Jefferies initiates coverage on Bajaj Housing Finance with a “Hold” rating, setting a target price of Rs 92. The firm argues that despite the company’s fast-growing loan book, potential upside is limited because the stock trades at premium valuations. Jefferies also expects lending spreads to moderate, with spreads bottoming out around fiscal year 2027.
The brokerage highlights financial factors that could support earnings. It projects operating leverage benefits and lower credit costs, which it says may cushion results even as margins face pressure. In its growth outlook, Jefferies expects assets under management (AUM) to rise at about a 23% compound annual growth rate and earnings per share (EPS) to grow around 20% through FY29. It also forecasts return on assets staying near 2%, while return on equity improves to about 13.6%.
Across the two outlets, the coverage decision and the core rationale—strong growth but constrained upside due to premium valuation—match, while emphasis is placed differently on spread dynamics and earnings drivers.
