The stock is up 14% in the last one month and has nearly turned positive for the year so far.
Although the stock continues to trade well above its IPO price of ₹70, it is still 34% below its post-listing high of ₹188, despite the recent recovery.
All eyes are on the management of its parent company Bajaj Finance as the term of its MD & CEO Rajeev Jain comes to an end on March 31. Although he has maintained that he will continue to remain with the business, his role post the end of his term remains unclear.
In an exclusive interaction with CNBC-TV18 on Tuesday, Bajaj Finserv Chairman and Managing Director Sanjiv Bajaj highlighted that the board of Bajaj Finance will meet over the next couple of days and take a call on Rajeev Jain’s role in the group and that he remains committed to the business and the group overall.
In light of this, Morgan Stanley came out with a scenario analysis on where will shares of Bajaj Finance head based on the outcome of Rajeev Jain’s future. You can read more on that here.
An important date for Bajaj Housing Finance going forward will be April 15, as that is when its one-year shareholder lock-in period will end.
According to a note from Nuvama Alternative and Quantitative Research, as many as 529 crore shares of Bajaj Housing Finance, or 64% of its outstanding equity will become eligible to trade as the shareholder lock-in ends.
It needs to be specified that the end of the shareholder lock-in does not mean all the 529 crore shares will be sold that day itself but they only become eligible to be traded.
As many as 50% or five out of the 10 analysts that have coverage on Bajaj Housing Finance have a “sell” recommendation on the stock. Three of them have a “buy” rating, while one analyst has a “hold” call. A consensus estimate of these 10 analysts is projecting a potential downside of 15% for the stock going forward.
Shares of Bajaj Housing Finance are trading 5.7% higher at ₹124.35.
