Bajaj Housing Finance FY24 Financial Results: Revenue and PAT Breakdown
Bajaj Housing Finance Ltd. (BHFL) continues to capture the attention of investors and analysts alike as it rides a wave of positive sentiment following its recent IPO. The company made a remarkable debut on the stock exchanges, listing at ₹150, which is a staggering 114.2% premium over its IPO price of ₹70. This strong performance has led to increased speculation about its future share price trajectory and market position.
Main Points
As of the latest updates, Bajaj Housing Finance shares are trading around ₹162.70, reflecting a slight decline from previous highs but still showing impressive gains since the IPO. The stock has seen a remarkable rise of approximately 159% from its issue price, positioning it among the top performers in the market this year. Analysts suggest that despite recent fluctuations, the overall outlook remains bullish, with expectations of further price increases in the coming weeks.
The IPO itself was oversubscribed by more than 63 times, indicating robust demand from retail and institutional investors. This overwhelming response underscores strong confidence in the company’s business model and growth prospects.
Bajaj Housing Finance has demonstrated solid financial performance over recent years, with significant growth in revenue and profits. For FY24, the company reported revenues of ₹7,617.31 crore and a profit after tax (PAT) of ₹1,731.22 crore. The total assets have also seen substantial growth, reaching ₹80,827 crore as of March 31, 2024.
Analysts project that Bajaj Housing Finance could achieve a balance sheet exceeding ₹2 lakh crore within three years, driven by a compounded annual growth rate (CAGR) of around 30%. This growth is supported by the company’s focus on salaried home loans and superior asset quality, which has resulted in a net non-performing assets (NPA) ratio of just 0.1%, significantly lower than many competitors.
Brokerages are optimistic about Bajaj Housing Finance’s future performance. PhillipCapital has initiated coverage with a ‘Buy’ recommendation and set a target price of ₹210 per share, suggesting a potential upside of 27% from current levels. They highlight the company’s focus on salaried customers and its ability to maintain low credit costs as key factors driving this bullish outlook.
Other analysts also echo similar sentiments. Narinder Wadhwa from SKI Capital believes that Bajaj Housing Finance could become comparable to established players like HDFC due to its strong management pedigree and asset quality.
Morgan Stanley has noted that Bajaj Housing Finance’s stock is currently trading at a price-to-book ratio of 6.1 times estimated FY26 figures but remains an attractive investment given its growth potential and market positioning.
The overall market sentiment surrounding Bajaj Housing Finance remains positive despite some recent profit booking by investors. The stock’s high valuations have led to caution among some analysts who recommend waiting for potential price corrections before making new investments. However, many believe that any dips in price could present buying opportunities for long-term investors.
The company’s strategic focus on expanding its presence in tier II and tier III cities through technology-driven solutions is expected to enhance customer access and drive further growth.
