Bajaj Housing Finance shares slump more than 9%; here is why

The stock was trading at ₹136.7 apiece, down 9.1%, on the NSE. It was 8.8% lower at ₹137.4 on the BSE.

In its report, HSBC called Bajaj Housing Finance, a subsidiary of Bajaj Finance, a 'high-quality franchise' with diversified assets under management (AUM) mix, well-managed liquidity, and return on assets (ROA).

It said that Bajaj Housing Finance's current vauation at 5.5 times fiscal year 2026 price-to-book (PTB) and 44 times FY26 price-to-earnings (PTE), implies steep growth expectation in AUM and earnings.

In the September quarter of the financial year 2025, the housing finance firm crossed ₹1 lakh mark in AUM, marking a 26% year-on-year increase.

However, HSBC noted that the Bajaj group firm's RoA is at its peak, and its earnings per share (EPS) growth would slow because of slower growth in its AUM, normalised credit costs and pressure on its Net Interest Margins (NIMs).

Bajaj Housing Finance down 8.8% from listing price

From the listing price of ₹150, the scrip is down 8.8%.