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Bajaj Housing Finance (BAJAJHFL) Fair Value & Analysis

Financial Services · IN · Market cap ₹726B (≈ $7.7B) · ISIN INE377Y01014

What is Bajaj Housing Finance really worth?

BH Bajaj Housing Finance BAJAJHFL · NSE
Price₹83.08
Fair Value₹39.96
Upside−51.9%
Quality57/100

A solid business, but trading 108% above our fair value of ₹39.96.

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Strengths

Healthy Growth (revenue 5y +28.7 %/yr)
Highly profitable · 61.5% net margin
Wide moat 69/100

Risks

!High debt · generates free cash flow
!Mixed vs. peers (7/13)
!Evidence only low, so the estimate is less certain
Evidence: Low Range ₹29.97 – ₹49.95

Fair value as of: Aug 28, 2026

From 10 valuation models · updated 8 days ago

Share price −4.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹49.95). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (2 years)

₹181.50 ₹73.09 Fair Value ₹39.96 Sep 2024 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 28, 2026.

How to read this chart

24‑month range ₹73.09 – ₹181.50 · fair‑value band ₹29.97 – ₹49.95 · the ₹83.08 price screens above the ₹39.96 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 28, 2026.

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Analysis

Bajaj Housing Finance (BAJAJHFL) currently trades at ₹83.08, while our model-based Fair Value estimate is ₹39.96, implying the stock looks roughly 107.9% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Financial Services sector. Bull case: the Earnings-Based group reads highest at a median of ₹107.59 per share, and 2 of the 7 models we run sit above the ₹83.08 price. Bear case: the Asset-Based group reads lowest at ₹18.12, and 5 of the 7 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Bajaj Housing Finance generated revenue of ₹41.6B at a net margin of 61.5%. Revenue grew 42.3% year over year. It earns a return on equity of 12.1%. Net debt stands at ₹1.0T. Fundamentals as of Aug 28, 2026

Our scenario range runs from ₹29.97 (bear case) to ₹49.95 (bull case); at ₹83.08, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 35% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −5% fair-value upside, at −52%, BAJAJHFL screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹1.33 per share, which is 3.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF best evidence ₹56.65 ₹214.70 73
Owner Earnings ₹147.97 71
5Y P/E Exit ₹27.65 65
All 10 models by family
DCF Models
Owner Earnings ₹147.97 71
5Y P/E Exit ₹27.65 65
10Y P/E Exit ₹75.80 59
Earnings-Based
Graham-Dodd ₹20.90 ₹145.78 ₹204.58 61
Lynch FV ₹75.32 ₹107.59 ₹139.87 59
Multiples
P/E Multiple ₹29.97 ₹39.96 ₹49.95 63
P/B Multiple ₹28.39 ₹37.86 ₹47.32 55
Asset-Based
NCAV (Graham) ₹13.52 ₹18.12 ₹27.04 54
Growth DCF
Growth DCF best evidence ₹56.65 ₹214.70 73
Economic Profit
Residual Income ₹25.03 ₹29.69 ₹65.22 63

Widest divergence: Earnings-Based (₹107.59) versus Asset-Based (₹18.12). Highest evidence: Growth DCF (73).

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Key figures & financial health

P/E ratio 27.1
P/S ratio 6.21 P/E × margin
EPS (TTM) ₹3.07 price ÷ EPS = P/E 27.1
Net margin 23.0% FY2026
Return on equity 12.1% TTM
Return on assets (EBIT) 2.5% avg 5y
More key figures
Profitability
Operating margin 80.7% TTM
Growth
Revenue (TTM) ₹41.6B TTM
Revenue growth (YoY) +42.3% 3y avg +26.7%
EPS growth (YoY) +14.4%
Balance sheet & cash flow
Free cash flow ₹43.0B FY2026
Net debt ₹1.0T FY2026 · ≈ 24.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 28, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 51 · Market factors (momentum, volatility) 42

Profitability 35
Margins and returns on capital today
Quality Growth 66
Are margins and returns improving?
Cashflow 95
Earnings quality: real cash, not paper profit
Fin. Strength 0
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 86
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 12
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Bajaj Housing Finance Limited provides housing finance services in India. It offers finance to individuals and corporate entities for the purchase and renovation of homes or commercial spaces. The company also provides loans against property for business or personal needs, as well as working capital for business expansion purposes.

