Bajaj Housing Finance Share Price Near Record Low After Promoter Stake Sale

As of 8 December 2025, Bajaj Housing Finance Ltd (NSE: BAJAJHFL) is trading around ₹94 per share, barely above its 52‑week low and far below its 2025 highs. The slide has been driven less by deteriorating fundamentals and more by a promoter stake sale that has flooded the market with supply, even as the company continues to grow its loan book and profits at a healthy clip. ^[1]

Where the stock stands today

At mid‑session on 8 December 2025, Bajaj Housing Finance was quoting at about ₹93.9–94.1, down roughly 1.5–2% intraday. Moneycontrol data shows a day range of ₹93.8–96.0 and a 52‑week range of ₹93.8–145.7, with an all‑time high of ₹188.5 since listing. ^[2]

Over the last year, the stock’s performance has been distinctly negative:

1 week: –10.4%
1 month: –14.5%
3 months: –16.6%
1 year: about –35% ^[3]

That makes Bajaj Housing Finance one of the notable underperformers in the housing finance basket over the past twelve months, especially given that broader housing finance peers have delivered positive returns over the same period. ^[4]

From blockbuster IPO to supply overhang

Bajaj Housing Finance listed in September 2024 after a heavily subscribed IPO in the ₹66–70 price band, raising over ₹6,500 crore on the NSE and BSE. ^[5]

Even after the sell‑off, the stock still trades above its IPO issue price, but the narrative has shifted sharply: the market has gone from euphoric rerating to worrying about how much more stock the promoter might sell.

What triggered the latest crash in Bajaj Housing Finance?

The 2% promoter stake sale

The inflection point for the current downtrend was 2 December 2025.

Promoter Bajaj Finance Ltd sold 16.66 crore shares, representing about 2% of Bajaj Housing Finance’s equity, via a block deal at an average price of around ₹95.3 per share, raising about ₹1,588 crore. ^[6]
The block was executed at roughly a 9% discount to the previous close (~₹104.5), immediately putting pressure on the stock. ^[7]

Post this transaction, Bajaj Finance’s stake has declined from 88.70% to around 86.7%, still well above the regulatory minimum but moving in the direction of the 25% public shareholding requirement over time. ^[8]

52‑week low and “all‑time low” headlines

The market reaction was swift:

On 2 December, Bajaj Housing Finance shares fell about 8–9% intraday, hitting a new 52‑week low around ₹94.9–95 on the exchanges. ^[9]
HDFC Sky noted that the stock was down 7.6% intraday, making a fresh 52‑week low at ₹95, with heavy volumes and speculation around promoter Selling up to 2.35% via block deals. ^[10]
MarketsMojo wrote that the stock has now “reached an all‑time low”, closing just 0.3% above its 52‑week low of ₹94.9, and has been in a “prolonged downtrend” versus both sector and index. ^[11]

A separate Economic Times piece from 4 December summed it up: the stock has slid about 10% in five days, is approaching its IPO price, and is down roughly 35% from its December peak, as investors worry about the risk of continued promoter supply despite strong operating performance. ^[12]

International coverage also picked it up. A Reuters market wrap highlighted Bajaj Housing Finance among financials dragging the indices, noting an ~8% fall after the discounted 2% stake sale announcement. ^[13]

In short, the sell‑off is technical and supply‑driven: the business hasn’t broken, but the market is struggling to absorb a large block of stock at a time when sentiment on valuations was already weak.

The underlying business: growth still looks robust

Behind the stock price drama, Bajaj Housing Finance’s core business has continued to grow quickly.

Who is Bajaj Housing Finance?

Incorporated in 2008, Bajaj Housing Finance is a non‑deposit‑taking housing finance company (HFC), registered with the National Housing Bank.
It is a 100% subsidiary of Bajaj Finance Ltd, one of India’s largest and most diversified NBFCs. ^[14]
The company focuses on mortgage lending – home loans, loans against property, lease rental discounting and developer finance – and serves salaried, self‑employed and affordable segments. Groww notes that the company has surpassed ₹1,00,000 crore in AUM and is targeting roughly 5% share of new home loan disbursements over the medium term (currently sub‑2.5%). ^[15]

Q2 FY26 scorecard: growth + asset quality

The latest numbers, from the Q2 FY26 (September 2025) investor presentation and press release, are strong almost across the board: ^[16]

Scale and growth

Assets under management (AUM): ₹1,26,749 crore
AUM growth:24% YoY (AUM was ~₹1,02,569 crore in Q2 FY25)
Quarterly AUM accretion: +₹6,329 crore in Q2 FY26 (vs ₹5,497 crore in Q2 FY25)
Disbursements: ₹15,914 crore in Q2 FY26, up 32% YoY

Portfolio mix (by AUM):

Home loans: 55.1%
Loans against property: ~21–29%
Lease rental discounting: ~10–12%
Developer finance and others: balance ^[17]

