Bajaj Housing Finance a Multibagger Stock? Still Upside Left? Analysis – Buy, Hold or Sell? #Finance

Housing Finance share now this is one of the frequently Asked question in last two days because yesterday when baj Housing bold; color: #1a73e8; text-decoration: none;">Finance got listed no over the time no in these two days there were double circuit now today is around 181.50 now the time I’m shooting this CashNews.co the price is almost 181.50 that means a market cap of 1 lakh 151,000 rupees no in no time

within two days this company has crossed 150,000 rupes of market cap the Valuation is gone almost more than seven and half time Price to Book value so at this what at this level what to do whether you should buy sell or hold we are talking into detail about this stock by the way if

you have any question in your mind about any stock sector you can put it in the comment box and normally take into consideration make CashNews.co on that so today we’ll talk about that bajat Housing text-decoration: none;">Finance so let us consider uh let us Analyze This stock along with with the other Housing Finance because this is very important to analyze because at the end of

the day when you are buying a stock you have to see the PS comparison so when we see the market Valuation and all that and more than it let us understand the market cap first so when we talk about market cap currently baj Housing

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is 1 lakh 151,000 rupes as I told and when we Club other 10 housing next 10 Housing Finance market cap it is

around 1 lakh 149,000 rupes so you can see this alone stock is know like a big daddy among the Housing Finance Company when we talk about Loan book it is around 97,000 C

rupees of AUM compared to other like LC housing is almost 273,000 C rupees pnb 66,000 Canin 35,000 and Adar 21,000 so LC housing is much more having almost more than three times of what baj Housing none;">Finance as a Loan book but what price to Book value it is Shing around one when we talk about Roe baj housing is around 15 Roe LC is 16 AD is 19 even when we talk about kin 19 so the there are many other uh stocks also know which are having a good Roe compared to this so

why I shown you this one because just to make you comparative analysis where baj Housing Finance is currently now when we talk about the Valuation perspective all that you

have have to understand one thing that currently the brand which baj is carrying that is what is impacting baj Housing Finance baj bold; color: #1a73e8; text-decoration: none;">Finance you know it’s been a multibagger in last 25 years it’s been so many years after almost one and a half and not two decade now they come up with this IPO and that is why so much of craziness is there but and again one of the reason

why this stock is not falling and why there is almost a double circuit is that 88% is been held by the promoter only 12% free float is there in the market and out of that also you know the hni is there and know uh basically anchor investment investors are there they are there so very very few

percentage is there among the retail investor again the main thing is when you have this type of IPO and this type of listing know many of the mutual fund also want to buy stake in this type of company because they want to show this type of good company in that uh Portfolio so they

are also chasing now suppose one HDFC mutual fund suppose they invest 500 C rupes or 300 C rupes in wi this this type of stock no because this type of stock may be there again among the other schemes also of uh uh HDFC mutual fund so what I’m trying to convin the too many mutual fund also

chasing this stock again the free float is very less now we may say but after the lock in per anchor investment sell the now that may happen but the free float is so less now that it will be protected but how much now like 7 and half times Price to Book value we’ll compare it with the other

uh companies also but at this level you have to understand that this company is growing at a growth of 30% uh Revenue it’s going year on-ear basis so even if we take 30% for next 3 years this 7 and a half or eight Book value make come around three three and a half something

then also it will be much much higher than other uh Housing Finance like LC is trading around 1 point something even other uh housing fin also around 2 to three so then also it is trading on

a high Valuation but no one is having the growth which baj Housing Finance is having and that is why the premium is given maybe you can say 25 30% more premium is given to

this type of company again the brand and faith and all that know the way the track record is that is a second largest Housing Finance Company of course uh HDFC was number one okay but now

they are merg now even HDFC Bank must be thinking they should have listed know HDFC Housing Finance separately you know they could have gain more market share and all more than market share

they must have got a good Valuation if if they have done that way but okay that is pass now they cannot change it but but yes when we talk about baj Housing Finance no they

have mostly given a Loan to site person and that’s why that Loan book is very good again the Yield will be much much better know when you have a strong know whoever is borrowing they have a strong history and that is the benefit what baj

