Bajaj Housing Finance Ltd Stock Hits All-Time Low Amid Continued Downtrend

Recent Price Movement and Market Context

The stock recorded a day-on-day decline of 0.67%, underperforming the Sensex’s 0.45% fall on the same day. Over the past week, Bajaj Housing Finance’s share price dropped by 1.83%, compared to the Sensex’s 0.81% decline. The one-month performance shows a sharper fall of 3.68%, nearly double the Sensex’s 2.04% loss. Most notably, the stock has fallen 16.14% over the last three months, while the Sensex remained relatively stable with a marginal 0.90% decrease.

Year-to-date, the stock has declined 2.71%, slightly worse than the Sensex’s 2.37% fall. Over the last year, Bajaj Housing Finance has generated a negative return of 19.06%, in stark contrast to the Sensex’s positive 8.59% gain. The stock’s three-year and five-year returns stand at 0.00%, significantly lagging the Sensex’s 36.71% and 68.42% respective gains. Over a decade, the stock has not recorded any appreciable growth, while the Sensex surged by 239.86%.

Currently, the share price trades below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a sustained bearish trend. The stock has also recorded three consecutive days of losses, accumulating a 2.72% decline during this period.

Long-Term Performance and Market Capitalisation

Bajaj Housing Finance’s market capitalisation grade is rated at 1, indicating a relatively small market cap within its sector. The company’s Mojo Score stands at 40.0, with a Mojo Grade of Sell as of 7 Nov 2025, downgraded from a previous Hold rating. This reflects a reassessment of the stock’s relative strength and outlook by rating agencies.

The stock’s underperformance is evident when compared to the BSE500 index, where Bajaj Housing Finance has lagged over the last three years, one year, and three months. This persistent underperformance has contributed to the current valuation pressures and the new all-time low price point.

Financial Metrics and Growth Trends

Despite the share price decline, the company has demonstrated robust growth in its core financials. 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%. The company has reported positive results for four consecutive quarters, with the latest quarter showing net sales of Rs.2,754.85 crores and a PBDIT of Rs.2,502.17 crores, both at record highs.

Operating profit to interest coverage ratio reached 1.51 times in the most recent quarter, indicating a comfortable buffer for interest obligations. Return on equity (ROE) stands at 11.1%, suggesting moderate profitability relative to shareholder equity. The stock’s price-to-book value ratio is 3.6, reflecting a fair valuation in the context of its financial performance.

Over the past year, while the stock price has declined by 19.06%, the company’s profits have increased by 25%, highlighting a divergence between market valuation and operational results.

Shareholding and Sector Position

The majority shareholding remains with promoters, maintaining a stable ownership structure. Bajaj Housing Finance operates within the housing finance sector, which has experienced varied performance across peers and market cycles. The stock’s recent underperformance relative to its sector peers has contributed to its current market position.

Summary of Current Situation

Bajaj Housing Finance Ltd’s stock has reached an unprecedented low of Rs.91.6, reflecting a sustained period of price weakness. The stock’s performance has lagged behind key benchmarks including the Sensex and BSE500 index across multiple time horizons. While the company’s financial results show healthy growth in sales and profits, this has not translated into positive market sentiment or share price appreciation.

The downgrade to a Sell grade and the low Mojo Score underscore the challenges faced by the stock in regaining investor confidence. Trading below all major moving averages further emphasises the prevailing bearish momentum. The divergence between improving fundamentals and declining market valuation remains a notable feature of the current scenario.

Investors and market participants will continue to monitor the stock’s price action and financial disclosures closely as it navigates this phase of valuation adjustment.

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