Profitability and margins

Net interest income (NII): ₹956 crore, up 34% YoY
Net total income: ₹1,097 crore, up 22% YoY
Net interest margin (NIM): ~4.0% (stable YoY)
Profit before tax (PBT): ₹833 crore, up 18% YoY
Profit after tax (PAT): ₹643 crore, also +18% YoY
Return on assets (ROA):2.3% (annualised)
Return on equity (ROE):12.2% for Q2 FY26 (down from 13.0% a year ago, largely due to fresh equity capital raised in FY25 and the absence of one‑off overlay releases). ^[18]

Funding and efficiency

Cost of funds (CoF):7.4% in Q2 FY26, down from 7.9% in Q2 FY25, reflecting falling market rates and refinancing at lower costs. ^[19]
Borrowing mix: about 37% from banks, 54% from money markets, and 9% from NHB, implying diversified funding. ^[20]
Opex to net total income:19.6%, improving from 20.5% a year earlier, with digital initiatives like 90%+ penetration of e‑agreements and online onboarding helping cost efficiency. ^[21]

Asset quality and capital

Gross NPA (GNPA):0.26%
Net NPA (NNPA):0.12%
Credit cost: 0.18% (annualised) vs 0.02% in Q2 FY25 (0.14% after normalising for overlay release), still very benign.
Stage‑2 assets: 0.34% of the book; Stage‑3 provision coverage ~55.6%.
Capital adequacy ratio (CRAR):26.1%, vs regulatory minimum of 15%; Tier‑1 alone is 25.6%.
Net worth: ~₹21,170 crore
Leverage: Debt‑to‑equity around 4.4x, which is typical for a fast‑growing housing finance business. ^[22]

Put simply: growth is high, margins are healthy, NPAs are extremely low, and capital is abundant. The fundamental story remains one of a fast‑growing, relatively clean mortgage lender backed by a strong parent.

So why is the market punishing the stock?

Valuation hangover

Even before the recent fall, Bajaj Housing Finance was trading at what many analysts considered “rich” valuations:

MarketsMojo’s Q2 FY26 review pegged the stock at around 42x trailing earnings and 4.57x book value, versus a housing‑finance sector P/E closer to 24x and average P/B around 1.5x. ^[23]
It highlighted that ROE (10.8–13%), while decent, is not extraordinary for a capital‑intensive lender and doesn’t fully justify a multiple that is 2–3x richer than most peers. ^[24]

After the sell‑off, valuations have cooled, but they are still not “cheap” on conventional metrics:

Economic Times data shows a trailing P/E of ~33x and P/B of ~4x at the current price, with EPS (TTM) at ₹2.83 and book value per share around ₹23.9. ^[25]
Groww’s snapshot is similar, with P/E ~33–34x, P/B ~3.7–3.8x, ROE ~11.1% and debt‑to‑equity ~4.44x, versus an industry P/E around 26x. ^[26]
Moneycontrol’s “MC Insights” module characterises the stock as a “low financial strength, high growth trend stock priced at expensive valuations”, with an internal score of 44/100. ^[27]

MarketsMojo now rates the stock a “Sell” with a score of 44/100, flagging: expensive valuation, consistent underperformance versus both Sensex and the housing finance sector, declining institutional ownership, and a bearish technical trend. It notes that over one year, the stock has underperformed the sector by more than 30–35 percentage points. ^[28]

In other words, Bajaj Housing Finance is a quality franchise that the market might simply have overpaid for in 2024–early 2025, and the current correction is a painful repricing of expectations.

Institutional selling and low free float

Another tension in the stock is the ownership structure:

Promoter Bajaj Finance still holds over 86% after the December stake sale. ^[29]
MarketsMojo’s data shows foreign institutional investor (FII) holdings falling from 1.68% to 0.86% between September 2024 and September 2025.
Mutual fund holdings dropped from 1.36% to 0.33% in the same period. ^[30]

So you have a stock that:

Has limited free float,
Is trading at a premium valuation, and
Is seeing institutions steadily reduce exposure, while retail ownership rises.

Add a large promoter sale (with more possible by February 2026 to meet minimum public shareholding norms), and you get exactly the kind of supply overhang that scares short‑term investors.

How are analysts and models viewing Bajaj Housing Finance now?

Street consensus: “Hold” with modest upside

Despite the volatility, mainstream analyst consensus hasn’t turned apocalyptic.

Economic Times’ consensus data shows a “Hold” recommendation based on 9 covering analysts. ^[31]
The same dataset lists a median 12‑month target price of ₹108.44, with a high estimate of ₹140 and a low of ₹82. ^[32]
From the current price band around ₹94, that median target implies roughly 15–20% upside, while the low estimate suggests potential downside of about 10–15%.

