Bajaj Housing Finance shares dip after multibagger rally: Buy, hold, or sell?

Bajaj Housing Finance Ltd (BHFL) had a stellar debut on the stock market earlier this week, with shares surging by over 150% since their listing.
However, after two days of continuous rallying, the stock saw a dip of as much as 9% today. At around 1:58 pm, shares of the recently listed company were trading 4.40% lower at Rs 173.50 on the Bombay Stock Exchange (BSE).
Despite the drop, investors who got shares during the IPO have made hefty gains, as the stock’s price is still trading at a massive premium over the IPO price.
Yet, some analysts have cautioned investors about the stock, given its unusually high valuation post the public listing.
Deven Chowksey, Managing Director at DRChoksey FinServ, told The Economic Times that although Bajaj Housing Finance is currently expensive, it’s a good stock to consider for long-term portfolios due to its solid growth potential.
The company is expected to grow at 30% annually, which makes it a strong contender despite its high price-to-book value, he added.
Chowksey advised investors to wait for a dip before buying more shares, suggesting it may be worthwhile to purchase the stock during corrections.
Other analysts also suggested that the company has benefits from the ‘Bajaj’ brand and strong management, which makes it ideal for long-term growth.
Most analysts also agree that people who got allotment during the IPO should continue to hold the stock, while those looking to buy should watch out for corrections.
For conservative investors, analysts like Prashanth Tapse from Mehta Equities suggest booking profits, as the listing gains have exceeded expectations.
On the other hand, long-term investors can consider holding the stock for future growth, given the company’s promising business model and positive sector outlook.
The broader advice for those interested in buying is to wait for a correction before making any new purchases, as the stock is expected to remain at a premium due to its growth prospects.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)