Bajaj Housing Finance Ltd. (BAJAJHFL) AI Stock Analysis

• Market Cap: ₹684.33B
• Dividend Yield: N/A
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 2,372
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): 0.80
• Shares Outstanding: 8,332,335,000
• 10 Day Avg. Volume: 748,942
• 30 Day Avg. Volume: 2,256,665
• PEG Ratio: 1.66
• Price to Book (P/B): 5.09
• Price to Sales (P/S): 11.06
• P/FCF Ratio: -5.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹100.00
• Price Target Upside: -8.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.04
• Revenue Forecast (FY): ₹44.08B

• Rating: 56 Neutral
• Price Target: ₹85.00 ▼(-22.09% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Bajaj Housing Finance Ltd. has a moderate overall stock score driven by strong financial performance but offset by high leverage and negative cash flow. The technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. The lack of dividend yield further impacts the valuation attractiveness.

Positive Factors

Sustained revenue growth

Revenue more than doubled over 2022–2025, reflecting durable loan-book expansion and stronger net interest income capacity. A growing asset base improves scale economics, enhances ability to cover fixed costs and provisions, and supports long-term franchise value creation.

Robust margins and operational efficiency

Consistently healthy gross and operating margins indicate efficient origination and servicing, and the ability to generate surplus even as loan volumes grow. Margin resilience supports durable profitability and buffer against cyclical credit or funding pressure.

Strengthening equity base

A materially larger equity base improves capitalization and loss-absorbing capacity, enabling further lending and regulatory compliance. Strong equity growth provides structural support for balance-sheet expansion and improves resilience to credit or market shocks.

Negative Factors

Very high and rising leverage

Debt nearly doubled over three years, leaving the company highly exposed to funding and interest-rate risk. Elevated leverage reduces financial flexibility, increases refinancing needs, and raises sensitivity to liquidity stress or adverse market conditions.

Persistent negative operating cash flow

Ongoing negative operating and free cash flows mean reported profits are not translating into internal cash generation. This structural cash deficit heightens reliance on external financing and can constrain ability to self-fund growth or absorb credit shocks.

Dependence on external financing

Positive financing cash flows indicate ongoing issuance or drawdowns to fund operations and growth. Reliance on markets or lenders is a structural vulnerability, exposing the company to refinancing, cost-of-funds variability and potential access issues in stressed conditions.

Bajaj Housing Finance Ltd. Business Overview & Revenue Model

Company Description

Bajaj Housing Finance Limited provides housing finance services in India. It offers finance to individuals, as well as corporate entities for the purchase and renovation of homes or commercial spaces. The company also provides loans against property for business or personal needs, as well as working capital for business expansion purposes. In addition, it offers finance to developers engaged in the construction of residential and commercial properties, as well as lease rental discounting to developers and high-net-worth individuals. The company was formerly known as Bajaj Financial Solutions Limited and changed its name to Bajaj Housing Finance Limited in November 2014. The company was incorporated in 2008 and is based in Pune, India. Bajaj Housing Finance Limited operates as a subsidiary of Bajaj Finance Limited.

How the Company Makes Money

BAJAJHFL primarily makes money through net interest income (NII): it raises funds (e.g., via borrowings and other funding lines) and lends them out as housing/real-estate loans, earning interest from customers while paying interest on its own funding; the spread between lending yields and funding costs (plus the benefit of managing credit losses) drives core earnings. A second major contributor is fee and other non-interest income, which can include processing fees, documentation/administrative charges, and other service-related fees associated with originating and servicing loans. The company’s profitability is also influenced by loan growth (average assets under management), product mix (e.g., home loans vs. loan against property vs. developer/real-estate finance), credit performance (provisions and write-offs), and operating efficiency. Any specific named partnerships, exact product-level revenue mix, or quantified revenue stream breakdown is null.

Bajaj Housing Finance Ltd. Financial Statement Overview

Summary

Bajaj Housing Finance Ltd. shows strong revenue and profit growth with impressive margins and effective cost control. However, high leverage and persistent negative cash flow pose potential risks, requiring strategic financial management to maintain liquidity and minimize debt-related risks.

