Bajaj Housing Finance Gains 0.48%: 3 Key Factors Driving the Week

2 February: Stock Hits 52-Week and All-Time Low Amid Market Resilience

On 2 February 2026, Bajaj Housing Finance Ltd’s shares plunged to a fresh 52-week low of Rs.87.15 intraday, closing near Rs.87.39. This represented a 2.82% intraday decline and a 2.65% drop on the day, marking the lowest price level in the company’s recent history. The stock’s fall contrasted sharply with the broader market, as the Sensex rebounded to close 0.68% higher at 35,814.09 despite a weak start.

The stock’s underperformance was compounded by a reduction in promoter shareholding by 2% to 86.7%, signalling potential concerns among insiders. Bajaj Housing Finance traded below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. Over the past year, the stock has declined by 24.55%, significantly lagging the Sensex’s 4.75% gain.

Despite this, the company’s fundamentals remain robust, with a compound annual growth rate (CAGR) of 27.65% in operating profits and a 30.00% annual growth in net sales. The latest quarterly results showed net sales of Rs.2,754.85 crore and PBDIT of Rs.2,502.17 crore, with an operating profit to interest coverage ratio of 1.51 times and a return on equity (ROE) of 11.1%. The price-to-book value ratio stands at 3.5, reflecting a valuation that some investors may find reasonable given the company’s growth trajectory.

3 February: Market Rally Supports Partial Recovery

Following the sharp decline, Bajaj Housing Finance Ltd rebounded on 3 February, gaining 1.62% to close at Rs.91.08. This recovery coincided with a strong Sensex rally, which surged 2.63% to 36,755.96, driven by broad-based buying in mega-cap stocks. The stock’s volume increased to 708,276 shares, indicating renewed investor interest.

This bounce back, however, was still below the Sensex’s pace, reflecting lingering caution among investors. The stock remained below key moving averages, and the promoter stake reduction continued to weigh on sentiment. Nonetheless, the positive market environment provided some relief from the prior day’s steep losses.

4 February: Steady Gains Amid Rising Volumes

Bajaj Housing Finance Ltd extended its gains on 4 February, rising 0.80% to Rs.91.81 on increased volume of 825,695 shares. The Sensex also advanced modestly by 0.37% to 36,890.21. This steady upward movement suggested some consolidation after the recent lows, supported by the company’s solid earnings backdrop.

The stock’s operating profit growth and strong quarterly results continued to underpin investor confidence, although the overall market remained cautious given the stock’s recent underperformance. The company’s Mojo Score remains at 40.0 with a Sell grade, reflecting ongoing valuation and momentum challenges.

5-6 February: Minor Pullback and Stabilisation

The stock experienced a slight pullback on 5 February, declining 0.72% to Rs.91.15 on reduced volume of 281,364 shares, while the Sensex fell 0.53%. On 6 February, Bajaj Housing Finance Ltd marginally recovered by 0.15% to Rs.91.29, with volumes further declining to 246,692 shares. The Sensex closed slightly higher by 0.10% at 36,730.20.

This period of stabilisation near Rs.91 suggests that the stock may be finding a short-term base after the earlier volatility. However, the limited volume and modest price changes indicate cautious trading, with investors awaiting clearer directional cues.

Weekly Price Performance Comparison

Key Takeaways

Bajaj Housing Finance Ltd’s week was characterised by a sharp initial decline to new 52-week and all-time lows, followed by a gradual recovery supported by broader market strength and solid quarterly earnings. The stock’s 0.48% weekly gain, however, lagged the Sensex’s 1.51% rise, reflecting ongoing challenges in regaining investor confidence.

Promoter shareholding reduction by 2% remains a cautionary signal, potentially impacting sentiment. The stock’s position below all major moving averages underscores persistent downward momentum despite recent gains. The company’s strong fundamentals, including a 27.65% CAGR in operating profits and a 30.00% annual net sales growth, highlight a divergence between operational performance and market valuation.

Quarterly results showing peak net sales of Rs.2,754.85 crore and PBDIT of Rs.2,502.17 crore, alongside a healthy operating profit to interest coverage ratio of 1.51 times, reinforce the company’s financial strength. The ROE of 11.1% and price-to-book ratio of 3.5 suggest a valuation that may be reasonable for long-term investors, though the current Mojo Sell grade reflects caution.

Conclusion

Bajaj Housing Finance Ltd’s stock performance over the week ending 6 February 2026 reflects a complex interplay between market sentiment and company fundamentals. The initial sharp decline to new lows highlighted investor concerns, particularly regarding promoter stake reduction and valuation pressures. However, the subsequent recovery and stabilisation near Rs.91 demonstrate resilience supported by strong quarterly earnings and operational growth.

While the stock’s 0.48% weekly gain trails the Sensex’s 1.51% advance, the underlying financial metrics suggest a company with solid growth prospects. The divergence between improving profitability and subdued market valuation underscores the cautious stance investors currently maintain. Monitoring promoter activity and technical indicators will be crucial in assessing the stock’s near-term trajectory.

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