Bajaj Housing Finance Limited

Financial Services — Mortgage Finance · NSE

₹83.40−₹0.38 (−0.45%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Bajaj Housing Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bajaj Housing Finance Limited provides housing finance services in India. It offers finance to individuals and corporate entities for the purchase and renovation of homes or commercial spaces.

IndustryMortgage Finance

SectorFinancial Services

Annual revenue₹10,839 Cr

How does it make money?

Turns over ₹10,839 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

14 analysts covering the stock expect revenue to grow about 19.2% and earnings to grow about 16.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.2%

Est. earnings growth+16.5%

Analysts14

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +98% while net margin moved +3% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+98%

Margin effect+3%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.72 — historically steadier than the index
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

78/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

56/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

24.7x

2Y Median

41.2x

27 monthly readings · mean 44.2x · range 26.7x–74.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 2y median of 41.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 46% above the peer median of 17.0x.

vs. its own history

Cheap

41.2x median over 27 months · -40%

vs. sector peers

Expensive

17.0x median of 4 peers · +46%

vs. generic bands

Fair

15x–35x

EV/EBITDA

49.6x

PEG

0.93

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 1648% against revenue growth of 98% — customers are taking longer to pay.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 40% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 46% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 19% a year✓ 25.5% CAGR
Latest reported year was 17.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 32.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 10%✓ 12.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 41.2x✓ 24.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹69,464 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

24.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.89x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.37

Profitable

Profitable on a per-share basis

ROE

12.4%

Moderate

Moderate capital efficiency

ROCE

3.3%

Weak

Low return on total capital employed

Debt/Equity

4.92x

High

High leverage

Revenue Growth (YoY)

17.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹19,943 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

19.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

2.2%

Weak

Assets generate little profit

Operating Margin

81.0%

Good

Healthy core-business profitability

Net Margin

63.3%

Good

Strong bottom-line conversion

Current Ratio

311.16

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.72

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

83.0 / 83.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,481 Cr	₹7,329 Cr	₹9,179 Cr	₹10,839 Cr	+25.5%
EBITDA	₹1,738 Cr	₹2,116 Cr	₹2,712 Cr	₹3,490 Cr	+26.2%
EBITDA Margin	31.7%	28.9%	29.5%	32.2%	—
PAT (Net Profit)	₹1,258 Cr	₹1,731 Cr	₹2,163 Cr	₹2,560 Cr	+26.7%
EPS	₹1.51	₹2.08	₹2.67	₹3.07	+26.7%
ROE	12.0%	14.2%	10.8%	11.4%	—
ROCE	3.3%	3.3%	3.3%	3.3%	—
Total Debt	₹53,570 Cr	₹68,945 Cr	₹82,034 Cr	₹1.04 L Cr	+24.6%
Free Cash Flow	-₹14,366 Cr	-₹14,643 Cr	-₹17,116 Cr	-₹19,943 Cr	—

🟢 Revenue has grown at 25.5% a year over 3 years.

🟢 EBITDA has grown at 26.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 32.2% over 3 years.

🟢 PAT (Net Profit) has grown at 26.7% a year over 3 years.

🟢 EPS has grown at 26.7% a year over 3 years.

🟡 ROE has held roughly flat at 11.4% over 3 years.

🟡 ROCE has held roughly flat at 3.3% over 3 years.

🔴 Total Debt has grown at 24.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.27 L Cr

Total Liabilities

₹1.05 L Cr

Cash & Equivalents

₹162 Cr

Operating Cash Flow

-₹19,895 Cr

Capex

-₹48 Cr

Shareholding (proxy)

Institutional Holding

1.1%

Insider Holding

86.7%

Analyst Consensus

Recommendations

7 Buy · 6 Hold · 4 Sell

Target Price (Mean)

₹92.76

+11.2% vs CMP

Target Range

₹76 – ₹125

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive2 mixed3 general

Bajaj Housing Share Price - Live NSE: BAJAJHFL Stock Price & Chart

Upstox, 17 Oct

Bajaj Housing Finance Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 26 Aug

Smart Finsec enters ₹15.60 crore loan deal with Bajaj Housing Finance

scanx.trade, 18 Oct

Bajaj Housing Finance Q2 Results: PAT rises 18% YoY to Rs 757 crore, AUM grows 25%

The Economic Times, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Bajaj Housing Finance Q2 Results: Profit Rises 18%; AUM Grows 25%

NDTV Profit, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bajaj Housing Finance Share Price Rises in Streak Trade

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 4 tripwires holding · see Key things to watch ↑