Bajaj Housing Finance shares may fall further after 44% drop from peak, HSBC says

Brokerage firm HSBC has maintained its “reduce” rating on Bajaj Housing Finance Ltd. but has cut its price target further after its December quarter results.

HSBC now expects shares of Bajaj Housing Finance to fall to levels of ₹90 in comparison to its earlier target of ₹110, which the stock already trades below.

The revised price target implies a further 15% downside for Bajaj Housing Finance shares. The stock has already corrected 44% from its post-listing high of ₹188.

Bajaj Housing Finance reported December quarter results on Monday, January 27, after market hours, where its Net Interest Income increased by 25% from last year to ₹806 crore, while its net profit increased by a similar quantum to ₹548 crore.

Gross NPA ratio remained unchanged at 0.29% in comparison to the previous quarter. Net Interest Margins too remained stable at 4% from 4.1% last quarter and last year.

HSBC expects Bajaj Housing Finance’s Earnings Per Share (EPS) growth to slow down due to pressure on its Assets Under Management (AUM) growth, margins, and normalisation of credit costs.

The brokerage has cut its financial year 2025-2027 Earnings Per Share (EPS) estimates by 3% to 4%.

50% of the 10 analysts who have coverage on shares of Bajaj Housing Finance have a “sell” rating on the stock. Three of them have a “buy” rating, while two have a “hold” recommendation.

Shares of Bajaj Housing Finance ended 3.4% lower on Monday at ₹105.4, ahead of the earnings announcement.