Bajaj Housing Finance shares rally 159% from issue price; here's what investors can do

Bajaj Housing Finance Ltd shares continued their strong upward post-listing march in Tuesday's trade. The stock again jumped 10 per cent to hit its new upper circuit level of Rs 181.48. At this price, it has given multibagger returns to investors by rallying 159.26 per cent from its initial public offering (IPO) price of Rs 70.

The housing finance company has received its first brokerage initiation report from Phillip Capital after a stellar market debut yesterday. Shares of the recently-listed firm have more steam left and can witness a decent upside, analysts from the brokerage said while assigning a 'Buy' call.

"We would look favourably at Bajaj Housing Finance for its acute focus on salaried HL, steady expense ratio, and benign credit costs, manifesting strong return ratios. We value Bajaj Housing Finance at 6.5 times September 2026 BV at Rs 210," they added.

A few other analysts also remained positive on the counter with a long-term view. One of them also suggested that investors can consider booking some profits at current levels.

"This (Bajaj Housing Finance) has been the IPO of the year. We've seen stellar listing gains and follow-up action after that. The stock is playing on demand and supply. Overall, the counter is looking positive as it comes from a good background. One can continue to hold their positions with a long-term view," said Shivangi Sarda, Analyst - Equity, Derivatives & Technical Broking at Motilal Oswal, told Business Today TV.

"Bajaj Housing Finance witnessed a phenomenal rally post-listing. Investors can consider booking some profit at current levels," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"The stock is trading 7-8 times compared to its price-to-book (P/B). There is a strong momentum after the listing but one may get this stock at lower levels. It seems to be more driven by the FOMO (fear of missing out) listing factor. Rather than chasing this stock at CMP, you should wait for other IPOs, which are there in the pipeline," said Gaurav Dua, SVP, Head of Capital Market Strategy at Sharekhan by BNP Paribas.

"The stock has potential to hit an upside target of Rs 195 in the near term. Keep a strict stop loss placed at Rs 172 for this trade," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

Bajaj Housing Finance -- a part of Bajaj Group -- is a non-deposit-taking housing finance company (HFC) registered with the National Housing Bank (NHB).