Housing Finance is getting again the way they have a data and all that you know baj none;">Finance how they are actually know behind the customers and giving the Loans and everything personal Loans and all that even all this type of data even baj Housing text-decoration: none;">Finance is having again along with the parent company so all these are positive points which you have to uh keep in mind again guys the uh like uh today morning only know um uh actually Philip Capital given a initiating coverage that no they think that

bajat Finance will be at rupees 210 and that’s why today also morning the one of the main reason why today morning there was a circuit was uh actually you know because

of this research report only and it almost how much it is 181.50 so what it shows it shows know that so much of bullishness is there in this company again the know the Forecasting is that the currently that 97,000 c rupees of Loan book they have it may reach to 2

lakh rupees in next three years and that is what the growth they are expecting now if this type of growth is there of course you can see know a good amount of craziness will come among the investor again this is is much growing faster than the other companies also if we talk about now 70% of the

Loan book is going at 30% plus m is the Sal person so that is the benefit they getting again some of the negative point that they have a construction Loan book but it is limited to 8 to 10% of the total Loan Portfolio so that is

not going to hinder them too much again the Yield will be much more stronger now as the interest set may fall in coming quarters because yeah on 18th that is today tomorrow only the 18th no there will be interested cut may happen at a US level then we may follow the suit in October

onwards in India also so that may benefit the Housing Finance to give more Loan so all these things will impact a lot about this company and that is why no and again guys 30%

growth is not easy now let us compare this with the other Housing Finance comp so that you’ll able to understand much more about the Valuation so when we talk uh when

we compare with other companies so let me share the screen here so yeah so talking about this if you see here now uh Bajaj Housing Finance as I told you it’s almost 1 lakh 151,000

rupees okay now in this if you see the uh P of course no it’s much more higher it is and now compared to LC housing is 7.8 okay the average is 22 okay now we have to mainly check the uh Price to Book value so hudco and more than that LC is almost 1.18 now this is even though it is not shown

here it is around eight times The Price to Book value of baj housing pnb housing is 1.83 atas which is the next B is 4.4 and AAS is almost 3.83 average is 2.8 so you can see here where baj housing is standing so even if we take a two lakh Loan book in next three years currently it

may discount it then it will be around 3 to three and half Price to Book value then also it is higher than compared to the competitors when we talk Ro is 15 like LC is 16 pnb is 11 AAR is 18 okay uh epas is 17 so know uh other companies also having a good Roe Roc is almost also same for epas I

think eptas is having the best Roe Roc when we compare with the total uh no housing Finance companies even Roa you can see here 2.3 so that type of Ro is there for other

companies also okay EV all that let us leave it but like you can see here this is the important thing like sales growth is 34% here okay and Profit growth is 56% in last 3 years when we talk about AP which is one the next Bas is 28 and 31 when we talk about LC is 11 and 20 and this

is where this compan is getting much more better premium okay so LC is 177% growth over the time after still not growing okay and hudco is almost s because it is a uh you can say the public sector company that’s why it is growing so why I’m showing you this this shows that now what type

of growth this company has given over the time okay and compared to competitors they are also having a good figure okay so overall if you see the last three years 34% and 56% growth so now if you if you take this into consideration no um all the Valuation metrics or know if you

compare with competitors yes it is highly valued richly valued now whether can it go to 200 rupees from 181 it can go that depends but the main thing is are they able to sustain they may sustain provided they give a good growth over the time see premium of any company will sustain only when they

give Superior growth now if they continue with 30 35% annual growth and Profitability also grow like this then this Valuation is sustainable but at this level no you have to be little bit thoughtful now if you now what what to do with this stock now if you already

have a stock you got it in IPO you are a lucky guy please please keep it with you no and no if you’re longterm nothing wrong in keeping a longterm side it like suppose it goes from here one or two second then it may start correct but if you at a long term I don’t think there’ll be

a big problem but Valuation of course it know high now you want to buy at this no I will not suggest that let it come to 150 160 you can think about about it then I think over the time this may company May good uh give you a better result or better earning also over the time as the

sales and Profitability grows but uh talking about sell I’ll not suggest that however these are the views which I given is just my personal views and I’m a sister research analy but take your own decision before buying or selling but as this are views you can take

overall the company is very good but the Valuation is little bit high but it may sustain provid the growth is so hope you like this CashNews.co guys if you like this CashNews.co do click like and share this CashNews.co to as much as possible do subscribe to our Channel and if you

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