Goldman Sachs Turns Bearish on This Largecap Debutant Following Q4, Cites 38% Downside
Despite the target downgrade Bajaj Housing Finance shares rallied after a decent quarter-end March.
Goldman Sachs Turns Bearish on This Largecap Debutant Following Q4, Cites 38% Downside
Business News: The Bajaj Housing Finance share price reached a high of Rs 136.96 on the BSE during intraday trading on April 24, 2025 with an increase of 4%. The gains in a weak market came after positive earnings from Q4FY25 from the housing lender.
Around 9:51 am at 9:51 am, stock prices of the firm were trading up 1.82 percent to about 134.25 per share.
In the March quarter of FY2025, the standalone net profit increased by 53.85 percent to 586.68 crore during the period ending March 2025 as compared to 381.34 crore in the previous quarter that ended in March 2024.
Net interest income, also known as NII the difference between income earned and interest spent has increased by 30.9 percent over the course of the year.
AUM of Bajaj housing finance target in Q4
The Assets Under Management (AUM) value reached ₹1,14,680 crore by March 31, 2025, which represented a 26% growth from ₹91,370 crore the previous year. A remarkable addition of ₹6,365 crore was recorded in FY25's final quarter.
Analysts and experts give their opinion of Bajaj Housing Finance scrip post Q4
Goldman Sachs and HSBC among other international brokerages have expressed caution towards the stock following Q4 results. Goldman Sachs maintains their sell recommendation and now targets ₹82 for stock value. The brokerage highlights the firm's performance issues during the quarter due to the PPOP growth rate being flat QoQ.
In addition, HSBC also gave a "reduce" call with a amount of the target set at 100. The brokerage said that AUM growth in Q4 was good; high cost ratios and yield compression caused by competition were the main cause of. The brokerage anticipates EPS rises to decrease as a result of the pressures in AUM expansion, NIM compression & normalisation of credit cost. Additionally, it reduces the EPS estimates for FY26-27 by 2.8-3.1 percent.
In the meantime, Vikas Sethi of Sethi Finmart advised purchasing Bajaj Housing Finance for a price of Rs 140 and a an option to stop the sale at Rs 128.
