are keeping analysts cautious. While the stock is trading much higher than its IPO price, the road ahead might be volatile depending on market sentiment and upcoming quarters’ performance.
Investors should weigh the strong fundamentals against the cautious analyst outlook before making any decisions.
Reference from:- https://www.cnbctv18.com/market/bajaj-housing-finance-share-price-target-q4-results-downside-buy-sell-nii-profit-aum-eps-impact-19593473.htm