Bajaj Housing Finance shares up 10% after ending 136% higher on listing day, PhillipCapital sees another 27% upside potential
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After ending its listing day 136% higher than the issue price of Rs 70 per share, Bajaj Housing Finance (BHFL) shares rallied another 10% today to Rs 181.48 on BSE. Post-listing, domestic brokerage firm PhillipCapital has also initiated coverage on the stock with a target price of Rs 210. PhillipCapital is the first brokerage to initiate coverage on the stock after its listing, signalling an upside of 27% from Monday’s closing price. “We believe BHFL is in a league of its own, with its focus on the ‘desirable’ sweet spot for many home loan (HL) aspirants – a ticket size of Rs 5mn. This addresses 65% of home-loan originations in India. It is increasingly focusing on Lease Rental Discounting (LRD), a high-yield segment that provides operating leverage with scale,” said PhillipCapital in its report. PhillipCapital also believes that the construction finance (CF) book will be range-bound at 8-10% of its total book and in three years, BHFL is ...