Tue Jan 28 10:06:51 UTC 2025: ## HSBC Cuts Bajaj Housing Finance Target Price, Maintains ‘Reduce’ Rating

**Mumbai, India** – HSBC has downgraded its target price for Bajaj Housing Finance Ltd. (BHFL) to ₹90, representing a potential 15% downside from current levels, while maintaining a “reduce” rating on the stock. This follows the company’s Q3 results announcement.

Despite a strong Q3 showing, with a 25% year-on-year increase in net interest income to ₹806 crore and net profit surging to ₹548 crore, HSBC anticipates a slowdown in BHFL’s earnings per share (EPS) growth due to pressure on assets under management (AUM) growth. The brokerage firm reduced its EPS estimates for FY25-27 by 3-4%.

The current target price represents a significant drop from the previous ₹110 target and a further decline from the stock’s post-listing high of ₹188, where it has already fallen 44%. While BHFL’s shares are currently trading at ₹111.92 (up 5.84% at the time of writing), the negative outlook from HSBC reflects a broader sentiment among analysts. Nearly 50% of analysts tracking the stock currently maintain a “sell” rating.

The relatively positive Q3 results, including a stable gross NPA ratio of 0.29% and a healthy net interest margin of 4%, haven’t been enough to sway HSBC’s bearish outlook. The brokerage firm’s prediction highlights growing concerns about the future growth prospects of the housing finance company.

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