Bajaj Housing Finance shares a long-term 'Buy' with 60-70% upside potential?

Shares of Bajaj Housing Finance Ltd were last seen trading 1.89 per cent higher at Rs 86.75 in Wednesday's trade. Despite the uptick, the stock remains down 17.66 per cent over the last six months.

A market veteran believes the stock's current valuations appear attractive, supported by the company's continued healthy business growth.

Deven Choksey, Managing Director at DRChoksey FinServ Pvt, said, "The company has an AUM book of roughly Rs 1.5 lakh crore. We believe the housing sector is likely to be among the biggest beneficiaries over the next 5–10 years, considering the amount of money consumers and investors are holding."

He added, "When the stock was at Rs 181, its valuation was around 6.5 times price-to-book (P/B). At current levels, the valuation has moderated to around 3.5x P/B. At the same time, the company continues to grow its business at a compounding rate of over 20 per cent."

Choksey also said, "In my view, the company is comfortably expanding its AUM book without stretching either the balance sheet or valuations. I believe the downside risk appears relatively limited. If one takes a three-year view, a potential upside of around 60–70 per cent from the current level seems distinctly possible, given the valuation at which the stock is available."

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated, "The counter looked attractive at current valuations. One can start buying this stock with a medium- to long-term horizon."

On the technical front, some analysts indicated that the stock remains bullish and is trading above key support levels.

AR Ramachandran, Sebi-registered research analyst at Tips2trades, said, "Bajaj Housing's stock is bullish on daily charts with strong support at Rs 82.7. A daily close above the resistance of Rs 85.7 could lead to an upside target of Rs 93 in the near term."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, said a decisive move above Rs 87 could push the stock towards Rs 90, with an expected short-term trading range between Rs 83 and Rs 90.

Bajaj Housing Finance, part of the Bajaj Group, is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank (NHB). As of March 2026, promoters held an 86.70 per cent stake in the company.