What Should Investors Know About Motilal Oswal’s View on Bajaj Housing Finance?
About Bajaj Housing Finance
Bajaj Housing Finance Ltd is a prominent player in India’s housing finance sector, offering home loans, loan against property, and other financial products. The company has consistently delivered strong asset growth while maintaining robust credit quality, catering to both urban and semi-urban customers. It faces competition from banks and other housing finance firms as it scales operations.
Motilal Oswal has initiated coverage on Bajaj Housing Finance with a Neutral rating and target price of Rupee 120.
AUM growth recorded ~29% CAGR FY20-25, expected to moderate due to scale and bank competition. RoE projected at 12-14% near-term, RoA/RoE FY28E at 2.3% / 14%. AUM/PAT CAGR ~22% FY25-28E.
Asset quality remains resilient with credit costs around 15bp FY26-28. Risks include intense competition in prime home loans, rising non-housing exposure, NIM pressure, and a potential slowdown in real estate or broader economy.
Bajaj Housing Finance trades at ~3.6x P/BV and ~29x FY27E P/E, reflecting roughly 60% premium over IPO levels.
Investor Takeaway
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