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

Recent Price Movements and Market Context

The stock closed just 0.1% above its 52-week low of Rs 87.3, touching an intraday low of Rs 87.39, representing a 2.55% drop on the day. This decline contributed to a 2.65% loss in a single session, contrasting sharply with the Sensex’s 0.57% gain on the same day. Over the past two days, Bajaj Housing Finance has recorded a cumulative return of -3.81%, signalling persistent selling pressure.

Further, the stock has underperformed its sector by 1.62% on the day and has consistently traded below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish sentiment among market participants.

Comparative Performance Over Various Time Horizons

Examining the stock’s returns relative to the Sensex and broader benchmarks reveals a pattern of underperformance. Over the last one month, Bajaj Housing Finance declined by 9.63%, nearly double the Sensex’s 5.34% fall. The three-month period saw a sharper drop of 20.82%, compared to the Sensex’s modest 3.28% decrease.

On a one-year basis, the stock’s return was -24.55%, starkly contrasting with the Sensex’s positive 4.75% gain. Year-to-date figures also show a 7.47% loss against the Sensex’s 4.74% decline. Over longer horizons, the stock has failed to generate returns, with zero growth recorded over three, five, and ten years, while the Sensex posted gains of 35.46%, 63.03%, and 230.84% respectively.

Promoter Stake and Market Confidence

One notable development is the reduction in promoter shareholding. Promoters have decreased their stake by 2% over the previous quarter, now holding 86.7% of the company’s equity. This reduction may be interpreted as a signal of diminished confidence in the company’s near-term prospects, adding to the stock’s downward momentum.

Fundamental Performance and Financial Metrics

Despite the stock’s price weakness, Bajaj Housing Finance has demonstrated robust fundamental growth over the long term. 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 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 high of Rs 2,754.85 crore, with operating profit before depreciation, interest, and taxes (PBDIT) peaking at Rs 2,502.17 crore. The operating profit to interest coverage ratio also improved to 1.51 times, indicating a stronger ability to service debt obligations.

Valuation and Return on Equity

Bajaj Housing Finance currently trades at a price-to-book value of 3.5, which is considered fair relative to its sector peers. The company’s return on equity (ROE) stands at 11.1%, reflecting moderate profitability. Notably, while the stock price has declined by 24.55% over the past year, the company’s profits have increased by 25% during the same period, highlighting a disconnect between market valuation and operational performance.

Sector and Market Comparison

The housing finance sector has experienced mixed performance, with Bajaj Housing Finance’s stock underperforming the BSE500 index over the last three years, one year, and three months. This relative underperformance has contributed to the stock’s current valuation challenges and its position near historic lows.

Mojo Score and Rating Update

MarketsMOJO assigns Bajaj Housing Finance a Mojo Score of 40.0, categorising it as a Sell. This rating was downgraded from Hold on 7 Nov 2025, reflecting the deteriorating market sentiment and the stock’s underperformance. The company’s market cap grade is 1, indicating a relatively small market capitalisation compared to larger peers.

Summary of Key Challenges

The stock’s decline to an all-time low is underpinned by several factors: a sustained negative price trend, underperformance relative to benchmarks, reduced promoter stake, and a market valuation that does not currently reflect the company’s fundamental earnings growth. The stock’s position below all major moving averages further emphasises the prevailing bearish technical outlook.

Conclusion

Bajaj Housing Finance Ltd’s stock has reached a significant low point, reflecting a combination of market dynamics and investor sentiment. While the company continues to report positive financial results and maintain healthy growth rates, the stock’s valuation and price performance remain subdued in comparison to broader market indices and sector peers.

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