Unlock Massive Gains? Bajaj Housing Finance Soars on ICICI Securities' BIG BUY Call!

Bajaj Housing Finance (BHFL) has demonstrated robust performance, outperforming industry growth with over 25% credit expansion since entering the mortgage business in FY17, maintaining excellent asset quality. A key growth driver has been its strategic move into project financing, filling a market gap between FY17 and FY22. BHFL has built an efficient customer acquisition model for retail housing loans, while expanding its non-housing loan portfolio, including Loan Against Property (LAP) and Loan against Rent Derivations (LRD), utilizing various sourcing channels beyond Bajaj Finance's existing customer base. The exit of a major Housing Finance Company (HFC) further created an opportunity for BHFL to capture market share. Impact This research report is bullish on Bajaj Housing Finance. The BUY rating and target price from ICICI Securities suggest confidence in the company's future growth and profitability, potentially driving positive investor sentiment and stock performance. Rating: 8/10 Difficult Terms Credit Growth: An increase in the total amount of loans and other credit that a financial institution has extended to its customers. Asset Quality: Refers to the quality of a company's loans and its ability to recover them. Pristine asset quality means very low levels of bad loans. Project Financing: A type of long-term financing used for large-scale construction or infrastructure projects, where the repayment of the loan relies on the cash flow generated by the project itself. Loan Against Property (LAP): A secured loan where individuals can pledge their property to obtain funds for various purposes. Loan Against Rent Derivations (LRD): A loan facility offered against the future rental income from a property. AUM (Assets Under Management): The total market value of all financial assets that a financial institution manages on behalf of its clients. PAT (Profit After Tax): The profit of a company after all taxes and expenses have been deducted. RoE (Return on Equity): A measure of a company's financial performance calculated by dividing net income by shareholders' equity. It indicates how effectively a company is using its shareholders' investments to generate profits. FY26E/FY27E: Fiscal Year 2026 Estimated and Fiscal Year 2027 Estimated. P/B (Price-to-Book ratio): A valuation ratio that compares a company's market capitalization to its book value. It is calculated by dividing the market price per share by the book value per share.