HSBC Slashes Bajaj Housing Finance’s Target Price at Rs 90

Following Q3 results, brokerage form HSBC has maintained “reduce” rating on Bajaj Housing Finance Ltd, while cutting the target price of the stock.

Shares of Bajaj Housing Finance are set to fall to the levels of ₹90 as compared to the earlier target price of ₹110, HSBC noted. Notably, the revised target price already implies a 15% downside for Bajaj Housing Finance shares. The stock has already fallen 44% from its post-listing high of ₹188.

During the after market hours on January 27, Bajaj Housing Finance reported a 25% increase in its Net Interest Income to ₹806 crore YoY, while net profit surged to ₹548 crore in the December quarter. Gross NPA ratio remained unchanged at 0.29%, compared to the previous quarter. Meanwhile, net interest margins remained healthy at 4%.

The brokerage expects Bajaj Housing Finance’s Earnings Per Share (EPS) growth to slow down due to pressure on its Assets Under Management (AUM) growth.

HSBC slashed its financial year 2025-2027 Earnings Per Share (EPS) estimates by 3% to 4%.

Close to 50% of the analysts tracking shares of Bajaj Housing Finance have maintained a “sell” rating on the stock. About 3 of them have issued a “buy” rating, while two have recommended to “hold”.

As of 12:57 pm, shares of Bajaj Housing Finance Ltd are trading at ₹111.92, up 5.84%.