Bajaj Housing Finance Limited (BHFL) has been making headlines ever since its IPO in September 2024. Backed by Bajaj Finance, the company is now seen as one of India’s fastest-growing housing finance players.
Its strong financial performance — high profitability, clean asset book, and steady AUM growth — has caught the eye of investors across the board.
As of October 14, 2025, BHFL’s share price stood at ₹107.45 on NSE. While the stock has shown some post-listing swings, its long-term story looks promising, with AUM up 26% year-on-year to ₹1.14 lakh crore and GNPA at just 0.29%. The big question now — could this be the next multibagger from the Bajaj family?
About the Company
Bajaj Housing Finance Limited (BHFL) is a registered housing finance company (HFC) under the National Housing Bank (NHB), incorporated in 2008 and operational since 2015. The company provides:
- Home loans for individuals and developers
- Loan against property
- Lease rental discounting and balance transfer loans
- Construction and project finance
BHFL leverages Bajaj Finance’s technology, data analytics, and customer network, giving it a competitive edge in customer acquisition, underwriting, and cost efficiency. It focuses primarily on prime borrowers, keeping asset quality superior compared to many peers.
Fundamental Analysis
Revenue & Profit Trends
| Fiscal Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | YoY Growth | EPS (₹) |
|---|---|---|---|---|
| FY2020 | 2,646 | 421 | — | 0.86 |
| FY2021 | 3,155 | 453 | +8% | 0.93 |
| FY2022 | 3,767 | 710 | +57% | 1.45 |
| FY2023 | 5,665 | 1,258 | +77% | 1.87 |
| FY2024 | 7,617 | 1,731 | +38% | 2.58 |
| FY2025 | 9,576 | 2,163 | +25% | 2.60 |
CAGR (FY2020–FY2025):
- Revenue: ~30%
- Profit: ~39%
- EPS Growth: ~28%
The consistent rise in both topline and bottomline clearly indicates financial stability and strong demand for housing finance products in India.
Valuation Metrics (FY2025)
| Metric | Value |
|---|---|
| P/E Ratio | ~41x |
| Price to Book | ~4.54x |
| ROE | 13.2% |
| ROA | 2.6% |
| EPS (TTM) | ₹2.72 |
While valuations appear premium, they are justified by BHFL’s strong growth visibility, low risk profile, and synergy with Bajaj Finance.
Balance Sheet Strength
- Total Assets (FY2025): ₹1,02,809 crore
- Loan Book: ₹99,513 crore (26% YoY growth)
- Debt-Equity Ratio: 4.11 (vs 5.65 in FY2024)
- CRAR: 28.24% (well above NHB minimum 15%)
- Gross NPA: 0.29%; Net NPA: 0.11%
The company’s balance sheet demonstrates solid leverage management and prudent capital allocation, ensuring steady scalability.
Shareholding Pattern (Post-IPO, FY2025)
| Category | Shareholding % |
|---|---|
| Promoters (Bajaj Finance Ltd) | 85% |
| Institutional Investors (FII/DII) | 8% |
| Retail & Others | 7% |
Promoter holding remains high, indicating strong group backing, though regulatory norms may gradually lower it over time.
Past Stock Performance
- IPO Price (2024): ₹78
- Listing Price: ₹123 (up ~57%)
- 2025 Peak: ₹140
- 2025 Low: ₹92
Despite near-term volatility, the stock’s long-term potential remains intact, supported by improving fundamentals and robust housing sector demand.