Full company description

Bajaj Housing Finance Limited provides housing finance services in India. It offers finance to individuals and corporate entities for the purchase and renovation of homes or commercial spaces. The company also provides loans against property for business or personal needs, as well as working capital for business expansion purposes. In addition, it offers finance to developers engaged in the construction of residential and commercial properties, as well as lease rental discounting to developers and high-net-worth individuals; real estate investment trusts REITs, and sovereign wealth funds and corporations. Bajaj Housing Finance Limited was formerly known as Bajaj Financial Solutions Limited and changed its name to Bajaj Housing Finance Limited in November 2014. The company was incorporated in 2008 and is headquartered in Pune, India. Bajaj Housing Finance Limited operates as a subsidiary of Bajaj Finance Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Bajaj Housing Finance reported revenue of ₹112B in FY2026 versus ₹36.9B in FY2022, a compound +31.9%/yr. Reported net income was ₹25.6B in FY2026, compounding +37.8%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹112B
Latest YoY
+21.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+28.7%
Avg. revenue growth/yr (9Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+143.5%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+27.0% (27.0 + 0.0)
Revenue +31.9%/yr
FY22 ₹36.9B
FY23 ₹54.8B
FY24 ₹73.3B
FY25 ₹91.8B
FY26 ₹112B
Net income +37.8%/yr
FY22 ₹7.1B
FY23 ₹12.6B
FY24 ₹17.3B
FY25 ₹21.6B
FY26 ₹25.6B

BAJAJHFL screens 108% overvalued. Compare with Federal Home Loan Mortgage Corporation →

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Cite: Fair Value Calculator (2026). "Bajaj Housing Finance Fair Value". https://www.fairvalue-calculator.com/stock/BAJAJHFL

Peer Group

Mortgage Finance · 92 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Above median
Fair Value upside −52% · Below median
Return on equity (TTM) 12% · Below median
Return on assets 2% · Above median
Net margin (TTM) 62% · Top 25%
Operating margin (TTM) 81% · Top 25%
Revenue growth 42% · Top 25%
Debt / equity 4.60× · Lower than median

Valuation Multiples vs Mortgage Finance median · lower = cheaper

P/E (TTM) 27.1× · Pricier than median
P/B 3.22× · Pricier than 75% of peers
P/S (TTM) 17.45× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 19.4× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 100
PAST48 · sector 55
HEALTH0 · sector 0
DIVIDEND0 · sector 100

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Mortgage Finance stocks, each showing price versus our Fair Value estimate (as of Aug 28, 2026).

Stock Price Fair Value vs Fair Value
Federal Home Loan Mortgage Corporation FMCCT $15.00 $30.00 +100%
Rocket Companies, Inc RKT $13.03 $8.26 −37%
Federal National Mortgage Association FNMAS $10.06 $2.01 −80%
PennyMac Financial Services, Inc PFSI $70.78 $125.45 +77%
UWM Holdings UWMC $1.46 $0.1600 −89%
PNB Housing Finance Limited PNBHOUSING ₹1,169 ₹1,143 −2%
LIC Housing Finance Limited LICHSGFIN ₹502.00 ₹1,004 +100%
Aadhar Housing Finance Limited AADHARHFC ₹471.10 ₹325.75 −31%
Walker & Dunlop, Inc WD $39.71 $32.25 −19%
Aptus Value Housing Finance India Limited APTUS ₹258.50 ₹244.80 −5%

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Frequently asked questions

Is Bajaj Housing Finance (BAJAJHFL) overvalued or undervalued?
As of Aug 28, 2026, our model estimates a fair value of ₹39.96 versus a price of ₹83.08, about −52% upside (overvalued).
What is the fair value of BAJAJHFL?
Our model-based fair value for Bajaj Housing Finance is ₹39.96 (as of Aug 28, 2026), built from audited fundamentals. The current price: ₹83.08.
What is the quality score of BAJAJHFL?
Bajaj Housing Finance has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Bajaj Housing Finance (BAJAJHFL)?
Bajaj Housing Finance reported trailing-twelve-month revenue of about ₹41.6B (latest available figure, as of Aug 28, 2026).
What is the net profit margin of BAJAJHFL?
The net profit margin of Bajaj Housing Finance is about 61.5%, meaning it keeps roughly 61.5% of revenue as net income. Based on the latest reported figures.
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