As of Mar 28, 2026, Bajaj Housing Finance Ltd (Finance - Housing) has a deep value score of 40/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -38%.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
BHFL's disciplined growth with pristine asset quality and AAA-rated balance sheet positions it to outperform in India's housing finance recovery cycle.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
Repricing LAP/developer financing portfolios could lift gross spread from 1.8% to 2.0%+ by Q4 FY26
Impact: +₹15 Cr revenue
“Management commentary on portfolio repricing strategy in Q3 FY26 conference call”
Lower cost of funds expected as market recognizes AAA-rated status, compressing funding-cost spread by 20-30 bps
Impact: +₹25 Cr revenue
“Current CRAR of 23.15% and AAA rating from CRISIL/India Ratings”
Continued GNPA maintenance below 0.3% could trigger institutional investor rotation into quality names
“GNPA at 0.27% vs industry average of 1.5-3%”
Strategic shift toward higher-fee LAP/LRD segments (32.7% of AUM) improving revenue mix
Impact: +₹12 Cr revenue
“LAP growth at 32% YoY, LRD at 39% YoY in Q3 FY26”
Risks that could prevent re-rating or deepen the value trap
New regulatory framework for HFCs introduced by RBI
Impact: -50 bps margin impact
Management view: Company maintains AAA rating and strong CRAR as regulatory buffer
Monitor: Changes in RBI's HFC regulatory framework
Attrition rate exceeds 20% industry benchmark
Impact: -30 bps margin impact
Management view: Management acknowledges higher attrition but cites strong disbursement momentum
Monitor: Quarterly attrition rate vs disbursement growth
Banks aggressively cut home loan rates below BHFL's offerings
Impact: -25 bps margin impact
Management view: Focus on differentiated LAP/LRD products to maintain spreads
Monitor: Gross spread trend and market share in LAP segment
Forward-looking targets from management for FY26
Credit Growth Target
23%
NIM Guidance
1.8%
Key Milestones
• 23% credit growth
• 1.8% gross spread
• 0.3% GNPA target
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +18% | +36% | Stable |
| PAT (Net Profit) | +21% | +45% | Stable |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Bajaj Housing Finance Ltd has a deep value score of 40/100 (rated Average). This score is calculated from three components
Bajaj Housing Finance Ltd's quarterly profit (PAT) growth trajectory
Bajaj Housing Finance Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Bajaj Housing Finance Ltd's earnings momentum is Steady — consistent growth.
Bajaj Housing Finance Ltd's valuation metrics
Bajaj Housing Finance Ltd's revenue and margin trends
Bajaj Housing Finance Ltd's trailing twelve month (TTM) performance
Bajaj Housing Finance Ltd key facts
Bajaj Housing Finance Ltd shows limited deep value signals currently — score is 40/100 (Average). Monitor for improvement.
Bajaj Housing Finance Ltd asset quality metrics (financial sector)
Other deep value stocks in Finance - Housing
Finance - Housing deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Bajaj Housing Finance Ltd has 4 key growth catalysts identified from recent earnings analysis
Bajaj Housing Finance Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
