Bajaj Housing Finance Ltd Stock Hits 52-Week Low at Rs.87.3

Stock Price Movement and Market Context

On 30 Jan 2026, Bajaj Housing Finance Ltd’s stock touched an intraday high of Rs.92.94, representing a 5.61% gain during the session. Despite this intraday strength, the stock ultimately settled at Rs.87.3, its lowest level in the past year and an all-time low. This closing price is notably below the stock’s 5-day moving average but remains under the 20-day, 50-day, 100-day, and 200-day moving averages, indicating a prevailing downward trend in the medium to long term.

In comparison, the Sensex opened at 81,947.31, down 619.06 points or 0.75%, and was trading at 82,120.83 by mid-session, a decline of 0.54%. The benchmark index is currently 4.92% below its 52-week high of 86,159.02. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, signalling mixed technical signals for the broader market.

Performance Overview: Bajaj Housing Finance Ltd vs Sensex

Over the past year, Bajaj Housing Finance Ltd has underperformed significantly, delivering a negative return of -19.34% compared to the Sensex’s positive 7.00% gain. The stock’s 52-week high was Rs.137, underscoring the extent of the recent decline. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the past three years, one year, and three months, reflecting sustained challenges in maintaining investor confidence and market momentum.

Factors Contributing to the Decline

A key factor influencing the stock’s downward trajectory is the reduction in promoter confidence. Promoters have decreased their stake by 2% over the previous quarter, now holding 86.7% of the company. Such a reduction in promoter shareholding often signals a cautious outlook on the company’s near-term prospects and can weigh on market sentiment.

Additionally, the company’s Mojo Score currently stands at 40.0, with a Mojo Grade of Sell, downgraded from Hold on 7 Nov 2025. This downgrade reflects a reassessment of the company’s fundamentals and market positioning. The Market Cap Grade is rated at 1, indicating a relatively low market capitalisation standing within its sector.

Financial Performance and Growth Metrics

Despite the recent price decline, Bajaj Housing Finance Ltd exhibits strong long-term fundamental strength. 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 highlight robust business expansion over recent years.

Quarterly results have been positive for four consecutive quarters, with net sales reaching a high of Rs.2,754.85 crore. Operating profit to interest ratio stands at 1.51 times, indicating healthy coverage of interest expenses by operating earnings. The company’s PBDIT for the quarter was Rs.2,502.17 crore, marking a quarterly peak.

Valuation and Return on Equity

Bajaj Housing Finance Ltd maintains a return on equity (ROE) of 11.1%, which is considered fair within the housing finance sector. The stock trades at a price-to-book value of 3.5, suggesting a valuation that reflects both growth prospects and current market conditions. Notably, while the stock price has declined by 19.34% over the past year, the company’s profits have increased by 25%, indicating a divergence between market valuation and earnings growth.

Technical and Sectoral Considerations

The stock’s recent performance contrasts with its sector peers, as it outperformed the housing finance sector by 5.46% on the day it hit the 52-week low. However, the broader trend remains subdued given the stock’s position below key moving averages. The Sensex’s own technical positioning, trading below its 50-day moving average but with the 50DMA above the 200DMA, suggests a cautious market environment that may be influencing investor behaviour towards housing finance stocks.

Summary of Key Metrics

To summarise, Bajaj Housing Finance Ltd’s stock has reached a new 52-week low of Rs.87.3 amid a market backdrop where the Sensex is trading below key averages and the company’s Mojo Grade has been downgraded to Sell. The stock’s underperformance relative to the Sensex and BSE500 indices over multiple timeframes, combined with a reduction in promoter stake, has contributed to the subdued market sentiment.

Nevertheless, the company’s financial results demonstrate consistent growth in sales and profits, with positive quarterly earnings and a fair ROE. The divergence between earnings growth and stock price performance highlights the complexity of market valuation dynamics in the housing finance sector at present.

Outlook on Market Positioning

While the stock’s current technical indicators and market positioning reflect challenges, the company’s underlying fundamentals remain robust. The stock’s movement relative to moving averages and sector performance will continue to be closely monitored by market participants as they assess the evolving landscape of housing finance companies in India.

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