Bajaj Housing Finance Ltd Hits All-Time Low Amidst Prolonged Downtrend

Recent Market Performance and Price Movement

The stock price of Bajaj Housing Finance Ltd fell by 0.49% on 24 Feb 2026, closing at Rs.86.82, which is the lowest level ever recorded for the company. This decline is part of a broader downtrend, with the stock losing value for four consecutive trading sessions, resulting in a cumulative fall of 1.96% over this period. The stock’s performance today was broadly in line with the sector, which also saw a modest decline.

Notably, Bajaj Housing Finance is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This technical positioning suggests that the stock has yet to find a stable support level in the near term.

Comparative Performance Against Benchmarks

When compared to the broader market, Bajaj Housing Finance’s returns have been markedly weaker. Over the last one year, the stock has declined by 23.46%, while the Sensex has appreciated by 10.94% during the same period. The divergence is even more pronounced over the three-month horizon, with the stock down 17.88% versus a 2.71% decline in the Sensex.

Year-to-date, the stock has fallen 7.96%, underperforming the Sensex’s 3.08% decline. Over longer time frames, the stock has shown no appreciable gains over three, five, and ten years, contrasting sharply with the Sensex’s robust growth of 38.90%, 62.65%, and 257.73% respectively. This underperformance highlights the stock’s relative weakness within the housing finance sector and the broader market.

Shareholding Trends and Promoter Confidence

One notable development is the reduction in promoter stake, which has decreased by 2% over the previous quarter to 86.7%. This decline in promoter holding may be interpreted as a signal of diminished confidence in the company’s near-term prospects. Promoter stake reductions often attract market attention as they can reflect changing internal assessments of business outlook.

Financial Metrics and Operational Highlights

Despite the stock’s subdued market performance, Bajaj Housing Finance Ltd has demonstrated strong fundamental growth in its core business metrics. The company has achieved a compound annual growth rate (CAGR) of 27.65% in operating profits, reflecting robust operational expansion over the long term.

Net sales have grown at an annual rate of 30.00%, underscoring healthy demand and business scaling. The company has reported positive results for five consecutive quarters, with the latest quarter recording net sales of Rs.2,885.93 crores, the highest to date. Operating profit to interest coverage ratio reached 1.51 times, indicating improved earnings relative to interest expenses. Additionally, the profit before depreciation, interest, and tax (PBDIT) stood at Rs.2,623.10 crores, also a record high.

Valuation and Return on Equity

Bajaj Housing Finance Ltd maintains a return on equity (ROE) of 11.7%, which suggests a fair level of profitability relative to shareholder equity. The stock’s price-to-book value ratio is 3.4, indicating that the market values the company at a premium to its book value, despite recent price declines. This valuation reflects a balance between growth expectations and current market sentiment.

Interestingly, while the stock price has declined by 23.46% over the past year, the company’s profits have increased by 25%, highlighting a disconnect between market valuation and underlying earnings growth.

Sector and Industry Context

Bajaj Housing Finance Ltd operates within the housing finance sector, which has experienced mixed performance in recent periods. The sector’s overall trends have been influenced by macroeconomic factors, interest rate movements, and regulatory developments. The stock’s performance has been broadly in line with sector movements on the day of the all-time low, but its longer-term returns have lagged behind sector benchmarks.

Rating and Market Sentiment

MarketsMOJO assigns Bajaj Housing Finance Ltd a Mojo Score of 40.0, with a current Mojo Grade of Sell, downgraded from Hold on 7 Nov 2025. The market capitalisation grade stands at 2, reflecting the company’s mid-tier size within the housing finance industry. This rating change underscores a cautious stance based on recent price trends and shareholding patterns.

Summary of Performance Trends

The stock’s recent trajectory has been characterised by consistent declines, with a 3-month return of -17.88% and a 1-month return of -1.73%, both underperforming the Sensex and sector averages. Over the past three and five years, the stock has shown no appreciable gains, contrasting with the Sensex’s strong upward trend. This prolonged underperformance highlights the challenges faced by the company in translating its operational growth into market value appreciation.

While the company’s financial results indicate steady growth in sales and profits, the market’s valuation response has been subdued, reflecting a cautious sentiment among investors and market participants.

Conclusion

Bajaj Housing Finance Ltd’s fall to an all-time low of Rs.86.82 marks a significant point in its market journey. The stock’s sustained decline over multiple time frames, combined with reduced promoter stake and a downgrade in rating, paints a picture of a company navigating a complex market environment. Despite strong fundamental growth in operating profits and sales, the stock’s valuation and price performance remain under pressure, underscoring the divergence between business fundamentals and market sentiment.

Investors and market watchers will continue to monitor the stock’s price action and financial disclosures closely as the company operates within a competitive and evolving housing finance sector.

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