Bajaj Housing Finance Ltd Stock Hits 52-Week Low at Rs.91.4

Stock Performance and Market Context

The stock has been on a downward trajectory, falling for three consecutive days and registering a cumulative loss of 2.9% over this period. Today’s decline of 0.96% further extended its underperformance relative to the Housing Finance Company sector, which outpaced Bajaj Housing Finance by 1.1% on the day. The current price of Rs.91.4 represents a substantial drop from its 52-week high of Rs.137, underscoring the challenges faced by the stock over the past year.

Technical indicators reflect a bearish trend, with the share price trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained selling pressure. This technical weakness aligns with the broader market environment, where the Sensex has experienced a three-week consecutive decline, losing 3.16% in that span. The benchmark index closed at 83,055.63, down 0.62% today, and remains 3.74% below its own 52-week high of 86,159.02.

Long-Term and Recent Returns

Over the last twelve months, Bajaj Housing Finance Ltd’s stock has delivered a negative return of 19.29%, contrasting sharply with the Sensex’s positive 8.36% gain over the same period. This underperformance extends beyond the immediate term, as the stock has lagged the BSE500 index across one-year, three-year, and three-month horizons. The company’s Mojo Score currently stands at 40.0, with a Mojo Grade of Sell, downgraded from Hold on 7 November 2025, reflecting a reassessment of its relative market standing and performance metrics.

Financial Metrics and Growth Trends

Despite the stock’s subdued market performance, Bajaj Housing Finance Ltd has demonstrated robust fundamental growth over the long term. The company’s operating profits have expanded at a compound annual growth rate (CAGR) of 27.65%, supported by a net sales growth rate of 30.00% per annum. This growth trajectory is reflected in the company’s recent quarterly results, which have been positive for four consecutive quarters.

In the latest quarter, net sales reached a record Rs.2,754.85 crore, while profit before depreciation, interest, and taxes (PBDIT) hit a high of Rs.2,502.17 crore. The operating profit to interest coverage ratio also improved to 1.51 times, indicating a comfortable buffer for interest obligations. Return on equity (ROE) stands at 11.1%, suggesting a reasonable level of profitability relative to shareholder equity. The stock’s price-to-book value ratio is 3.6, which is considered fair within the sector context.

Shareholding and Market Capitalisation

The company’s majority shareholding remains with promoters, providing a degree of ownership stability. However, the market capitalisation grade assigned to Bajaj Housing Finance Ltd is 1, indicating a relatively modest market cap compared to peers in the housing finance sector. This factor, combined with the stock’s recent price weakness, has contributed to the current Mojo Grade downgrade.

Sectoral and Broader Market Influences

The housing finance sector has faced headwinds in recent months, with many companies experiencing pressure on valuations amid tightening credit conditions and cautious lending environments. Bajaj Housing Finance Ltd’s stock performance has mirrored these sectoral trends, compounded by its relative underperformance against sector benchmarks. The Sensex’s recent volatility and three-week decline have also weighed on investor sentiment, affecting stocks across multiple sectors including housing finance.

While the company’s financial results indicate sustained growth and profitability improvements, the market has yet to fully reflect these fundamentals in the share price. The divergence between strong operational metrics and stock price performance highlights the complex interplay of market sentiment, sector dynamics, and valuation considerations.

Summary of Key Data Points

To summarise, Bajaj Housing Finance Ltd’s stock has reached a new 52-week low of Rs.91.4, down from a high of Rs.137 within the last year. The stock’s Mojo Grade was downgraded to Sell on 7 November 2025, reflecting its underperformance relative to the broader market and sector indices. Despite this, the company has maintained a positive growth trajectory with a 27.65% CAGR in operating profits and a 30.00% annual increase in net sales. Quarterly results have been consistently positive, with record net sales and PBDIT figures reported recently.

The stock’s valuation metrics, including an ROE of 11.1% and a price-to-book ratio of 3.6, suggest a fair valuation framework, though market capitalisation remains modest. The majority promoter shareholding provides ownership stability amid market fluctuations. Overall, the stock’s recent price decline to its 52-week low reflects a combination of sectoral pressures, broader market weakness, and relative underperformance over multiple time frames.

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