Trendlyne, which aggregates broker targets, shows a 1‑year target near ₹110, implying roughly 17% upside, again based on double‑digit analyst coverage. At the same time, its model tags Bajaj Housing Finance as an “expensive underperformer”, with bearish technicals and weak valuation scores, even as the long‑term growth metrics look solid. ^[33]

Quant and fundamental models: quality business, awkward price

Several independent analytics platforms are converging on a similar narrative:

Moneycontrol: Score of 44/100, stock flagged as near 52‑week low, below the 200‑day moving average, with high growth but expensive valuations. ^[34]
MarketsMojo: Calls it a “quality business at an expensive price”, rating it Sell, and explicitly suggesting fresh investors wait for levels closer to ₹85–90 to get a more favourable risk‑reward. ^[35]

None of these are personalised recommendations, but they do capture the “good company, tricky stock” dilemma.

Macro backdrop: RBI rate cuts and housing demand

The macro context around Bajaj Housing Finance has turned incrementally supportive on rates, but competitive on pricing.

On 5 December 2025, the Reserve Bank of India cut the repo rate by 25 bps to 5.25%, signalling the start of an easing cycle amid what it calls a “goldilocks” combination of strong growth and low inflation. ^[36]
RBI officials and recent commentary indicate system‑wide credit growth around 10–11%, with home loan growth near 11% and personal loans at ~14%. ^[37]

For a housing finance company like Bajaj Housing Finance, this environment cuts both ways:

Positives: Lower policy rates can stimulate housing demand, boost affordability, and support higher disbursement growth. Mortgage‑heavy lenders usually benefit from such cycles.
Negatives: As old borrowings reprice lower, cost of funds falls (already evident in Bajaj Housing Finance’s CoF dropping from 7.9% to 7.4%), but competition forces lenders to cut lending rates as well. That can compress margins unless offset by scale and operating efficiencies. ^[38]

So far, Bajaj Housing Finance has kept its NIM around 4% while growing AUM in the mid‑20s and improving cost ratios – a decent outcome in a crowded prime home‑loan market. ^[39]

Key risks and triggers to watch

For investors tracking Bajaj Housing Finance from here, the near‑term story is less about accounting and more about flow and sentiment.

1. Further promoter stake sales

Disclosures suggest that Bajaj Finance plans to offload up to 2% of its stake between 2 December 2025 and 28 February 2026, partly to move towards minimum public shareholding norms. ^[40]

The first 2% tranche has already created a sharp drawdown. If markets perceive further blocks as:

Coming at steep discounts, or
Being absorbed poorly by institutions,

the stock could remain under pressure regardless of fundamentals.

2. Valuation re‑anchoring

Even at current levels:

P/E in the low‑30s
P/B around 4x

is still a premium to both traditional HFCs (like LIC Housing) and some newer high‑growth players. ^[41]

The market will likely want to see either:

ROE trend up closer to 15%+, or
The stock de‑rate further to a more comfortable earnings or book multiple.

3. Asset quality in a lower‑rate, high‑growth world

Right now, Bajaj Housing Finance’s GNPA of 0.26% and NNPA of 0.12% are exceptionally low, and credit costs are benign. ^[42]

If, however, rapid growth in newer segments (LAP, developer finance, affordable housing) causes any uptick in delinquencies, the market could react sharply, especially given the stock’s premium history.

4. Institutional flows

The steady decline in FII and mutual fund holdings over FY25 has coincided with the stock’s underperformance. ^[43]

A stabilisation or reversal – i.e., visible institutional buying on further dips – would be an important sentiment signal.

5. Execution on growth and technology

With Bajaj Finance itself doubling down on AI‑driven lending and automation, group strategy is clearly leaning into scale and efficiency. ^[44]

Bajaj Housing Finance’s own digital push (94%+ e‑agreement penetration, 93% online onboarding) is already improving opex, and continued tech‑led underwriting and collections will be key to sustaining high growth without compromising on asset quality. ^[45]

Bottom line: high‑quality lender, sentiment heavy stock

Pulling it all together:

Business quality: Strong – fast‑growing mortgage lender, pristine asset quality so far, very high capital adequacy, and backed by one of India’s best‑known NBFCs. ^[46]
Numbers: Q2 FY26 delivered 24% AUM growth, 18% PAT growth, NIM around 4%, and GNPA 0.26% – hardly the profile of a broken franchise. ^[47]
Valuation: Has cooled from >40x to the low‑30s P/E, but still above sector averages on most metrics. ^[48]
Market mood: Cautious – consensus rating is “Hold”, quant models skew negative on valuation and momentum, and institutional ownership has been drifting down. ^[49]
Near‑term overhang: The promoter’s remaining stake‑sale window up to February 2026 is the single most important technical factor keeping the stock under pressure. ^[50]

For now, Bajaj Housing Finance sits in that awkward category that many analysts describe in some form as: “great company, uncomfortable price, and messy technicals.”

Whether it ultimately turns into a long‑term wealth compounder or a cautionary tale about overpaying for growth will likely depend less on the next quarter’s numbers and more on three slow‑burn variables: how far valuations correct, how quickly ROE climbs, and how smoothly the promoter stake gets diluted into stronger hands.

References

Bajaj Housing Finance Share Price Near Record Low After Promoter Stake Sale – What Next for NSE: BAJAJHFL?