Stock Price Movement and Market Context
On 21 Jan 2026, Bajaj Housing Finance Ltd recorded a closing price of Rs.88.94, the lowest level ever observed for the stock. This represents a continuation of a downward trend that has persisted over several months. Despite a minor uptick following four consecutive days of decline, the stock remains below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In terms of daily performance, the stock declined by 0.19%, slightly underperforming the Sensex, which fell by 0.13% on the same day. Over the past week, Bajaj Housing Finance’s share price has dropped by 4.16%, compared to a 1.57% decline in the Sensex. The one-month and three-month performances are even more pronounced, with losses of 5.95% and 19.03% respectively, while the Sensex posted declines of 3.37% and 2.79% over the same periods.
Long-Term Performance Analysis
The stock’s underperformance extends well beyond short-term fluctuations. Over the last year, Bajaj Housing Finance Ltd has delivered a negative return of 20.82%, in stark contrast to the Sensex’s positive 8.22% gain. Year-to-date figures also show a 5.00% decline for the stock versus a 3.70% drop in the Sensex. More notably, the company’s three-year and five-year returns stand at 0.00%, while the Sensex has appreciated by 35.38% and 65.38% respectively over these periods. The ten-year performance similarly shows no growth for the stock, compared to a substantial 242.50% rise in the Sensex.
This prolonged stagnation and decline have contributed to a downgrade in the company’s Mojo Grade from Hold to Sell as of 07 Nov 2025, reflecting a reassessment of its market standing and outlook. The current Mojo Score stands at 40.0, indicating a cautious stance on the stock’s near-term prospects.
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Financial Metrics and Operational Highlights
Despite the share price decline, Bajaj Housing Finance Ltd has demonstrated robust fundamental growth in recent years. The company’s net sales have expanded at a compound annual growth rate (CAGR) of 30.00%, while operating profits have grown at a CAGR of 27.65%. This growth trajectory is supported by positive quarterly results over the last four consecutive quarters.
In the most recent quarter, net sales reached a record high of Rs.2,754.85 crore, with operating profit before depreciation, interest, and taxes (PBDIT) also hitting a peak of Rs.2,502.17 crore. The operating profit to interest coverage ratio stood at a healthy 1.51 times, indicating adequate earnings to cover interest expenses.
The company’s return on equity (ROE) is reported at 11.1%, which, combined with a price-to-book value of 3.5, suggests a fair valuation relative to its earnings and asset base. Over the past year, while the stock price has declined by 20.82%, the company’s profits have increased by 25%, highlighting a divergence between market valuation and operational performance.
Shareholding and Market Capitalisation
Bajaj Housing Finance Ltd is predominantly promoter-owned, with promoters holding the majority stake. The company’s market capitalisation grade is rated at 1, reflecting its standing within the housing finance sector and broader market capitalisation metrics.
In terms of sector performance, the stock has marginally outperformed its housing finance peers today by 0.73%, despite the overall negative trend. However, this relative outperformance has not been sufficient to reverse the longer-term downward trend.
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Summary of Performance and Market Standing
Bajaj Housing Finance Ltd’s current share price at Rs.88.94 represents a historic low point, underscoring the stock’s extended period of underperformance relative to the Sensex and sector benchmarks. The company’s downgrade to a Sell rating by MarketsMOJO reflects this trend, with the Mojo Score of 40.0 signalling caution.
While the company continues to report strong growth in net sales and operating profits, this has not translated into positive returns for shareholders over the medium to long term. The stock’s failure to keep pace with broader market gains over one, three, five, and ten-year horizons highlights the challenges faced in aligning market valuation with operational progress.
Investors and market participants will note the divergence between fundamental growth metrics and share price performance, as well as the stock’s position below all key moving averages, which typically indicates a lack of upward momentum in the near term.
Conclusion
The all-time low reached by Bajaj Housing Finance Ltd is a significant marker in the company’s market journey, reflecting a complex interplay of valuation, sector dynamics, and investor sentiment. The company’s solid fundamental growth contrasts with its subdued market performance, presenting a nuanced picture of its current standing within the housing finance sector.
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