ICICI Securities has issued a Buy rating on Bajaj Housing Finance with a target price of ₹125 in its research report dated July 30, 2026. The brokerage values the stock at 4x FY27E P/B, maintaining its bullish stance on the housing finance company. This contrasts with Motilal Oswal's Neutral rating and ₹95 target price, highlighting the divergent analyst views on the stock's prospects.
Bajaj Housing Finance delivered steady financial results for the first quarter of FY27, with PAT growing 7% quarter-on-quarter and 23% year-on-year, leading to stable Return on Assets (RoA) at 2.3% and Return on Equity (RoE) expansion to 12.5% (up 30bps QoQ). According to ICICI Securities, the company maintained asset quality with lower credit costs at 4bps versus 16bps QoQ, which supported earnings despite Net Interest Margins (NIMs) compressing 14bps QoQ due to intensified competition in the prime housing segment. Management remains optimistic about maintaining 2.1-2.3% RoA and 21-23% AUM growth for FY27, though further 5-10bps NIM compression is likely from the Q1FY27 base due to incremental yields being lower than the current book yield.
According to ICICI Securities' latest review, Bajaj Housing Finance demonstrated robust operational momentum with assets under management climbing 24% year-on-year to nearly ₹1.5 trillion and disbursements rising 33% during Q1FY27. The brokerage highlighted that asset quality remained strong and credit costs stayed benign throughout the quarter, indicating healthy business fundamentals. However, the company continues to face margin pressure from the runoff of high-yield legacy loans, which remains a key monitorable factor for investors. Management's focus on operating efficiency, targeting opex to NTI ratio of 19-20%, is expected to support the company's growth trajectory despite competitive headwinds.
