Bajaj Housing Finance shares dive 7% today; should you consider buying?

Shares of Bajaj Housing Finance Ltd slumped 6.62 per cent in Friday's trade to hit a low of Rs 123.50. The stock was last seen trading 5.18 per cent down at Rs 125.40. At this price, it has shed 1.49 per cent on a year-to-date (YTD) basis.

The shadow lender recorded a 54 per cent year-on-year (YoY) growth in its profit after tax (PAT) for the March 2025 quarter. During the quarter under review, profit came at Rs 587 crore as against Rs 381 crore in the corresponding period last year (Q4 FY24).

The non-bank financial company's (NBFC's) net interest income rose around 24 per cent to Rs 2,374 crore in Q4 FY25 compared to Rs 1,908 crore in the year-ago period. Total expenses climbed nearly 19 per cent to Rs 1,788 crore from Rs 1,508.28 crore in the same quarter a year ago.

As of March 31, 2025, gross NPA (non-performing asset) and net NPA stood at 0.29 per cent and 0.11 per cent, respectively, as against 0.27 per cent and 0.10 per cent in Q4 FY24.

A few market experts largely remained positive on the counter. One of them said Bajaj Housing is offering a decent 'Buy' from a long-term view.

"Bajaj Housing Finance is offering a good buying option from a long-term investment view of view. We believe it offers good prospects at present. Investors will need to have a lot of patience and stay invested as the stock is not cheap at this point of time on the valuation front. You need to buy it, wait and then probably get the benefit out of the investment period," Deven Choksey, MD of DR Choksey FinServ, told Business Today.

"The stock has potential to hit an upside target of Rs 150 in the near term. Keep a stop loss placed at Rs 128 for this trade," said Ravi Singh, SVP - Retail Research at Religare Broking.

"Support will be at Rs 120 and resistance at Rs 137. A decisive move above Rs 137 level may trigger a further upside towards Rs 142. The expected trading range will be between Rs 120 and Rs 142 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

The company continues to leverage technology while digitalising various processes and new initiatives, such as e-agreement and online customer onboarding, have shown encouraging results for them, said Rajesh Sinha, Senior Research Analyst at Bonanza Group. On the contrary, Sinha added that the high-cost ratio and yield compression due to increased competition were negative for it.

Technically, the counter traded lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 61.15. A level below 30 is defined as oversold while a value above 70 is considered overbought.

Bajaj Housing Finance -- a part of Bajaj Group -- is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank (NHB). As of March 2025, promoters held an 88.75 per cent stake in the Bajaj Group entity.