Bajaj Housing Finance Limited

As per financial performance, Bajaj Housing Finance Limited has posted total income / net profits of Rs 3,767.13 Cr / Rs 709.62 Cr (FY22), Rs 5,665.44 Cr / Rs 1,257.80 Cr (FY23), Rs 7,617.71 Cr / Rs 1,731.22 Cr (FY24) and Rs 2,208.73 Cr / Rs 482.61 Cr. So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 2.2 and average RoNW of 14.20% for last three fiscals. Issue is priced at a P/BV of 3.72 as per NAV of 18.8 as on 30.06.24. If we attribute latest earnings of FY23, FY24, TTM and annualised FY25 on fully diluted equity post issue, then asking price is at a P/E of around 46.35, 33.67, 33.27 and 30.20 respectively, which looks fairly priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, seven lead managers are associated with this IPO, and have handled around 168 IPOs in last three fiscals. As per financials, Bajaj Housing Finance Limited has shown good growth, RoNW is 14.70% and P/E is respectively 46.35, 33.67, 33.27 and 30.20 as per FY22, FY23, TTM and annualised FY24 earnings. So, issue looks fully priced with good brand name Bajaj Group. Company is a retail-focused HFC, which is very competitive and fragmented business segment. The growth of the sector will be good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Bajaj Finance Limited
• 2 Bajaj Finserv Limited