Bajaj Housing Finance AUM Surpasses ₹1 Lakh Crore in First Business Update Post-IPO

Bajaj Housing Finance Ltd., the newly listed subsidiary of Bajaj Finance, has achieved a major milestone in its first business update since its Initial Public Offering (IPO). The company announced that its Assets Under Management (AUM) crossed the ₹1 lakh crore mark, reaching ₹1,02,550 crore for the quarter ending September 2024. This reflects a 26% year-on-year growth, up from ₹81,215 crore in the same period last year.

Significant Growth in Loan Assets

Bajaj Housing Finance has been making impressive strides in the housing finance sector. The company's loan assets for the quarter reached nearly ₹89,860 crore, a substantial increase from ₹70,954 crore in the same quarter last year. This growth aligns with the company's continued upward trajectory in the housing finance space, as it caters to a growing base of home loan aspirants in India.

IPO Success and Market Performance

The IPO of Bajaj Housing Finance earlier this year ranks as one of the most successful listings in 2024. The company is listed at a premium of over 100%, far exceeding its IPO price of ₹70 per share. On its listing day, the stock soared, delivering 135% gains, with a high of ₹188.5. Despite some profit bookings in recent weeks, the stock continues to perform well, hovering around ₹150 and closed Thursday’s trading session with a 1.4% loss.

Strong Buy Rating from PhillipCapital

PhillipCapital, a leading brokerage firm, initiated coverage on Bajaj Housing Finance with a "buy" rating, setting a price target of ₹210. The firm praised the company for its robust position in the housing finance market, highlighting its ability to attract home loan aspirants with an average loan size of ₹50 lakh, which they consider the "sweet spot" for many buyers. This positions Bajaj Housing Finance as a major player in the housing finance sector, with strong growth prospects in the coming quarters.

Outlook for Bajaj Housing Finance

With its AUM crossing the ₹1 lakh crore mark and continued growth in loan assets, Bajaj Housing Finance is in a strong position to capitalize on the booming housing market in India. The company’s IPO success, coupled with its robust performance in the market, makes it a compelling choice for investors looking for long-term growth in the housing finance sector.

ALSO READ| Axis MF Introduces Nifty500 Value 50 Index Fund: A New Passive Investment Strategy for Long-Term Investors

Bajaj Housing Finance’s performance in the July-September quarter of 2024 has set a strong foundation for its future growth. With a rapidly growing AUM, strong loan asset growth, and a successful IPO behind it, the company is well-positioned to continue its upward trajectory. As PhillipCapital suggests, Bajaj Housing Finance is in a "league of its own," making it a stock to watch in the housing finance sector.