BAJAJHFL - Fundamental Analysis: Financial Health & Valuation

📈 Positive

• ROE of 13.5% and ROCE of 9.55% — indicates decent capital efficiency.
• PEG ratio of 0.90 — suggests earnings growth is reasonably priced.
• Quarterly PAT of ₹583 Cr — consistent profitability with 20.9% YoY growth.
• High trading volume — indicates strong market participation and liquidity.
• Stock up 16.2% over the past year — reflects positive investor sentiment.

⚠️ Limitation

• P/E ratio of 40.6 vs industry average of 19.3 — suggests overvaluation.
• Book Value of ₹24.0 vs current price of ₹110 — high P/B ratio.
• Debt-to-equity ratio of 4.11 — high leverage typical of housing finance companies, but adds financial risk.
• MACD negative at -0.51 — indicates weak short-term momentum.
• Dividend yield of 0.00% — no income for yield-focused investors.
• FII and DII holding declined — signals cautious institutional stance.

📉 Company Negative News

• Stock corrected ~25.7% from its 52-week high of ₹148.
• Minor decline in institutional holdings — FII (-0.13%), DII (-0.05%).

📢 Company Positive News

• Q2 PAT stable at ₹583 Cr — consistent earnings despite macro headwinds.
• Strong loan book growth and digital lending initiatives gaining traction.

🏭 Industry

• Housing finance sector benefits from rising urbanization and government incentives for affordable housing.
• Industry P/E of 19.3 — BAJAJHFL trades at a significant premium.
• Competition from banks and fintechs remains a key challenge.

🧾 Conclusion

• Business Model: Focused on retail housing finance with a growing digital footprint and parent group support.
• Competitive Advantage: Brand trust, scale, and access to low-cost capital via Bajaj group.
• Entry Zone: ₹100–₹108 — near recent support and 52-week low.
• Long-Term Holding: Suitable for moderate-risk investors seeking exposure to housing finance with a 3–5 year horizon.