Bajaj Housing Finance shares tumble 11% in 2 days. Should you buy, sell or hold?
Bajaj Housing Finance ended its two-day rally as its stock encountered selling pressure, declining 11% in the last 2 days to a low of Rs 161 on BSE.
IPO investors who got the allotment of the issue, however, are still sitting on gains of 130%.
Despite this fall and high valuations, analysts believe that the company is very typically supported by the heritage of the Bajaj Group and the wealth creation that has happened inside the group, the management quality, the integrity as well as the industry that it functions into.
Post the stock’s listing, the domestic brokerage firm PhillipCapital has also initiated coverage on the stock with a target price of Rs 210.
“We believe BHFL is in a league of its own, with its focus on the ‘desirable’ sweet spot for many home loan (HL) aspirants – a ticket size of Rs 5mn. This way, it addresses c.65% of home-loan originations in India. It is increasingly focusing on Lease Rental Discounting (LRD), a high-yield segment that provides operating leverage with scale,” said PhillipCapital in its report.
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