Stock Performance and Market Context
On 2 Feb 2026, Bajaj Housing Finance Ltd’s stock touched an intraday low of Rs.87.15, representing a fall of 2.82% on the day and a consecutive two-day decline totalling a 2.78% loss. This new low also stands as the company’s all-time lowest price. The stock’s day change was recorded at -1.47%, underperforming the housing finance sector by 0.47% on the same day.
The broader market, however, showed resilience. The Sensex, after opening 167.26 points lower, rebounded sharply by 717.22 points to close at 81,272.90, a gain of 0.68%. Mega-cap stocks led this recovery, while the Sensex itself remains below its 50-day moving average, though the 50DMA is positioned above the 200DMA, signalling mixed technical signals for the broader market.
Bajaj Housing Finance’s stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained downward momentum. The 52-week high for the stock was Rs.137, highlighting the extent of the recent decline.
Long-Term and Recent Returns
Over the past year, Bajaj Housing Finance Ltd has delivered a negative return of -23.63%, significantly lagging behind the Sensex’s positive 4.86% return during the same period. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in maintaining market confidence.
Perfect timing to enter! This Small Cap from IT - Software just turned profitable with growth momentum clearly building up. Get in before the broader market notices!
- - New profitability achieved
- - Growth momentum building
- - Under-the-radar entry
Promoter Stake and Market Sentiment
One notable factor contributing to the stock’s subdued performance is the reduction in promoter confidence. Promoters have decreased their stake by 2% over the previous quarter, now holding 86.7% of the company’s shares. This reduction may be interpreted as a cautious stance on the company’s near-term prospects.
Financial Metrics and Operational Highlights
Despite the stock’s price weakness, Bajaj Housing Finance Ltd exhibits strong fundamental metrics. The company has achieved a compound annual growth rate (CAGR) of 27.65% in operating profits, supported by a 30.00% annual growth rate in net sales. These figures indicate robust underlying business expansion over the long term.
Recent quarterly results have been positive for four consecutive quarters. The latest quarter recorded net sales of Rs.2,754.85 crore, the highest to date. Operating profit to interest coverage ratio reached 1.51 times, while PBDIT stood at Rs.2,502.17 crore, also a record high.
Return on equity (ROE) is at 11.1%, and the stock trades at a price-to-book value of 3.5, suggesting a fair valuation relative to its earnings and book value. Notably, while the stock price has declined by 23.63% over the past year, the company’s profits have increased by 25%, highlighting a divergence between market valuation and financial performance.
Holding Bajaj Housing Finance Ltd from Housing Finance Company? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Concerns
The stock’s decline to a 52-week low is influenced by a combination of factors including reduced promoter stake, sustained underperformance relative to market indices, and technical weakness as evidenced by trading below all major moving averages. While the company’s financials demonstrate strong growth in sales and profits, the market valuation has not reflected these fundamentals in recent months.
Investors may note the contrast between the company’s operational results and its share price trajectory, which has been affected by broader market dynamics and sentiment within the housing finance sector.
Market Position and Sectoral Context
Bajaj Housing Finance Ltd operates within the housing finance sector, which has seen mixed performance amid fluctuating interest rates and regulatory developments. The company’s market capitalisation grade is rated at 1, indicating a relatively small market cap compared to peers. Its Mojo Score stands at 40.0 with a Mojo Grade of Sell, downgraded from Hold on 7 Nov 2025, reflecting a cautious stance on the stock’s near-term outlook.
The sector itself has experienced varied performance, with some companies benefiting from improving demand for housing loans, while others face pressure from credit costs and competitive intensity.
Technical Indicators and Trading Patterns
From a technical perspective, Bajaj Housing Finance’s share price has been on a downward trend, with the stock trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This broad-based weakness across multiple timeframes suggests persistent selling pressure. The recent two-day consecutive decline and the new 52-week low reinforce the current bearish momentum.
In contrast, the Sensex’s recovery on the same day highlights a divergence between the company’s stock and the broader market, which may be influenced by sector-specific factors or company-specific developments.
Conclusion
Bajaj Housing Finance Ltd’s stock reaching a 52-week low of Rs.87.15 marks a notable point in its recent market journey. The decline reflects a combination of reduced promoter confidence, underwhelming relative returns, and technical weakness despite solid financial growth and positive quarterly results. The stock’s performance remains subdued in the context of a recovering broader market and sector dynamics.
Market participants will continue to monitor the company’s financial metrics alongside trading patterns to assess the evolving valuation landscape within the housing finance sector.
Unlock special upgrade rates for a limited period. Start Saving Now →
