Should You Book Profits Or Hold On To Bajaj Housing Finance Shares? Analysts Decode

Bajaj Housing Finance Ltd., which witnessed a bumper listing at Dalal Street on Monday, could continue to yield returns for investors who were allotted shares in the the initial share sale, said analysts.

Shweta Daptardar, vice president of equity research in the BFSI division at Elara Securities Indian Pvt. told NDTV Profit that investors should look out for every opportunity to invest in the shares of the NBFC. 

“One should wait for the subscription and should jump into the stock with every correction, if there is any. You should be buying it even if there is no correction today,” she said.

Bajaj Housing Finance is the second-largest company in its segment after LIC Housing Finance Ltd.

Shares of the company listed at Rs 150 on Monday on the bourses, a premium of 114% on its IPO price of Rs 70 apiece. The stock eventually hit the upper circuit of 10% to touch Rs 164.99 per share. 

The growth pace of Bajaj Finance Ltd. is also likely to sustain, Daptardar said. The company’s position to penetrate deeper markets, its diversified portfolio with a strong pan-India presence and the management's execution will be key triggers for this, according to the analyst.

“We believe that 25–30% AUM CAGR is imminent in the next 2–3 years for Bajaj Housing Finance,” she said.

Meanwhile, Jignesh Shial, director of research and the head of the BFSI sector at InCred Capital, said, “They have the right mix of AUM and others and have an ability to grow in a similar kind of way. There has been a liking for such names where there is a pretty strong promoter, background and along with that the quality of growth is good. The growth is also compounding in nature. So, obviously people are going to like it.”

At the same time, he added that the valuation seems to have been a little stretched for a while.

“Gradually, we think there is some consolidation or correction likely but over a mid to long-term perspective we continue to like this stock. They will do quite well, just like the parent company,” he said.

If one is looking for a mid to long-term investment, Bajaj Housing Finance can be a good option, the analyst opined.

“Housing finance is a safe asset, management is good and the growth is in pretty good shape, at least for a couple more years,” Shial said.

The Bajaj Housing Finance IPO was conducted to comply with the latest guidelines of the Reserve Bank of India, which mandates upper-layer non-banking finance companies to be listed on the stock exchanges by Sept. 2025.

The central bank has classified Bajaj Housing Finance as an "upper layer" NBFC.