Bajaj Housing Finance Ltd. shares are being eyed by market veterans as a long-term 'Buy,' with predictions of a substantial 60-70% upside potential. The optimism stems from the company's attractive current valuations and sustained healthy business expansion, despite the stock trading 1.89% higher at Rs 86.75 on Wednesday, still down 17.66% over the past six months.
Deven Choksey, Managing Director at DRChoksey FinServ Pvt, highlighted the company's robust Asset Under Management (AUM) book, which stands at approximately Rs 1.5 lakh crore. Choksey anticipates significant growth in the housing sector over the next 5-10 years, benefiting companies like Bajaj Housing Finance. He noted a moderation in the stock's valuation, with the price-to-book (P/B) ratio decreasing from around 6.5 times at Rs 181 to about 3.5 times at current levels. Concurrently, the company continues to achieve a compounding business growth rate exceeding 20%.
“The company is comfortably expanding its AUM book without stretching either the balance sheet or valuations,” Choksey stated, adding that the downside risk appears relatively limited. He believes that a three-year investment horizon could realistically yield a 60-70% upside from the present valuation.
Technical Outlook for Bajaj Housing Finance
From a technical perspective, analysts indicate a bullish trend for Bajaj Housing Finance shares, with the stock maintaining positions above key support levels. AR Ramachandran, a Sebi-registered research analyst at Tips2trades, identified strong support at Rs 82.7. He suggested that a daily close above the Rs 85.7 resistance level could propel the stock towards a near-term target of Rs 93.
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, echoed this sentiment, suggesting that a decisive move past Rs 87 could see the stock reach Rs 90. Patel projects a short-term trading range for the stock between Rs 83 and Rs 90.
Company Background
Bajaj Housing Finance, a constituent of the Bajaj Group, operates as a non-deposit-taking housing finance company (HFC) and is duly registered with the National Housing Bank (NHB). As of December 2025, promoters held a significant 86.70% stake in the company.