Bajaj Housing Finance has become the fourth-best listing in 2024, falling behind Unicommerce e-solutions, Premier Energies, and BLS E-Services. Soon after listing, the prices of the shares rallied at 114% premium to its IPO price and eventually closed at a price of ₹165. Moreover, according to Brokerage firm PhillipCapital, the prices may go upto ₹210, which is 3x of its IPO price of ₹70 per share.
Further, the brokerage firm also mentioned that the company’s balance sheet will grow to Rs. 2 Lakh crore in the coming three years, with construction finance remaining around 8% to 10% of the total book.
Will It Follow The Same Trajectory As Zomato?
Bajaj Housing Finance was the biggest IPO of the year so far in terms of size, and it received bids worth ₹3.24 lakh crore, compared to its IPO size of ₹6,560 crore, in just three days. The same was true with Zomato’s IPO, but later, its stock price spiraled. Will this be the same with Bajaj Housing Finance?
According to Devang Mehta from Spark Private Wealth, in the case of Zomato, the initial apprehension during the company’s IPO, reflected in the stock’s volatile swings up and down, stemmed from India’s tendency to value companies based on profits rather than revenues. However, this will not be true with the Bajaj Housing finance IPO.
He mentioned, “Bajaj Group is very typically the heritage of the Bajaj Group, the wealth creation that has happened inside the group, the management quality, the integrity as well as the industry that it functions into.” Devang further states, “ What supports this company is the base being lower, a huge database that this company has, and I think the trust from the investors as well as the trust from the community who sort of borrows from that is also something which would help.”
Also read, Zomato Negotiates Purchase of Paytm’s Entertainment Unit
Should You Invest Now Or Wait for Corrections?
It won’t be too hard to say that it is a good time to invest in Bajaj Housing Finance as the company’s valuation will further stretch by 3-6 times what it currently is, as per PhillipCapital and Devang Mehta. However, remember the stock market is susceptible to change, which makes it difficult to determine the actual value of the stock; therefore, before investing, you should do your due diligence.
