Bajaj Housing shares hit 10% upper circuit a day after bumper listing
Source: Business Standard
At around 9:48 AM, shares of Bajaj Housing Finance were up 8.13 per cent at Rs 178.4 per share. BSE Sensex at around the same time traded 7.46 points lower at 82,981.32.
On Monday, Bajaj Housing Finance shares were listed at Rs 150 on the BSE, and the National Stock Exchange (NSE), surging 114.28 per cent above the IPO issue price of Rs 70.
Brokerage PhilipCapital initiated coverage on Bajaj Housing Finance with a ‘Buy’ rating. The brokerage sees an upside potential of 27 per cent from Monday’s closing and gave a target of Rs 210 per share.
Analysts at PhillipCapital believe that Bajaj Housing Finance has a higher return ratio than its peers as it sources around 40 per cent of its home loans from its parent company, Bajaj Finance’s customers. Additionally, Bajaj Housing gives around 90 per cent of its home loans to salaried customers which reduces costs leading to a lower expense ratio in the medium term and augments its risk-adjusted spreads. READ MORE
Bajaj Housing Finance is a subsidiary of Bajaj Finance — one of the most diversified NBFCs in the Indian market. Headquartered in Pune, Bajaj Housing Finance offers finance to individuals as well as corporate entities for the purchase and renovation of homes or commercial spaces. It also provides loans against property for business or personal needs, as well as working capital for business expansion purposes.
Bajaj Housing Finance also offers finance to developers engaged in the construction of residential and commercial properties, as well as lease rental discounting to developers and high-net-worth individuals.
First Published: Sep 17 2024 | 9:52 AM IST
