Shares of Bajaj Housing Finance have been in constant focus since listing. After a bumper listing, the company’s stock has been witnessing a continuous decline for two trading days. Today, on Thursday, this stock also saw a decline of more than 10% and the stock reached a low of Rs 156.29 in intraday.
Selling was seen in this stock on NSE around 11.30 am. The buy quantity on this stock of the company was 4,01,916, while the sell quantity was 1,37,12,974. Last Wednesday, this stock fell by more than 4% and closed at Rs 173.69. However, on Wednesday, this stock also made a new high of Rs 188.45 in intraday. That is, this stock has climbed up to about 170% from the IPO price.
Why is the a decline in the shares of Bajaj Housing Finance?
After making a high of Rs 188.50, the stock of Bajaj Housing has now come down to the level of Rs 156.29. The main reason for this is the opinion of market analysts about Bajaj Housing. They believe that the valuation of Bajaj Housing stock is very high. Many other housing finance stocks are available at very low prices.
Now after listing, the profit of investors has come down to only 4.16 percent. However, experts say that this stock is very good for long-term investors and IPO investors should hold the stock by booking some profit.
What is the opinion of brokerage houses on Bajaj Housing?
Domestic brokerage firm PhillipCapital has started coverage of Bajaj Housing Finance with a target price of Rs 210. It says that many people prefer non-banking finance companies to take home loans. Especially for loan ticket sizes of Rs 50 lakh. Bajaj Housing, which is one of the most reputed NBFCs in the country, can benefit from this.
SMT co-founder and SEBI-registered research analyst VLA Ambala says that investors should retain 50 percent holding even after the stock falls to Rs 130. He has given a target price of Rs 300 to Rs 800 for the long term.
Other experts also opine
Avinash Gorakshakar, Head of Research, at Profitmart Securities, said, “Bajaj Housing Finance shares have rallied after a strong listing and now profit booking can be seen in it for the short term. Although the long-term prospects of the company and the housing finance industry in India are good, it will take time for Bajaj Housing Finance stock price stability.” Gorakshakar believes that the valuation of Bajaj Housing Finance shares looks expensive as per FY24 earnings. He advises that IPO investors should book partial profits in their holdings of Bajaj Housing Finance shares while suggesting that the ₹150 – 155 level can be a good entry-level for new investors.
What are the details of the share?
Bajaj Housing Finance shares made a stellar debut in the stock market on September 16. The stock was listed at ₹ 150 per share. This was at a premium of 114% over its IPO price band of ₹ 70 per share. Analysts believe that Bajaj Housing Finance IPO investors may book profits after the recent surge in stock price.
