Bajaj Housing Finance Stock Falls to 52-Week Low of Rs 94.9

Recent Price Movement and Market Context

On 2 December 2025, Bajaj Housing Finance opened with a gap down of 6.94%, continuing a three-day losing streak that has resulted in a cumulative return of -9.54% over this period. The stock touched an intraday low of Rs 94.9, representing a 9.19% decline within the trading session. This level also marks the lowest price point for the stock in the past 52 weeks and is the lowest ever recorded for the company’s shares.

Volatility has been notably high, with an intraday volatility of 8.72% calculated from the weighted average price, indicating significant price fluctuations during the session. Bajaj Housing Finance is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend in the short to long term.

In comparison, the Sensex opened lower at 85,325.51 points, down 316.39 points or 0.37%, and was trading at 85,454.19 points (-0.22%) during the same period. The benchmark index remains close to its 52-week high of 86,159.02, just 0.82% away, supported by mid-cap stocks which gained 0.24% on the day. This contrast highlights the relative underperformance of Bajaj Housing Finance within the broader market environment.

Performance Over the Past Year

Over the last 12 months, Bajaj Housing Finance’s stock price has declined by 28.97%, a stark contrast to the Sensex’s positive return of 6.49% during the same timeframe. The stock’s 52-week high was Rs 147.7, indicating a substantial drop from its peak price. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the past three years, one year, and three months.

Despite the stock’s price movement, the company’s profits have shown a rise of 25% over the past year, reflecting some operational strength amid the challenging market conditions. However, the stock’s valuation metrics suggest a relatively expensive price-to-book value of 4.1, which may be a factor in the subdued market sentiment.

Financial Metrics and Valuation

Bajaj Housing Finance’s return on equity (ROE) stands at 11.1%, which, when considered alongside its price-to-book ratio of 4.1, suggests a valuation that may be viewed as elevated relative to its earnings capacity. The company’s market capitalisation grade is low, indicating a smaller market cap relative to peers in the housing finance sector.

Operating profit growth has been robust over the long term, with a compound annual growth rate (CAGR) of 27.65%. Net sales have expanded at an annual rate of 30.00%, and operating profit has followed a similar trajectory. These figures point to healthy underlying business growth despite the stock’s recent price weakness.

Quarterly results have been positive for four consecutive quarters, with net sales reaching Rs 2,754.85 crore and PBDIT (profit before depreciation, interest, and taxes) at Rs 2,502.17 crore, both at their highest levels. The operating profit to interest coverage ratio stands at 1.51 times, indicating the company’s ability to cover interest expenses from operating profits.

Shareholding and Sector Position

The majority of Bajaj Housing Finance’s shares are held by promoters, reflecting a concentrated ownership structure. The company operates within the housing finance sector, which has seen mixed performance relative to broader market indices.

Summary of Current Concerns

The stock’s recent decline to Rs 94.9, its lowest in a year, reflects a period of sustained price pressure. Trading below all major moving averages and underperforming its sector by 8.54% today, the stock has faced downward momentum that has persisted over several sessions. The valuation metrics, including a price-to-book ratio of 4.1, may contribute to cautious market sentiment despite the company’s positive profit growth and strong quarterly results.

While the broader market, represented by the Sensex, remains near its 52-week high and supported by mid-cap gains, Bajaj Housing Finance’s share price has not mirrored this trend. The company’s long-term growth in operating profits and net sales contrasts with the recent stock price performance, highlighting a divergence between business fundamentals and market valuation.

Market Environment and Sector Dynamics

The housing finance sector continues to face a complex environment, with varying performance across companies. Bajaj Housing Finance’s stock has been notably volatile, with an intraday price range reflecting investor uncertainty. The Sensex’s position above its 50-day and 200-day moving averages indicates a generally bullish market backdrop, which contrasts with the stock’s current trajectory.

Investors and market participants may observe the company’s quarterly results and long-term growth metrics as part of their ongoing assessment, while the stock’s recent price action remains a key focus for those tracking sector developments.

Conclusion

Bajaj Housing Finance’s stock reaching a 52-week low of Rs 94.9 marks a significant milestone in its recent price history. The stock’s performance over the past year, combined with its current valuation and trading below key moving averages, underscores a challenging period for the company’s shares. Despite positive profit growth and strong quarterly results, the market has reflected caution through the stock’s price movements and volatility.

As the housing finance sector evolves, Bajaj Housing Finance’s financial metrics and market positioning will continue to be closely monitored within the context of broader market trends and sector dynamics.

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