Bajaj Housing Finance Ltd Falls to 52-Week Low of Rs.87.5

Stock Price Movement and Market Context

On the trading day, Bajaj Housing Finance Ltd’s share price reached its lowest level in the past year, closing at Rs.87.5. This represents a substantial decline from its 52-week high of Rs.137, indicating a depreciation of approximately 36.1% over the period. Despite outperforming its sector by 0.99% on the day, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

The broader market environment has also been challenging. The Sensex opened 100.91 points lower and traded at 81,281.75, down 0.31%, marking its third consecutive weekly decline with a cumulative loss of 2.75%. Notably, sectoral indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows, underscoring sector-wide pressures impacting housing finance and related industries.

Performance Metrics and Comparative Analysis

Over the last year, Bajaj Housing Finance Ltd’s stock has delivered a negative return of 15.93%, underperforming the Sensex, which posted a positive return of 7.85% over the same period. The stock’s underperformance extends beyond the one-year horizon, with returns lagging behind the BSE500 index across the last three years, one year, and three months, highlighting persistent challenges in maintaining investor confidence and market valuation.

Promoter Stake and Market Sentiment

One notable factor contributing to the stock’s subdued performance is the reduction in promoter shareholding. Promoters have decreased their stake by 2% over the previous quarter, now holding 86.7% of the company’s equity. This decline in promoter confidence may be interpreted as a cautious stance regarding the company’s near-term prospects, potentially influencing market sentiment negatively.

Financial Performance and Operational Highlights

Despite the stock’s price challenges, Bajaj Housing Finance Ltd has demonstrated robust fundamental strength. The company has achieved a compound annual growth rate (CAGR) of 27.65% in operating profits, reflecting sustained operational efficiency and growth. Net sales have expanded at an annual rate of 30.00%, underscoring healthy top-line momentum.

Recent quarterly results have been positive for four consecutive quarters, with net sales reaching a quarterly high of Rs.2,754.85 crores. Operating profit to interest coverage ratio stood at a strong 1.51 times, while PBDIT (Profit Before Depreciation, Interest and Taxes) hit a quarterly peak of Rs.2,502.17 crores. These figures indicate the company’s ability to generate earnings and manage interest obligations effectively.

Valuation and Return on Equity

Bajaj Housing Finance Ltd currently trades at a price-to-book value of 3.5, which is considered fair given its return on equity (ROE) of 11.1%. While the stock has declined by 15.93% over the past year, the company’s profits have increased by 25% during the same period, suggesting a disconnect between earnings growth and market valuation.

Sectoral and Broader Market Influences

The housing finance sector has faced headwinds, as reflected by the 52-week lows in related indices such as NIFTY REALTY and NIFTY MEDIA. These sectoral pressures, combined with the broader market’s recent downward trend, have contributed to the subdued performance of Bajaj Housing Finance Ltd’s stock. The Sensex’s position below its 50-day moving average, despite the 50DMA remaining above the 200DMA, indicates a cautious market environment that has weighed on housing finance stocks.

Mojo Score and Analyst Ratings

Bajaj Housing Finance Ltd currently holds a Mojo Score of 40.0, categorised as a Sell grade as of 7 Nov 2025, a downgrade from its previous Hold rating. The company’s market capitalisation grade stands at 1, reflecting its relative size and liquidity in the market. This rating adjustment aligns with the stock’s recent price performance and promoter stake reduction, signalling a more cautious outlook from rating agencies.

Summary of Key Metrics

To summarise, Bajaj Housing Finance Ltd’s stock has reached a new 52-week low of Rs.87.5, underperforming both its sector and the broader market indices. The decline is accompanied by a reduction in promoter shareholding and a downgrade in Mojo Grade to Sell. Despite these challenges, the company maintains strong fundamental growth in sales and operating profits, with positive quarterly results and a fair valuation based on ROE and price-to-book metrics.

The stock’s current trading below all major moving averages and the broader market’s cautious stance contribute to the subdued price levels. Investors and market participants will continue to monitor these factors as the company navigates the evolving housing finance landscape.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →