Bajaj Housing Finance Shares Crash 9% After Block Deal News; Stock Hits New 52-Week Low

Shares of Bajaj Housing Finance crashed sharply on Tuesday morning after reports of a major block deal hit the market. The stock opened weak at Rs. 97 and quickly slipped to an intraday low of Rs. 94.90, with a 9% fall from the previous session's closing price of Rs. 104.50.

As of 10 AM, Bajaj Housing Finance share price was trading at Rs. 96.83, down 7.33% or Rs. 7.66. The sudden sell-off dragged the stock to a new 52-week low, while trading volume spiked nearly 90 times compared to normal levels due to heavy participation from large investors.

Why the Stock Crashed: Block Deal Details

The sharp fall in Bajaj Housing Finance stock came after news that Bajaj Finance, the parent company, plans to sell a 2% stake in its housing subsidiary.

The stake sale is valued at Rs. 1,740 crore, and the deal is expected to be executed at Rs. 96 per share, which is a 9.6% discount to the latest market price. Currently, Bajaj Finance holds an 88.70% stake in Bajaj Housing Finance, meaning the sale will slightly reduce its shareholding but will widen the investor base.

Bajaj Housing Finance Q2 FY26 Results

Earlier in November, Bajaj Housing Finance (BHFL) reported a strong set of numbers for Q2 FY26. The company posted a 24% year-on-year growth in AUM, supported by stable net interest margins and healthy asset quality. Its profit after tax (PAT) rose 18% YoY to around Rs. 640 crore, while net interest income (NII) grew 34% YoY to about Rs. 960 crore.

However, other income declined 23% YoY to nearly Rs. 140 crore, even as total income (NTI) increased 22% YoY to approximately Rs. 1,100 crore. Operating expenses grew 17% YoY to Rs. 210 crore, while pre-provision operating profit (PPoP) rose 24% YoY to around Rs. 880 crore.

Management said they expect medium-term AUM growth to pick up from FY27 onwards because of strong disbursements and improving customer retention. However, they also noted a rise in BT-OUTs (balance transfers out) due to competitive interest rates offered by PSU and large private banks.

Brokerage View: Motilal Oswal Maintains 'Neutral'

In its report, Motilal Oswal Financial Services (MOFSL) shared a cautiously positive outlook on the company. MOFSL maintained a Neutral rating with a target price of Rs. 120.

The MOFSL report said, "We continue to believe in our thesis of BHFL and in management's ability to drive profitability improvement, supported by a healthy AUM CAGR of 22% over FY25-28E, broadly steady NIMs, and benign credit costs. We expect BHFL to continue disbursement growth, although rising competition from PSU banks and higher BT-OUTs may push BHFL to cut its lending rates, which could exert pressure on margins."

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