Income Statement

Bajaj Housing Finance Ltd. has demonstrated robust revenue growth over the years, with a significant increase from ₹36,875 million in 2022 to ₹93,639 million in 2025, marking a strong upward trajectory. The company maintains a healthy gross profit margin, consistently above 30% in recent years. EBITDA and EBIT margins are strong, reflecting efficient cost management and operational profitability. However, the high net profit margin indicates substantial profitability, although some pressure could arise from industry competition.

Balance Sheet

The company's balance sheet shows a high level of total debt, increasing from ₹414,923 million in 2022 to ₹820,343 million in 2025, leading to a high debt-to-equity ratio. While this leverage could pose risks, the strong growth in stockholders' equity from ₹67,413 million in 2022 to ₹199,468 million in 2025 provides some stability. The equity ratio remains stable and indicates a solid foundation, though the high debt levels warrant careful monitoring.

Cash Flow

Cash flow analysis reveals a consistent pattern of negative operating and free cash flows over the years, indicative of the significant investments being made by the company. This poses a risk to liquidity and sustainability if not managed effectively. Despite this, the financing cash flow remains positive, suggesting that the company is actively managing its financing needs, possibly through debt or equity financing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	100.05B	91.79B	73.29B	54.81B	36.88B	31.55B
Gross Profit	33.25B	27.67B	22.11B	18.69B	12.16B	26.53B
EBITDA	32.01B	28.15B	22.04B	17.36B	9.88B	25.89B
Net Income	23.61B	21.63B	17.31B	12.58B	7.10B	4.53B
Balance Sheet
Total Assets	1.16T	1.03T	818.27B	646.54B	485.27B	378.58B
Cash, Cash Equivalents and Short-Term Investments	1.40B	617.80M	15.64B	21.69B	17.22B	39.83B
Total Debt	940.13B	820.34B	691.29B	537.45B	414.92B	316.33B
Total Liabilities	947.96B	828.62B	695.94B	541.51B	417.86B	318.26B
Stockholders Equity	211.80B	199.47B	122.33B	105.03B	67.41B	60.32B
Cash Flow
Free Cash Flow	-118.71B	-171.16B	-154.71B	-143.66B	-125.10B	-50.82B
Operating Cash Flow	-118.58B	-170.75B	-154.28B	-143.32B	-124.81B	-50.76B
Investing Cash Flow	1.73B	-7.98B	2.73B	-6.11B	21.97B	-7.97B
Financing Cash Flow	117.60B	178.70B	151.25B	146.30B	102.28B	56.76B

Bajaj Housing Finance Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 109.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BAJAJHFL, the sentiment is Negative. The current price of 109.1 is above the 20-day moving average (MA) of 86.18, above the 50-day MA of 89.77, and above the 200-day MA of 106.48, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 27.55 is Positive, neither overbought nor oversold. The STOCH value of 29.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BAJAJHFL.

Bajaj Housing Finance Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNBHOUSING	69 Neutral	₹199.12B	11.91	―	0.53%	12.51%	27.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HOMEFIRST	66 Neutral	₹102.85B	20.38	―	0.33%	31.75%	21.70%
AAVAS	64 Neutral	₹92.54B	17.04	―	―	―	―
APTUS	58 Neutral	₹111.19B	14.79	―	1.60%	28.47%	24.63%
BAJAJHFL	56 Neutral	₹684.33B	29.54	―	―	―	―
LICHSGFIN	55 Neutral	₹272.89B	5.31	―	1.87%	4.79%	13.08%

Bajaj Housing Finance Ltd. Corporate Events

Bajaj Housing Finance Raises Rs 503 Crore via Secured NCD Issue

Bajaj Housing Finance Limited has raised Rs. 503.42 crore through a private placement of 50,000 secured, redeemable non-convertible debentures with a face value of Rs. 1,00,000 each. The instruments, carrying a coupon of 7.25% per annum and a residual tenure of 1,057 days, are proposed to be listed on the Wholesale Debt Market segment of BSE.

The debentures are secured by a first pari-passu charge on the company’s book debts and loan receivables, with a minimum security cover equal to the outstanding debenture value. This issuance enhances the company’s long-term funding profile and supports its housing finance growth, while offering institutional investors a fixed-income avenue with scheduled annual interest payments until maturity in January 2029.