Bajaj Housing Finance Ltd Stock Hits All-Time Low Amidst Prolonged Underperformance

Stock Price Movement and Market Context

On 30 Jan 2026, Bajaj Housing Finance Ltd recorded its lowest-ever share price at Rs.87.3. This new 52-week low underscores the stock’s ongoing challenges in regaining investor confidence. Notably, the stock outperformed its sector by 1.14% today, registering a modest gain of 0.66%, while the Sensex declined by 0.40%. However, this short-term uptick contrasts with the broader trend of declining valuations over multiple time frames.

The stock is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. Over the past month, the stock has declined by 5.97%, significantly underperforming the Sensex’s 2.88% fall. The three-month performance is more pronounced, with a 20.02% drop compared to the Sensex’s 2.57% decline.

Longer-term figures reveal deeper concerns. Over the last year, Bajaj Housing Finance Ltd’s stock has fallen by 22.84%, while the Sensex has appreciated by 7.13%. Year-to-date performance also shows a 6.12% decrease against the Sensex’s 3.50% fall. Over three and five years, the stock has effectively stagnated with zero returns, whereas the Sensex has surged by 38.21% and 77.67% respectively. The ten-year comparison further highlights the stock’s relative underperformance, with the Sensex rising 230.65% during this period.

Promoter Stake and Market Sentiment

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 decline in promoter confidence is a significant factor contributing to the stock’s subdued market performance and is reflected in the recent downgrade of the company’s Mojo Grade from Hold to Sell on 7 Nov 2025. The current Mojo Score stands at 40.0, reinforcing the cautious stance on the stock.

Financial Performance and Growth Metrics

Despite the stock’s price challenges, Bajaj Housing Finance Ltd exhibits strong fundamental growth in its core financials. The company has achieved a compound annual growth rate (CAGR) of 27.65% in operating profits, reflecting robust operational efficiency over the long term. Net sales have expanded at an annual rate of 30.00%, signalling healthy top-line growth.

Recent 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 a peak of 1.51 times, indicating adequate coverage of interest expenses by operating earnings. The company’s PBDIT for the quarter also hit a record Rs.2,502.17 crore.

Return on equity (ROE) is recorded at 11.1%, suggesting a fair level of profitability relative to shareholder equity. The stock’s price-to-book value ratio is 3.5, which aligns with its valuation metrics given the company’s growth profile. Notably, while the stock price has declined by 22.84% over the past year, profits have increased by 25%, highlighting a disconnect between market valuation and earnings growth.

Comparative Performance and Market Position

Bajaj Housing Finance Ltd’s performance has lagged behind the broader BSE500 index over the last three years, one year, and three months. This underperformance is a key factor in the current market assessment and rating downgrade. The company’s market capitalisation grade is rated at 1, reflecting its relatively small size and limited market liquidity compared to larger peers.

While the stock has marginally outperformed the sector on the day of the new low, the broader trend remains one of subdued returns and valuation pressures. The company’s position within the housing finance sector is challenged by these market dynamics, as reflected in its recent price movements and rating changes.

Summary of Key Metrics

Bajaj Housing Finance Ltd’s current Mojo Grade is Sell, downgraded from Hold on 7 Nov 2025, reflecting the market’s cautious stance. The Mojo Score of 40.0 and a market cap grade of 1 further illustrate the stock’s challenges in attracting positive momentum. The promoter stake reduction by 2% in the last quarter adds to the narrative of diminished confidence from key shareholders.

Despite these factors, the company’s financial fundamentals remain solid, with consistent growth in net sales and operating profits, alongside positive quarterly results. The disconnect between earnings growth and share price performance is a notable feature of the current market environment for Bajaj Housing Finance Ltd.

Overall, the stock’s fall to an all-time low at Rs.87.3 is a significant event that highlights the prevailing market sentiment and valuation pressures, set against a backdrop of steady fundamental growth and profitability metrics.

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