By market capitalisation, Bajaj Housing Finance Limited (BHFL) has achieved a significant milestone by emerging as India’s largest housing finance company, surpassing Housing and Urban Development Corporation (Hudco) and LIC Housing Finance. Get detailed information on Bajaj Housing Finance IPO.
Market Capitalization Soars to Rs 1.51 Trillion
The company’s market capitalisation now stands at an impressive Rs 1.51 trillion, exceeding its initial public offering (IPO) valuation of Rs 58,300 crore by more than 2.5 times.
Impressive Stock Performance
Following its debut on the stock market, BHFL’s shares have experienced a significant upward trend, surging to an unprecedented peak of Rs 181.48 per share on Tuesday. This remarkable achievement reflects an incredible 136% surge from the issue price and a 10% increase from the previous day’s closing price.
Robust Financial Performance
BHFL has shown impressive financial performance results. Total revenue from operations increased 25.26% year-on-year (YoY) in Q1FY25 to Rs 2,208.65 crore. The company’s profit after tax (PAT) for Q1FY25 stood at Rs 482.61 crore, marking a 4.50% increase from the same quarter last year.
Strong Risk Management
BHFL has impressive risk management capabilities compared to LIC Housing Finance. The company has consistently kept its gross non-performing assets (GNPAs) at lower levels and has demonstrated remarkable asset growth under management from FY22 to FY24.
Valuation and Analyst View
BHFL’s shares are trading at a premium of 3.2 times their June 2024 book value, indicating strong investor confidence. In contrast, LIC Housing’s shares are trading at 1.2 times their book value, reflecting a comparatively lower valuation. PhillipCapital, a brokerage firm, has recently initiated a ‘Buy’ rating for BHFL, setting a target price of Rs 210.
Investor Outlook
Despite its premium valuation, BHFL’s focus on loans with an average ticket size of Rs 5 million and robust risk management make it an attractive option for investors seeking high growth.
Key Statistics:
– Market Capitalization: Rs 1.51 trillion
– IPO Valuation: Rs 58,300 crore
– Q1FY25 Revenue: Rs 2,208.65 crore (25.26% YoY growth)
– Q1FY25 PAT: Rs 482.61 crore (4.50% YoY growth)
– Book Value: 3.2 times (June 2024)
– Target Price: Rs 210 (PhillipCapital)
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