Check Before You Invest : Bajaj Housing Finance Ltd

BSE: 544252 NSE: BAJAJHFL ISIN: INE377Y01014

| Sector: BFSI | Industry: Finance - Housing

Snapshot

Q.1 Which industry/sub-sector does Bajaj Housing Finance Ltd belong to?

Bajaj Housing Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.

Q.2 Is Bajaj Housing Finance Ltd a good quality company?

Bajaj Housing Finance Ltd is a average quality company, based on a somewhat consistent 9-year financial track record.

Q.3 Is Bajaj Housing Finance Ltd undervalued or overvalued?

Bajaj Housing Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Bajaj Housing Finance Ltd a good buy now?

Bajaj Housing Finance Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Bajaj Housing Finance Ltd?

Bajaj Housing Finance Ltd Operating Income growth is 25.71% for FY-2025, which is below its 5-year CAGR of 29.33%, indicating slower growth.

Q.2 Return on Assets of Bajaj Housing Finance Ltd?

Bajaj Housing Finance Ltd Return on Asset is 2.3%, which is above its 5-year historical median of 2.2%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	22.59	22.2
PPOP%	28.49	28.49
RoA%	2.3	2.2

Q.3 Return on Equity (ROE) of Bajaj Housing Finance Ltd?

Bajaj Housing Finance Ltd Return on Equity is 13.5% for FY-2025, which is in line with its 5-year historical median of 13.5%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Bajaj Housing Finance Ltd?

Bajaj Housing Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 28.49% for FY-2025, which is in line with its 5-year median(28.49%), indicating stable margins.

Q.5 Net Profit Margin of Bajaj Housing Finance Ltd?

Bajaj Housing Finance Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 22.59% for FY-2025, which is above its 5-year median( 22.2%), indicating increasing margins.

Q.6 Total Asset growth of Bajaj Housing Finance Ltd?

Bajaj Housing Finance Ltd Total Asset growth is 25.86% for FY-2025, which is below its 5-year CAGR of 27.28%, indicating slower growth.

Q.7 Capital Adequacy ratio of Bajaj Housing Finance Ltd?

Bajaj Housing Finance Ltd Capital Adequacy ratio (CAR) is 28.2% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Q.8 Asset Quality of Bajaj Housing Finance Ltd?

Bajaj Housing Finance Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 0.29% for FY-2025, which is in line with its 5-year median 0.29%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.11% which is in line with its 5-year median( 0.11%), indicating stable asset quality.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bajaj Housing Finance Ltd?

Promoters hold 86.70% of the Bajaj Housing Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Bajaj Housing Finance Ltd vs Industry Peers?

Bajaj Housing Finance Ltd AUM CAGR is 27.28%, compared to the 5-year industry median CAGR of 11.01%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Bajaj Housing Finance Ltd vs industry peers

Bajaj Housing Finance Ltd profit metrics are in line with the industry median level of 8.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	22.59	22.2
PPOP%	28.49	0.53
RoA%	2.3	2.2

Q.3 Operating efficiency of Bajaj Housing Finance Ltd vs industry peers?

Bajaj Housing Finance Ltd ROCE (8.7) is in line with the industry median of (8.7); while the current ROE (13.5) are above than the 5-year average Industry ROE (12.4). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	22.59	22.2
PPOP%	28.49	0.53
RoA%	2.3	2.2
ROCE%	9.6	8.7
ROE%	13.5	12.4

Valuation & price assessment

Q.1 Stock return of Bajaj Housing Finance Ltd over the last decade?

Over the last 1 years, the stock has delivered a CAGR of -28.55% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-28.6%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	28.38	46.86	14.89
Price to Book	3.23	4.95	1.26
Price to Sales	6.55	10.63	3.55
EV to EBITDA	12.34	19.05	10.70

Q.4 Valuation ratios of Bajaj Housing Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.23% is lower than its historical median of 4.95%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Bajaj Housing Finance Ltd return on invested capital (ROIC) is 6.93% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

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