Bajaj Housing Finance Share Price Target 2025–2050
| Year | Minimum | Average | Maximum |
|---|---|---|---|
| 2025 | ₹120 | ₹160 | ₹225 |
| 2026 | ₹190 | ₹245 | ₹310 |
| 2027 | ₹270 | ₹340 | ₹420 |
| 2028 | ₹370 | ₹450 | ₹540 |
| 2029 | ₹480 | ₹590 | ₹720 |
| 2030 | ₹610 | ₹740 | ₹900 |
| 2035 | ₹1,400 | ₹1,700 | ₹2,050 |
| 2040 | ₹2,900 | ₹3,600 | ₹4,400 |
| 2045 | ₹5,400 | ₹6,900 | ₹8,500 |
| 2050 | ₹9,000 | ₹11,800 | ₹14,200 |
Bajaj Housing Finance Share Price Target for 2025 – 2050
Bajaj Housing Finance Share Price Target 2025–2026
With loan book growth of 25–30% and PAT up 25% YoY, BHFL is expected to continue compounding earnings. A re-rating in valuations could push prices toward ₹225–₹310 levels by 2026.
Bajaj Housing Finance Share Price Target 2027–2028
By 2028, housing loan demand, urbanization, and rate stabilization may accelerate BHFL’s market share. With steady NPAs and strong ROE, the stock could touch ₹540 in the upper range.
Bajaj Housing Finance Share Price Target 2029–2030
BHFL may evolve into a mid-large-cap financial powerhouse, targeting ₹900 levels, driven by diversification into affordable housing and digital lending platforms under Bajaj Group’s umbrella.
Bajaj Housing Finance Share Price Target 2035
Assuming 30% CAGR in profit growth, the share could reach around ₹1,700, with market cap potentially crossing ₹2 lakh crore.
Bajaj Housing Finance Share Price Target 2040–2050
By 2050, with India’s housing finance market projected to triple in size, BHFL’s consistent compounding could deliver multibagger returns, reaching ₹11,000+ in the base case — a 100x return from IPO levels.
Growth Drivers
- Expanding Housing Demand: Rising middle-class incomes and urbanization fueling home loan growth.
- Low NPA Ratio: Strong credit assessment system ensures stability.
- Parent Synergy: Leverages Bajaj Finance’s digital ecosystem and brand trust.
- Diversified Product Mix: Expanding into SME and developer loans.
- Technology-Driven Efficiency: Digital underwriting and AI-based risk management.
- Strong Capital Adequacy: Ensures funding stability and expansion flexibility.
Expert Views
- Motilal Oswal: Retains positive outlook, citing robust AUM growth and asset quality.
- Business Today: Predicts continued leadership among NBFC-HFCs due to low NPAs and brand strength.
- SKI Capital: Sees BHFL as a “structurally strong long-term compounder” akin to Bajaj Finance’s early phase.
Risks & Challenges
- Rising interest rates could dampen housing loan demand.
- Regulatory tightening by NHB or RBI may impact leverage.
- Valuation concerns at current price-to-book multiples.
- Competition from HDFC, LIC Housing, and PSU-backed lenders.
- Economic slowdowns affecting loan disbursements.
Investment Suitability
Ideal for:
- Long-term investors seeking steady compounding.
- Those confident in India’s housing market and Bajaj Group’s growth story.
- Investors with moderate-to-high risk tolerance.
Avoid if:
You expect quick short-term returns or cannot handle interim volatility.
FAQs
Q1. What will be Bajaj Housing Finance’s share price in 2030?
By 2030, Bajaj Housing Finance could trade between ₹610 – ₹900, depending on profitability and market conditions.
Q2. Can Bajaj Housing Finance reach ₹500 by 2028?
Yes. Based on current growth, it could comfortably surpass ₹500 by 2028 under aggressive expansion.
Q3. Is Bajaj Housing Finance good for long-term investment?
Yes, given its solid fundamentals, low NPAs, and strong parent support, BHFL appears well-positioned for long-term wealth creation.
Conclusion
Bajaj Housing Finance Limited is shaping up to be one of India’s most promising financial institutions in the housing space. With robust financial growth, disciplined risk management, and Bajaj Group credibility, it holds multibagger potential for long-term investors.
While short-term volatility and valuation concerns exist, the long-term compounding story remains intact — making BHFL a compelling addition for investors eyeing India’s housing finance boom till 2050.
